Nine DWP benefits including Universal Credit and State Pension set to rise

The exact amount Department for Work and Pensions (DWP) benefits and state pension will rise by next year has been confirmed. Labour Party Chancellor Rachel Reeves said today that benefits including Universal Credit, Personal Independence Payment (PIP), and Pension Credit will rise in line with the Consumer Price Index (CPI) for September.

This means some benefits will go up by 1.7%. Today's move was expected, as Reeves previously said back in 2023, that September's inflation figure would uprate benefits under a Labour government as it was "tradition". She said: "If you pick and choose from year to year which inflation number is the cheapest thing to do, then what you see is the gradual erosion of people's incomes."

The benefits that are legally required to rise with inflation are Personal Independence Payment (PIP), Disability Living Allowance, Attendance Allowance, Incapacity Benefit, Severe Disablement Allowance, Industrial Injuries Benefit, Carer's Allowance,Additional State Pension and Guardian's Allowance.

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Daniel McAfee, Head of Legal Operations at Lawhive and a UK lawyer, said of a new crackdown from the DWP on anti-fraud: “The new legislation is likely to increase the number of welfare fraud investigations and prosecutions. This will lead to a rise in the demand for legal advice, both for claimants and organisations involved in the administration of welfare benefits. Legal professionals may need to assist clients with compliance and defence strategies, particularly as the legislation may introduce new processes or enforcement mechanisms that require careful navigation.

“The Equality Act 2010 plays a crucial role in ensuring that new welfare fraud legislation does not disproportionately affect vulnerable groups, such as those with disabilities or mental health challenges. Under the Act, public bodies, including the DWP, must make reasonable adjustments to prevent indirect discrimination. For example, claimants with learning disabilities may require clearer communication or extended deadlines during investigations.

"The Act’s Public Sector Equality Duty (PSED) also requires the government to consider how its policies impact vulnerable groups, meaning that investigations must be conducted in a fair and non-discriminatory manner. Claimants who feel they have been unfairly treated could challenge investigations on the grounds of indirect discrimination, for instance, if in-person interview requirements don’t account for mobility issues.

I"n short, legal professionals can help ensure that the government’s approach to welfare fraud respects the rights of vulnerable claimants, ensuring investigations are proportionate and compliant with the Equality Act 2010.”