Payment rates for a range of Department for Work and Pensions (DWP) benefits are changing. From April 2023, the amount recipients of certain benefits receive will get a boost to their bank accounts.
The increase was confirmed when Chancellor of the Exchequer, Jeremy Hunt, revealed in his Autumn Statement that all DWP and HMRC benefits would get a 10.1% rise in the next financial year, based on the September 2022 rate of inflation. This includes disability benefits such as the Personal Independence Payment (PIP), which is claimed by three million people to help with the extra costs of physical and mental health conditions.
PIP is a government benefit intended to help with extra living costs for those with a long-term physical or mental health condition or disability, and therefore, have difficulty doing certain everyday tasks or getting about due to that condition. PIP is the eventual replacement for Disability Living Allowance (DLA) however, there are currently still around 1.2 million people on that older benefit. In Scotland, both benefits have been replaced by new Adult Disability Payment and Child Disability Payment.
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According to Nottinghamshire Live sister publication, Birmingham Live., another 1.5 million people get Attendance Allowance, which helps with extra costs for those who have reached State Pension age and have a disability that's severe enough to need someone to help look after you, reports In addition, 1.3 million people claim Carer's Allowance for looking after someone who is on a disability benefit.
The rate increase will be in place from April 2023. Here's how the changes impact rates. Rates are detailed weekly rates unless otherwise stated.
Personal Independence Payment (PIP) / Adult Disability Payment in Scotland
Daily living component
- Enhanced - increasing from £92.40 to £101.75
- Standard - increasing from £61.85 to £68.10
Mobility component
- Enhanced - increasing from £64.50 to £71
- Standard - increasing from £24.45 to £26.90
Claimants are assessed for what level of PIP they receive. If an application is successful, the lowest amount is £24.45 a week for standard mobility (going up to £26.90 from April) and the highest is £156.90 a week for both enhanced rates combined, which will rise to £172.75 a week from April. PIP is actually paid every four weeks so that's a rise from £627.60 to £691 a month. The same applies to the new Adult Disability Payment in Scotland.
Disability Living Allowance / Child Disability Payment in Scotland
Care Component
- Highest - increasing from £92.40 to £101.75
- Middle - increasing from £61.85 to £68.10
- Lowest - increasing from £24.45 to £26.90
Mobility Component
- Higher - increasing from £64.50 to £71
- Lower - increasing from £24.45 to £26.90
Attendance Allowance
- Higher rate - increasing from £92.40 to £101.75
- Lower rate - increasing from £61.85 to £68.10
Carer's Allowance
- Increasing from £69.70 to £76.75
Incapacity Benefit
- Long-term Incapacity Benefit - increasing from £118.25 to £130.20
- Short-term Incapacity Benefit (under state pension age) - lower rate increasing from £89.25 to £98.25, higher rate increasing from £105.55 116.20
- Short-term Incapacity Benefit (over state pension age) - lower rate increasing from £113.45 to £124.90, higher rate increasing from £118.25 to £130.20
- Increase of Long-term Incapacity Benefit for age - lower rate increasing from £6.95 to £7.65, higher rate increasing from £12.55 to £13.80
- Invalidity Allowance (Transitional) - lower rate increasing from £6.95 to £7.65, middle rate increasing from £6.95 to £7.65, higher rate increasing from £12.55 to £13.80
Industrial Injuries Disablement Benefit
Standard rate for assessed level of disablement
- 100% disablement - increasing from £188.60 to £207.60
- 90% disablement - increasing from £169.74 to £186.84
- 80% disablement - increasing from £150.88 to £166.08
- 70% disablement - increasing from £132.02 to £145.32
- 60% disablement - increasing from £113.16 to £124.56
- 50% disablement - increasing from £94.30 to £103.80
- 40% disablement - increasing from £75.44 to £83.04
- 30% disablement - increasing from £56.58 to £62.28
- 20% disablement - increasing from £37.72 to £41.52
Maximum life gratuity (lump sum)
- Increasing from £12,520 to £13,780
Unemployability Supplement
- Increasing from £116.60 to £128.40
Increase for early incapacity
- Lower rate - increasing from £7.75 to £8.55
- Middle rate - increasing from £15.50 to £17.10
- Higher rate increasing from £24.15 to £26.60
Maximum reduced earnings allowance
- Increasing from £75.44 to £83.04
Maximum retirement allowance
- Increasing from £18.86 to £20.76
Constant attendance allowance
- exceptional rate - increasing from £151 to £166.20
- intermediate rate - increasing from £113.25 to £124.65
- normal maximum rate - increasing from £75.50 to £83.10
- part-time rate - increasing from £37.75 to £41.55
Exceptionally severe disablement allowance
- Increasing from £75.50 to £83.10
Severe Disablement Allowance
Basic rate
- Increasing from £83.75 to £92.20
Age-related addition (from Dec 90)
- Higher rate - increasing from £12.55 to £13.80
- Middle rate - increasing from £6.95 to £7.65
- Lower rate - increasing from £6.95 to £7.65
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