DWP Plans 3.8% Inflation-Linked PIP Increase Amid Eligibility Review

The Department for Work and Pensions (DWP) is currently reviewing proposed changes to the eligibility criteria for Personal Independence Payment (PIP), with no alterations to claims or eligibility expected before the review concludes in autumn 2025. Minister Sir Stephen Timms has assured that there will be no changes to PIP eligibility or the Motability scheme until this review is complete, despite discussions about potential reforms to reduce costs. Meanwhile, PIP payments will continue to increase annually in line with inflation, with a 3.8% uplift planned for the 2026/27 financial year, raising the highest weekly rates for daily living and mobility components. Alongside PIP, the government is implementing broad updates to Universal Credit (UC) and PIP starting in 2025, aiming to simplify processes, increase financial support, and better accommodate claimants with mental health conditions and disabilities. These updates include expanded eligibility thresholds, more personalized work commitments, increased childcare support, and eased obligations for carers, reflecting a focus on fairness and inclusivity. The proposed PIP changes remain paused while the comprehensive review, involving disabled individuals and stakeholders, is underway to ensure fair outcomes for claimants.