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The Department for Work and Pensions (DWP) is set to confirm the new payment rates for State Pensions and benefits for next year just prior to the Autumn Budget on November 26. Recently, the DWP announced that initial plans to reform Personal Independence Payment (PIP) have been put on hold until a 'comprehensive review' into the current assessment process concludes in 2026. The department also confirmed that the disability benefit will continue to rise each year in line with the September inflation rate. In recent weeks, official data revealed an inflation rate of 3.8 per cent in September, which means it is now possible to predict how much benefit payments will rise by for over 3.8 million PIP claimants from April 2026. A 3.8 per cent increase would see claimants of the highest awards for both the daily living and mobility components receive £194.55 per week as opposed to the current £187.45 payment. The new financial year commences on Monday, April 6 2026, which is the date whereby all benefits and the State Pension payments will rise. The government is set to confirm the exact amount payments will rise by in the coming months, 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 figure. The Daily Record reports that this forecast can be used by households as a guide to help plan budgets and factor in the 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 PIP recipients could receive 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 send letters to all claimants before April outlining their new payment rates. You may receive the lower or higher daily living or mobility component: Lower rate for daily living and mobility If you are on the lower rates of both components, your new payments are forecast to be: Higher rate for daily living and mobility If you receive the higher rates of both components, your new payments are projected to be: Lower rate of one component and higher rate of the other If you receive the lower rate of one component and the higher rate of the other, your new payments are projected to be: PIP and all disability benefits are tax-free and do not impact the benefit cap. The DWP will announce the new payment rates and allowances for all benefits before the end of this year.
