The DWP has confirmed the new rates of disability and carer benefits in England and Wales (Image: Universal Images Group via Getty Images)

DWP announces PIP, DLA and Attendance Allowance payment rates for 2025/2026

by · Birmingham Live

The Department for Work and Pensions has issued the new payment rates for disability and carer benefits starting in April 2025, including Personal Independence Payment (PIP). Chancellor Rachel Reeves announced benefit increases of 1.7 per cent in the October Budget, and the exact amounts for the 2025/2026 financial year have today been detailed.

There are now 3.6 million people claiming PIP including thousands in Scotland who will eventually be moved to the new Adult Disability Payment introduced to replace PIP for everyone north of the border.

More than 1.3 million people of all ages receive Disability Living Allowance, which is now only available to be claimed for children under 16, while another 1.6 million people get Attendance Allowance, a disability payment for those over State Pension age. DLA payments for children are being replaced by the new Child Disability Payment in Scotland.

READ MORE:

Just over a million people get Carer's Allowance for looking after someone who is on disability benefits. If you claim Universal Credit as well, the full monthly equivalent of your Carer's Allowance is deducted from your payment but Universal Credit offers its own similar support in the form of a top-up called Carer Element.

Carer's Allowance can only be claimed by those who spend at least 35 hours looking after someone and earn less than £151 from a paid job they fit in on top of that. However, overpayments accumulated by people who continue to receive the benefit after inadvertently going above the wage limits, even by the slightest amount, have become an issue in recent years.

In a move that could help ease these issues, Chancellor Rachel Reeves announced in the October Budget that the earnings threshold for Carer's Allowance is to increase from £151 per week to £196 per week starting in April 2025. This is equivalent to working 16 hours at the National Living Wage. In Scotland, Carer's Allowance is being replaced by the new Carer Support Payment with all claimants to be moved across by spring 2025.

Here are the new rates for disability and carer benefits in England and Wales. They will come into effect from April 7, 2025, the first full week of the new financial year.

Attendance Allowance

Higher weekly rate: increasing from £108.55 to £110.40

Lower weekly rate: increasing from £72.65 to £73.90

Carer's Allowance

Carer's Allowance weekly rate: increasing from £81.90 to £83.30

Universal Credit Carer Element: increasing from £198.31 a month to £201.68 a month

Disability Living Allowance

Care component

Highest weekly rate: increasing from £108.55 to £110.40

Middle weekly rate: increasing from £72.65 to £73.90

Lowest weekly rate: increasing from £28.70 to £29.20

Mobility component

Higher weekly rate: increasing from £75.75 to £77.05

Lower weekly rate: increasing from £28.70 to £29.20

Personal Independence Payment (PIP)

Daily living component

Enhanced weekly rate: increasing from £108.55 to £110.40

Standard weekly rate: increasing from £72.65 to £73.90

Mobility component

Enhanced weekly rate: increasing from £75.75 to £77.05

Standard weekly rate: increasing from £28.70 to £29.20

Severe Disablement Allowance

Basic weekly rate: increasing from £98.40 to £100.05

Age-related addition (from Dec 90)

Higher weekly rate: increasing from £14.70 to £14.95

Middle weekly rate: increasing from £8.15 to £8.30

Lower weekly rate: increasing from £8.15 to £8.30

Get breaking news on BirminghamLive WhatsApp. Join our dedicated community for the latest updates. You can find out more in our Money Saving Newsletter, which is sent out daily with all the updates you need to know on pensions, PIP, Universal Credit, benefits, finances, bills, and shopping discounts.