DWP offering eight PIP payment options ahead of disability reforms due in spring

People newly applying for PIP from the Department for Work and Pensions, or whose existing claim is up for review, are being offered a number of different payment options if their award is approved following an assessment. Personal Independence Payment (PIP) is claimed by around 3.5 million people in England and Wales plus another 130,000 in Scotland who are gradually being transferred to the nation's new devolved benefit, Adult Disability Payment.

Thousands of new claims are made every month for PIP with double the number of people going onto the benefit than there were before the pandemic. For new applicants and those whose entitlement is up for review at the end of its fixed term or when there has been a change in their circumstances, there are eight possible PIP payment combinations that can be made at present, up to a maximum of £737 every four weeks. These are in place for this financial year, ahead of any potential changes due in spring 2025.

Chancellor Rachel Reeves said in the Budget on October 30 that Labour is planning "fundamental reforms to the health and disability benefits system", which will include "savings" from an overhaul of the work capability assessment. This assessment is used to determine if people need to find a job or instead get incapacity payments on top of their Universal Credit and ESA (Employment and Support Allowance) benefits. Many people receiving these additional amounts - either through the ESA support group or the Universal Credit equivalent of LCWRA (limited capability for work and work-related activity) - also receive PIP.

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PIP and other disability benefits are to get an inflation-based rise from April 2025, though the impact of the upcoming reforms has not yet been announced. Work and Pensions Secretary Liz Kendall confirmed after the Budget: "In England and Wales, Personal Independence Payment and other benefits to help with additional needs arising from disability, and the rate of Carer's Allowance, will also increase by 1.7 per cent."

Sir Stephen Timms, Minister of State for Social Security and Disability, says the Department is "now undertaking a new survey of Personal Independence Payment customers to understand more about their disability-related needs" so it can look at what extra costs people have and what they use their PIP to help cover. He also says the Government is gathering a "range of evidence" ahead of any potential changes.

Sir Stephen said: "PIP is a non-contributory, non-means-tested, additional-cost benefit and can be worth over £9,500 a year, tax-free. Individuals can choose how to use the benefit, in the light of their individual needs and preferences. The benefit can also be paid in addition to any other financial or practical support someone may be entitled to such as Universal Credit, Employment and Support Allowance, NHS services, free prescriptions, help with travel costs to appointments or the Blue Badge scheme. The benefits have been consistently uprated in line with inflation since they were introduced and were, like other benefits, increased by 6.7 per cent from April 8, 2024."

Personal Independence Payment (PIP) rates 2024/2025

Daily Living Component

• Standard: £72.65 a week
• Enhanced: £108.55 a week

Mobility Component

• Standard: £28.70 a week
• Enhanced: £75.75 a week

These weekly payment rates are set to rise by 1.7 per cent next year if the current components and payment levels remain in place following a shake-up of disability benefits.

PIP payment combinations 2024/2025

PIP awards are based on a weekly payment rate but are paid out every four weeks. So in months that span five weeks, you could get one PIP payment in your account at the start of the month and another at the end of the same month. Based on our calculations, here are all the possible payment amounts you could receive.

1. Standard daily living only

Payment rate: £72.65 a week

Monthly amount (every four weeks): £290.60

Annual amount (based on 52 weeks): £3,777.80

2. Enhanced daily living only

Payment rate: £108.55 a week

Monthly amount (every four weeks): £434.20

Annual amount (based on 52 weeks): £5,644.60

3. Standard mobility only

Payment rate: £28.70 a week

Monthly amount (every four weeks): £114.80

Annual amount (based on 52 weeks): £1,492.40

4. Enhanced mobility only

Payment rate: £75.75 a week

Monthly amount (every four weeks): £303

Annual amount (based on 52 weeks): £3,939

5. Standard daily living plus standard mobility

Payment rate: £101.35 a week

Monthly amount (every four weeks): £405.40

Annual amount (based on 52 weeks): £5,270.20

6. Standard daily living plus enhanced mobility

Payment rate: £148.40 a week

Monthly amount (every four weeks): £593.60

Annual amount (based on 52 weeks): £7,716.80

7. Enhanced daily living plus standard mobility

Payment rate: £137.25 a week

Monthly amount (every four weeks): £549

Annual amount (based on 52 weeks): £7,137

8. Enhanced daily living plus enhanced mobility

Payment rate: £184.30 a week

Monthly amount (every four weeks): £737.20

Annual amount (based on 52 weeks): £9,583.60

This means the minimum payment a person can currently receive is £114.80 every four weeks. The maximum is £737.20 every four weeks.

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