The UK government confirmed the benefits rates rise for 2025 in the October budget. The rise in the 2025 benefit rates would increase Personal Independence Payment (PIP) as well. The PIP recipients can check how much their PIP payments will increase from April 2025.
PIP New Rates 2025
Liz Kendall, the Secretary of State for Work and Pensions has confirmed the uprating in the working age benefit amount from April 2025 in the October budget. The uprating is published in the written statement, ensuring the hike in benefit amount from 2025 in many benefits, such as PIP, Disability allowance, carers allowance, etc.
The Work and Pensions is obliged to review the State Pension and benefit rates annually and Ministers present the review to the Parliament with the new benefit or pension rates based on the inflation. The Department of Work and Pensions had reviewed the benefit and pension rates and estimated a hike of 1.7% in line with the September 2024 CPI increase.
With the DWP review and hike confirmation from April 2025, the PIP beneficiaries can expect a rise in new rates from FY 2025 to 2026. The PIP beneficiaries receive the benefit as an extra living cost due to their long-term mental or physical condition which limits their capability to work, hence, the benefit has two components. So, with the hike of 1.7%, the PIP recipients will get the following new rates from 2025:
- A lower weekly rate would increase to £73.90 from the current rate of £72.65
- The higher weekly rate would increase to £110.40 from the current PIP rate of £108.55
- The Lower weekly rate increased to £29.40 from £28.70
- The enhanced rate for severe conditions or immobility is increased to £77.05 from £75.75
What makes you eligible for PIP?
The PIP benefits are for UK people who meet the below eligibility requirements set by the authority:
- You must have a long-term health or mental condition or disability that limits your capability to work, do everyday tasks, or move around.
- Your age should be 16 or above to receive the benefit.
- Your difficulties with mobility challenges will last for at least 13 months due to your condition or disability.
- You can still get the PIP benefit when you receive other benefits except the Armed Forces Independence Payment.
The PIP eligibility or eligibility assessment may change under the proposed PIP reforms whose decision is still pending. The PIP reforms suggest that eligibility should be focused more on a person’s condition rather than on time suffering from the disability. The Labor government is yet to take its stand on the PIP reform on eligibility and payment changes.
What is happening with PIP reforms?
The previous UK government proposed some major changes in the PIP earlier, which created a major discussion on the PIP reforms among the beneficiaries. The UK government was about to present in the Parliament however, due to the July election it got halted. Now, the new government will decide the future of PIP reforms.
DWP conducted a consultation on PIP reforms to know the opinions of beneficiaries and stakeholders on the reform’s impact on 22 July 2024. The Labour government has not decided on this matter according to the reports, people can expect the PIP reforms enactment or other changes in 2025.
Under the proposed PIP reforms, the previous UK government has proposed the following notable changes that made to the DWP government draft:
- The proposed PIP reforms suggested changing the cash payment to one-off payments or vouchers to ensure the needed people receive support for their medical expenses and daily expenses.
- The reform proposes to change the assessment method so that people suffering from long-term health conditions or disability will not have to go under regular assessment. The assessment will focus more on the condition rather than the individual capability work.
- The proposed PIP reform will make the benefit eligibility centered more on people’s conditions rather than their ability to do everyday tasks and move around.
Impact of PIP New Rates 2025
The DWP has increased the PIP rates for 2025 based on the September 2024 CPI, which will impact millions of families in the following ways:
- The new rates can increase the chances of high payment for people who are eligible for both components to a maximum payment of £184.30 with additional support of other benefits (if any). The claimants should understand if they get both components, they receive £4 extra in a week due to the hike.
- The weekly payment between £29.30 and £187.45 will increase to a monthly payment of £116.80 or £749.80 based on their eligibility or assessment rate for the PIP benefits.
- If the government changes the cash payment to vouchers or one-off payments, the recipient can receive support to purchase major medical devices or equipment for the betterment of their conditions through PIP one-off payment and use the vouchers for their daily expenses.
The PIP rates with a hike of 1.7% will be effected from 01 April 2025 based on the current inflation. The recipient may also get the decision on the proposed reforms from the government in 2025 as well, which means changes in payment and eligibility assessment.
