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UK Confirms Inflation Uprating for PIP, Projecting £336 Annual Boost at Top Rate

A review of proposed disability benefit cuts leaves future eligibility uncertain.

Overview

  • The Department for Work and Pensions says Personal Independence Payment will continue to be uprated each year by the September Consumer Prices Index figure.
  • Using the latest ONS reading of 3.8% for August as the guide for September, the maximum PIP award would rise from £749.80 to £778.20 every four weeks, adding £28.40 per period or £336 a year.
  • Inflation held at 3.8% in August as petrol prices rose, keeping pressure on household budgets, according to the ONS.
  • The government is pursuing welfare changes, with PIP reforms for new claimants deferred for at least a year pending an independent review and minister Pat McFadden saying he is not ruling out cuts.
  • Political and economic reactions diverge, with Chancellor Rachel Reeves highlighting support measures as Conservatives warn about borrowing costs and the CBI suggesting interest rates may remain on hold.