Categories
Finance

PIP rates will rise by 10.1 percent next year


In his Autumn Budget earlier today, the Chancellor outlined plans to increase the payment rate of benefits by 10.1 percent. This is in line with the Consumer Price Index (CPI) rate of inflation in the year to September 2022 and will be implemented in April 2023. Among the benefits which are legally required to increase by inflation are Personal Independence Payment (PIP).

Mr Hunt’s intervention also included a new £150 cost of living payment designed to assist disabled people which will be handed out next year.

Speaking to MPs in Parliament, he said: “Today I also commit to uprate such benefits by inflation with an increase of 10.1 percent, that is an expensive commitment costing £11billion.

“But it means 10 million working-age families will see a much-needed increase next year.”

On top of this, the Chancellor outlined the return of the £150 cost of living payment for disabled Britons which was initially introduced last year.

READ MORE: Britons urged to consider ‘simple’ boiler hack that could cut energy bills by £112 a year

How much is PIP?

The disability benefit payment is separated into parts: a daily living and mobility component which are paid at either a higher or lower rate depending on the severity of the claimant’s condition.

The daily living component of the payment has a lower weekly rate of £61.85 and a higher rate stands at £92.40.

In comparison, PIP’s mobility component is £24.45 for the lower weekly rate and £64.50 for the higher rate.

This means that someone in receipt of the higher rate of both components would be eligible for £627.60 a month.

DON’T MISS

How much will PIP be?

Taking into account the 10.1 percent rate rise, PIP claimants will receive a sizable boost come April of next year.

If they get the maximum amount, claimants can expect payments to rise from £156.90 a week to £172.75 a week from April 2023, according to reports. This represents a rise of £15.85 a week.

Organisations, such as Disability Rights UK, have questioned whether this latest wave of support will be enough to assist disabled people, many of whom claim PIP.

The organisation’s CEO Kamran Mallick explained: “The Government is committing to investment in public services and to increase social care and education funding.

READ MORE: Attendance Allowance: 6 myths that stop millions of pensioners claiming up to £370 a month  

“But it’s not clear that those increases will do anything other than leaving us running to stand still.

“We do not think they will be anywhere near enough to benefit the huge numbers of Disabled children and adults currently being denied services.”

Citing the ongoing cost of living crisis, Mr Mallick cited how disabled people have always had to pay more to get by and the current rate of benefit payments have failed to “meet this gap”.

He added: “Before the cost of living crisis, the disability living gap meant that disabled people were paying on average £583 per month more on living expenses.



Source link

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.