The Department for Work and Pensions (DWP) has published its proposed benefit and pension rates for 2027 to 2028, confirming that several payments will increase from April next year in line with inflation and the cost of living.
The new State Pension is set to rise from £241.30 to £250.70 per week. The annual increase follows the triple lock policy, under which payments rise based on average earnings growth, inflation, or a minimum increase of 2.5%, whichever is highest.
PIP and other key benefit changes
Personal Independence Payment (PIP) rates are also set to rise. More than 4 million people in England and Wales are entitled to claim the payment, with the enhanced daily living component increasing from £114.60 to £118.60.
Carer's Allowance will rise from £86.45 to £89.50, while Attendance Allowance's higher rate moves from £114.60 to £118.60 and its lower rate from £79.70 to £79.40.
Full list of proposed rates for 2027-28
The DWP has set out the full schedule of proposed rates, covering a range of benefits and statutory payments.
- Bereavement benefit: Widowed Parent's Allowance rises from £156.65 to £162.15.
- Disability Living Allowance care component: highest from £144.70 to £118.60, middle from £76.70 to £79.40, lowest from £30.30 to £31.35.
- Disability Living Allowance mobility component: higher from £80.00 to £82.80, lower from £30.30 to £31.35.
- Housing Benefit: single and 25 or over from £95.55 to £98.90, lone parent and 18 or over from £95.55 to £98.90, couple (one or both 18 or over) from £150.15 to £155.40.
- Pension Credit: single from £238.00 to £247.30, couple from £363.25 to £377.40.
- PIP daily living component: enhanced from £114.60 to £118.60, standard from £76.70 to £79.40.
- PIP mobility component: enhanced from £80.00 to £82.80, standard from £30.30 to £31.35.
- Severe Disablement Allowance: basic rate from £103.85 to £107.50.
- Old State Pension: Category A or B from £184.90 to £192.10, Category B (lower) from £110.75 to £115.05, Category C or D from £110.75 to £115.05.
- Statutory Maternity Pay: earnings threshold from £129.00 to £133.00, standard rate from £194.32 to £201.11.
- Statutory Paternity Pay: earnings threshold from £129.00 to £133.00, standard rate from £194.32 to £201.11.
- Statutory Shared Parental Pay: earnings threshold from £129.00 to £133.00, standard rate from £194.32 to £201.11.
- Statutory Parental Bereavement Pay: earnings threshold from £129.00 to £133.00, standard rate from £194.32 to £201.11.
- Statutory Sick Pay: standard rate from £123.25 to £127.55.
Universal Credit changes
Universal Credit standard allowances are also set to increase. For a single person under 25, the rate rises from £338.58 to £353.87, and for a single person 25 and over from £424.90 to £443.21. A couple under 25 will see the rate rise from £528.34 to £551.11, while a couple with one or both over 25 will see it increase from £666.97 to £695.71.
