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The Department for Work and Pensions (DWP) is expected to confirm the new payment rates for State Pensions and benefits for the 2026/27 financial year just before the Autumn Budget on November 26. The DWP recently announced that plans to reform Personal Independence Payment (PIP) have been put on hold until a 'comprehensive review' into the current assessment process concludes next year. However, DWP also confirmed that the disability benefit will continue to rise each year in line with the September inflation rate. This means payments for over 3.8 million PIP claimants are set to rise by 3.8 per cent. An increase of 3.8 per cent would see people on both the highest awards of the daily living and mobility components rise from £187.45 per week to £194.55. The new financial year begins on Monday, April 6 2026. This is the date all benefits and the State Pension will rise, but it’s important to be aware the actual amounts will be published by the DWP, usually in November or December. That being said, it is possible to calculate the potential payment rates for all eight mixed award types of PIP based on the September CPI. This can be used as a guide to help plan household budgets and factor in the uprating. The Scottish Government will announce the uprating of devolved benefits such as Adult Disability Payment (ADP), Child Disability Payment, Pension Age Disability Payment (PADP) and Carer Support Payment at the Scottish Budget on January 13. This is expected to be announced before that date, possibly around the same time as the DWP confirms its uprating. There are two components to PIP - daily living and mobility. PIP would be paid at the following amounts per week under 3.8 per cent CPI uprating: Daily living Mobility People on PIP could be awarded the lowest rate of one or both parts, the highest rate of one or both parts, or a mixed award of the lower or higher rates of each component. The DWP will issue letters to all claimants before April detailing their new payment rates. You may be awarded the lower or higher daily living or mobility component: If you are on the lower rates of both components, your new payments are forecast to be: If you are on the higher rates of both components, your new payments are forecast to be: If you are on the lower rate of one component and the higher rate of the other, your new payments are forecast to be: Remember, PIP and all disability benefits are tax-free and do not affect the benefit cap. The DWP will publish the new payment rates and allowances for all benefits before the end of this year, if anything changes before then we will update this article to ensure accuracy for all claimants.
