The annual uprating for disability benefits is based on the September CPI inflation rate. The Office for National Statistics (ONS) announced earlier this week that Consumer Prices Index (CPI) inflation rose to 2.2 per cent in July, up from 2.
0 per cent in June. This figure is one that millions of people claiming disability benefits such as Personal Independence Payment (PIP), Attendance Allowance and Disability Living Allowance (DLA) should start watching as the September inflation rate will determine the annual payment uprating. That figure is due to be published in mid-October and the State Pension and benefits uprating for the 2025/26 financial year will be confirmed by Chancellor Rachel Reeves during the Autumn Budget on October 30.
The uprating for PIP is also expected to be applied to people in Scotland on Adult or Child Disability Payment to avoid a two-tier benefits system. Benefits increased by 6.7 per cent in April this year, but look set for a smaller increase for the 2025/26 financial year.
However, even an uprating of 2.2 per cent would give those on PIP, Adult Disability Payment or DLA payments of up to £753 each month. The first thing that needs to be understood is that this figure is based on the July CPI - the September CPI is the one that counts and that number could go up or down.
The second thing to be aware of is that by law, disability benefits must rise each year with the CPI figure. That also includes Carer’s Allowance and any other disability benef.