PIP rate increase 2027 DWP, Digi Mart USA News (United Kingdom): The Department for Work and Pensions (DWP) has confirmed key rates for Personal Independence Payment (PIP) for next year. In its annual review, the government confirmed that working-age and disability benefits will rise by 3.5%, taking effect on April 12, 2027, including attendance allowance.
Personal Independence Payment (PIP) is a UK tax-free, non-means-tested welfare benefit designed to help individuals with extra living or mobility costs caused by a long-term physical or mental health condition or disability. The DWP published the new rates today, which will apply from next April.
According to recent DWP data, 4.09 million people were entitled to claim PIP as of July 31, 2026.
In a statement to Parliament after the budget, Work and Pensions Secretary of State Pat McFadden said the new rates will apply in the 2027-28 tax year and will mainly take effect from April 12, 2027. He said the basic and full rates of the new state pension will increase by 3.9%, in line with the rise in average weekly earnings in the year to May-July 2026.
From April, the full annual rate of the new state pension will increase by around £490, and the full annual rate of the basic state pension by around £375.
McFadden also said the standard minimum guarantee in pension credit will rise by 3.9%, to £247.30 a week for a single pensioner and £377.40 a week for a couple from April. Other state pension and benefit rates covered by his statutory review will increase by 3.5%, in line with the consumer prices index for the year to September 2026.
This includes working-age benefits, benefits for people below state pension age, disability-related additional needs benefits, statutory sick pay, statutory maternity pay and additional state pension. The pension credit savings credit maximum will also rise by 3.5%.
A government-commissioned review into the costs and operation of the disability benefits system is due to be published this autumn. Led by social security minister Sir Stephen Timms, the review described the system as “no longer fit for purpose” in its interim findings in July.
Ministers are expected to set out their response to the Timms review on disability benefits reform, and to the Milburn review on getting more young people not in education, employment or training (NEETs) into work, in the coming weeks.
Some assessments have suggested that giving people cash should be reconsidered. An Institute for Fiscal Studies (IFS) report on reforming PIP and replacing cash with “in kind” help said: “A particular advantage of cash is that it enables claimants to choose how to spend the benefit (and they could, for example, spend it on social care or healthcare).” The report added that it is “less obvious that cash is the right form of support if the goal is to address reductions in well-being arising from disability.”
