The DWP is set to announce the new payment rates for State Pensions and benefits for the 2026/27 financial year just prior to the Autumn Budget on 26 November
The Department for Work and Pensions (DWP) is poised to reveal the new payment rates for State Pensions and benefits for the 2026/27 financial year just before the Autumn Budget on 26 November. The DWP recently disclosed that plans to overhaul Personal Independence Payment (PIP) have been delayed until a ‘comprehensive review’ into the current assessment process wraps up next year.
However, the DWP has also confirmed that the disability benefit will continue to rise annually in line with the September inflation rate. This means payments for over 3.8 million PIP claimants are projected to increase by 3.8 per cent.
A boost of 3.8 per cent would see individuals receiving the highest awards of the daily living and mobility components climb from £187.45 per week to £194.55. The new financial year kicks off on Monday, 6 April 2026.
This is when all benefits and the State Pension will go up, but the actual amounts will be announced by the DWP, usually after the Autumn Budget. That being said, it is feasible to work out the potential payment rates for all eight mixed award types of PIP based on the September CPI.
This can act as a guide to help plan household budgets and factor in the uprating, according to the Daily Record.
PIP payment rate forecast 2026/27
PIP consists of two components – daily living and mobility. Under a 3.8 per cent CPI uprating, PIP would be paid at the following weekly amounts:
Daily living
- Standard rate: £76.70 (from £73.90)
- Enhanced rate: £114.60 (from £110.40)
Mobility
- Standard rate: £30.30 (from £29.20)
- Enhanced rate: £79.95 (from £77.05)
PIP payment combinations 2026/27
People on PIP could be awarded the lowest rate of one or both parts, the highest rate of one or both parts, or a mixed award of the lower or higher rates of each component.
The DWP will issue letters to all claimants before April detailing their new payment rates.
Single-component
You may be awarded the lower or higher daily living or mobility component:
- Standard daily living only – £76.70 per week, £306.80 per pay period
- Enhanced daily living only – £114.60 per week, £458.40 per pay period
- Standard mobility only – £30.30 per week, £121.20 per pay period
- Enhanced mobility only – £79.95 per week, £319.80 per pay period
Lower rate for daily living and mobility
If you are on the lower rates of both components, your new payments are forecast to be:
- Standard daily living and standard mobility – £107 per week, £428 per pay period
Higher rate for daily living and mobility
If you are on the higher rates of both components, your new payments are forecast to be:
- Enhanced daily living and enhanced mobility – £194.55 per week, £778.20 per pay period
Lower rate of one component and higher rate of the other
If you are on the lower rate of one component and the higher rate of the other, your new payments are forecast to be:
- Standard daily living and enhanced mobility – £156.65 per week, £626.60 per pay period
- Enhanced daily living and standard mobility – £144.90 per week, £579.60 per pay period
The DWP will publish the new payment rates and allowances for all benefits before the end of this year
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