PIP claimants set to see up to £700 a year increase from April | Personal Finance | Finance

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In the Autumn Statement last year, Chancellor Jeremy Hunt announced benefit recipients will see their payments rise in April 2023. PIP is delivered by the Department of Work and Pensions (DWP) and aims to improve living standards for those suffering from long-term physical disabilities or mental health conditions.

Some three million people who currently receive PIP are set to receive a cash boost this year.

According to the DWP, PIP takes into account two assessments of a potential recipient’s needs: daily living and mobility.

This means assessors will take into account help a recipient needs with activities such as eating, drinking or preparing food as well as how a person physically moves around or leaves the home.

A new applicant will be required to undergo a DWP assessment to establish the extent of their condition’s impact on their day-to-day life.

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A score will then be assigned according to the applicant’s ability to perform tasks, which will in turn be used to determine precisely how much money they should be awarded in PIP.

Claimants are paid based on a higher and lower rate.

From April, the rates will be:

Lower weekly rate – £68.10 (up from the present £61.85 per week)
Higher weekly rate – £101.75 (up from the present £92.40 per week)

Lower weekly rate – £26.90 (up from the present £24.45 per week)
Higher weekly rate – £71 (up from the present £64.50 per week)

Currently, an individual claiming the higher weekly rates of both components would receive £156.90, which would be £627.60 for the month.


Once the rate increases, anyone awarded both of the higher payments would get £172.75 a week, equivalent to £691 a month or £8,983 a year.

It should be noted that PIP only applies in England, Wales and Northern Ireland – people living in Scotland need to apply for Adult Disability Payment instead.

Britons aged 16 or over and under state pension are entitled to claim PIP if they have a disability that inhibits their ability to perform everyday tasks, and which they expect to last for at least 12 months or more.

Those who claim this support have a responsibility to report any changes in their life to the Government department.

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Failure to do so could see PIP claimants lose some of the money they receive and, sometimes, all of it.

Examples of a serious life change include someone’s health condition getting better or worse, or someone moving house or abroad.

It should be noted that when someone is honest about ongoing changes in their life, the DWP may decide to take money away from their payment.

This is because the Government department believes a claimant’s situation has improved and they need less financial support as a result.

However, it is not the case that every circumstance change will lead to someone seeing their rate of PIP decrease.

In some situations, the amount of money someone gets from PIP could rise even if they experience a significant life change.

The Chancellor announced that state benefits will rise in line with the Consumer Price Index (CPI) rate of inflation for September 2022.

On top of this rate hike for DWP benefits, the Government is also continuing much of its cost of living support from this past year.

Those on means-tested benefits will be eligible for a £900 cost of living payment in 2023, while people who are disabled and pensioners will receive £150 and £300, respectively.

However, some cost of living assistance is not coming back next year, notably the £400 grant to help people pay their energy bills.

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