Exact amount DWP payments will rise next year for those with disabilities including PIP and Disability Living Allowance

MILLIONS of people who get disability-related benefits can expect to see their payments increase next year.

Chancellor Rachel Reeves confirmed in the budget that working age benefits will increase by 1.7%, while the state pension will shoot up by 4.1%.

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The 1.7% increase includes the disability living allowance (DLA), personal independence payments (PIP) and Universal Credit. 

Here are all the main benefits available to people with disabilities and how much they will increase by on April 6 next year.

Personal independence payment (PIP)

PIP is designed to help with the additional costs of living for people who have mental or physical disabilities.

There are two main elements to PIP: a daily living part. for people who need help with everyday tasks. and a mobility element. for people who need help getting around.

Each element has a lower and higher weekly rate depending on how much difficulty you have.

Someone who gets the higher rate of each element currently gets £184.30 a week, or £9,583.60 a year. But from April, this will rise to £9746.52 meaning an increases of around £163.

This is how much each element will rise from next year.

Disability Living Allowance (DLA)

The DLA is a tax-free benefit that helps people with disabilities and their families with the costs of care and mobility.

For anyone over 16 who was born after April 8, 1948, the benefit is being phased out and being replaced with PIP.

You’ll get a letter saying that your claim is ending and explaining how to move across to PIP.

If you’re over state pension age,  you might be moved to Attendance Allowance. In Scotland, over 16s will be moved to Adult Disability Payments.

If you’ve not been moved across by April, your rates will go up.

For someone on the highest rate for both the care and mobility components, the annual amount would increase from £9,583.60 to around £9746.

Here’s how the rises for each element work.

Children can continue to get the DLA. The rate is between £28.70 and £184.30 a week and depends on the level of help the child needs. From April 2025, this will increase to between £29.19 and £187.43 a week.

If your child lives in Scotland, you need to apply for the Child Disability Payment instead. You can read more about this benefit on mygov.scot.

Attendance Allowance

Attendance Allowance is designed to help with extra costs if you have a disability or health condition that is so severe that you need someone to help look after you.

It’s paid at two different rates depending on the level of care that you need.

The lower rate is currently £72.65 a week, which works out at £3,777.80 a year. From next year this will increase to £3,842.02 annually. 

The higher rate, for people who need supervision at day and night, is currently £108.56 a week. This works out at £5,644.60 a year. From April, that will increase to £5,740.56.

Disability premiums

If you receive any of the following benefits, you can get a disability premium added to your award if you qualify:

• Income Support
• income-based Jobseeker’s Allowance (JSA)
• income-related Employment and Support Allowance (ESA)
• Housing Benefit

There are currently three different premiums, each with a separate rate for couples and singles. You can get more than one premium at a time.

Each of these will increase by 1.7% next year, meaning that a couple getting all three premiums would see their annual payout increase from £13,174.20 to around £13,398.

New-style employment and support allowance (ESA)

If you are ill or have a health condition or disability that limits your ability to work, you might be able to claim the New Style Employment and Support Allowance.

It’s a fortnightly benefit that is based on your National Insurance record. That means you normally need to have enough NI contributions in the previous two tax years before your claim.

If you’re entitled to ESA, you’ll be placed in one of two groups.

The first is a work-related activity group for people who cannot work now, but can prepare to work in the future. The second is a support group for people who cannot work now and are not expected to prepare for future work.

This year, you can get up to £90.50 a week if you’re in the work-related activity group or up to £138.20 a week if you’re in the support group. From April, this will rise to £92.04 or £140.55 accordingly.

Universal Credit

If you have a health condition or disability and are entitled to Universal Credit, you may be eligible for the Limited Capability for Work (LCW) or Limited Capability for Work-Related Activity (LCWRA) groups. 

The Department for Work and Pensions (DWP) uses a Work Capability Assessment to determine which group you fall into.

Currently, those in the Limited Capability for Work group get £156.11 a month, but this will rise to £158.76 from April.

Anyone in the Limited Capability for Work and Work-Related Activity gets £416.19 a month, which will rise to £423.27.

Everything you need to know about Universal Credit

Carer’s Allowance

Carer’s allowance is a benefit to help people who have caring responsibilities.

To qualify, you need to care for the person for at least 35 hours a week. It’s currently worth £81.90 a week, which will rise to £83.29 from next year.