19 October 2023 , 16:25
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Brits claiming disability benefits could see a huge increase in their payments from next April, money expert Martin Lewis has revealed.
It comes after the Office for National Statistics (ONS) announced that September's Consumer Price Index (CPI) inflation rate was 6.7 per cent. Consumer champion Mr Lewis explained people should expect to see an increase to their benefits unless the government change the law. He told listeners tuning into his latest BBC radio 5 Live Podcast: "There are things like disability benefits, incapacity benefits and Carer's Allowance, which by law, rise each year in line with September's CPI inflation. So they will be going up unless Parliament changes the law of course, but that is unlikely to happen."
This means people receiving benefits such as Personal Independence Payment (PIP), Disability Living Allowance (DLA), Attendance Allowance and Adult or Child Disability Payment will see their current payments rise by a staggering 6.7 per cent, reports Daily Record.
The September CPI figure is crucial as it forms part of the Triple Lock, ensuring that the State Pension doesn't lose value over time and guarantees that each year it rises by the highest of these three measures:
- Average earnings growth - 8.5% (with bonuses), 7.8% (without bonuses)
- September CPI inflation rate - 6.7%, or
- 2.5 per cent
Under the policy, people on the State Pension will see their payments rise by the earnings growth measure, however, there has been much speculation that the UK Government may use the lower figure of 7.8 per cent. Chancellor Jeremy Hunt will confirm the State Pension uprating during the Autumn Statement in Parliament on November 22.
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Estimated disability benefit payment rates from April
The estimated calculations below have been done by the Daily Record and are not confirmed. They should only be used as an informal guide on how much disability payments could increase next April. Devolved benefits are also expected to rise in line with the Department for Work and Pensions (DWP) to prevent a two-tier benefits system. All pay rates have been calculated using the UK Government rounding policy.
Personal Independence Payment (PIP) and Adult Disability Payment (ADP)
An uprating of 6.7 per cent would see people on PIP or ADP receive:
Daily living component
- Standard rate: £72.70 (from £68.10)
- Enhanced rate: £108.60 (from £101.75)
Mobility component
- Standard rate: £28.70 (from £26.90)
- Enhanced rate: £75.75 (£71.00)
Weekly payments
- Minimum PIP/ADP per week: £28.70 (£114.80 per 4-week pay period)
- Maximum PIP/ADP per week: £184.35 (737.40 per 4-week pay period)
Disability Living Allowance, Disability Living Allowance for Children, Child Disability Payment
Care component
- Lowest - £28.70 (from £26.90)
- Middle - £72.70 (from £68.10)
- Highest - £108.60 (from £101.75)
Mobility component
- Lower - £28.70 (from £26.90)
- Higher - £75.75 (from £71.00)
Weekly payments
- Minimum per week: £28.70 (£114.80 per 4-week pay period)
- Maximum per week: £184.35 (737.40 per 4-week pay period)
Attendance Allowance
People over State Pension age claiming Attendance Allowance currently receive either £68.10 (lower rate) or £101.75 (higher rate) each week. As the benefit is usually paid every four weeks, this amounts to either £272.40 or £407 every payment period. An uprating of 6.7 per cent would see Attendance Allowance claimants receive either £72.70 (lower rate) or £108.60 (higher rate) each week. This amounts to either £290.80 or £434.40 every pay period.
Carer’s Allowance
People claiming Carer’s Allowance currently receive £76.75 each week, or £307 every four-week pay period. An uprating of 6.7 per cent would see weekly payments rise to £81.90, or £327.60 each pay period.
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