People claiming Personal Independence Payment (PIP) who manage to withstand the proposed Department for Work and Pensions (DWP) cuts could still benefit from an annual boost worth hundreds of pounds in 2025.
The DWP has officially stated that PIP will continue to rise annually, with adjustments linked to the September inflation rate. According to the latest figures from the Office for National Statistics (ONS), the Consumer Prices Index (CPI) inflation stood at 3.8% in August, remaining unchanged from July.
What the Increase Means for PIP Recipients
This rise directly impacts individuals receiving the highest rate of both daily living and mobility components. Payments are expected to grow from £749.80 every four weeks to £778.20, equating to an increase of £28.40 per payment cycle. Over a year, this equals an additional £336.
| Component | Current Payment (4-weekly) | New Payment (4-weekly) | Increase | Annual Rise |
|---|---|---|---|---|
| Daily Living + Mobility (Max Rate) | £749.80 | £778.20 | £28.40 | £336 |
Inflation’s Ongoing Impact on UK Households
Despite being stable, inflation at 3.8% continues to place significant strain on families, especially as petrol prices remain elevated. This persistent pressure has left many households grappling with higher living costs.
Political Reactions to the Current Situation
- Rachel Reeves, Labour’s Chancellor, acknowledged the financial difficulties families face:
“I know families are finding it tough and that for many the economy feels stuck. That’s why I’m determined to bring costs down… Our Plan for Change includes raising the National Living Wage, extending the £3 bus fare cap, and broadening free school meal access.” - Mel Stride, Conservative Shadow Chancellor, countered:
“With borrowing costs hitting a 27-year high, working people and businesses are bracing for more tax rises due to Labour’s mismanagement.” - Martin Sartorius, Chief Economist at the CBI, noted:
“The Monetary Policy Committee will likely keep interest rates unchanged, but balancing a slowing labour market with persistent inflation will remain a challenge.”
While looming DWP cuts raise concerns for disability benefit claimants, the annual PIP uplift tied to inflation ensures that many recipients will still see higher payments in 2025. For those on maximum rates, this means an extra £336 each year, providing some relief as households face ongoing inflation and rising costs.
FAQs
How much will PIP increase in 2025?
PIP will rise by 3.8%, meaning those on maximum awards will see an annual boost of £336.
When will the new PIP rates take effect?
The new rates, based on September 2025 inflation, will be applied from the start of the new financial year in April 2026.
Will the proposed DWP cuts affect the increase?
Although cuts are being discussed, the inflation-linked annual rise is guaranteed, so claimants will still see higher payments.