The Department for Work and Pensions (DWP) has confirmed that Personal Independence Payment (PIP) rates will rise by 3.5% from April 2027, with the enhanced daily living component increasing to £118.60 a week.
The annual benefits review announced that working-age and disability benefits, including attendance allowance, will increase by 3.5% from 12 April 2027. PIP is a UK tax-free, non-means-tested welfare benefit designed to help individuals with extra living or mobility costs arising from a long-term physical or mental health condition or disability.
According to figures released by the DWP, 4.09 million people were entitled to claim PIP as of 31 July 2026.
New PIP rates for 2027-28
The updated rates, which take effect next April, are as follows:
- Daily living component – enhanced: £118.60 (up from £114.60)
- Daily living component – standard: £79.40 (up from £76.70)
- Mobility component – enhanced: £82.80 (up from £80.00)
- Mobility component – standard: £31.35 (up from £30.30)
State pension and other benefits
In a statement to Parliament, Pat McFadden, Work and Pensions Secretary of State, said: "The new rates will apply in the tax year 2027-28 and will mainly come into effect from April 12 2027."
McFadden also announced that the basic and full rate of the new state pensions will increase by 3.9%, in line with average weekly earnings growth in the year to May-July 2026. The full annual rate of the new state pension will rise by around £490, while the basic state pension will increase by around £375.
The standard minimum guarantee in pension credit will also rise by 3.9%, to £247.30 a week for a single pensioner and £377.40 a week for a couple. Other state pension and benefit rates covered by the statutory review will increase by 3.5%, in line with the consumer prices index in the year to September 2026.
Disability benefits review
A Government-commissioned review into the costs and operation of the disability benefits system, led by social security minister Sir Stephen Timms, is set to be published later this year. Its interim findings in July branded the system "no longer fit for purpose."
The Institute for Fiscal Studies (IFS) report on reforming PIP examined replacing cash with 'in kind' support, noting: "A particular advantage of cash is that it enables claimants to choose how to spend the benefit (and they could, for example, spend it on social care or healthcare)."
Ministers are expected to outline their response to the Timms review and the Milburn review into getting more Neets into work in the coming weeks.
