Potential Freeze on Personal Independence Payments (PIP) in 2026
A proposed freeze on Personal Independence Payments (PIP) in 2026 could result in significant financial losses for some claimants, potentially exceeding £350 annually, according to recent analyses. The Government is set to announce over £6 billion in welfare savings this week, which may include a decision to halt the usual inflation-based increase for PIP starting in April of next year.
Typically, PIP payments are adjusted each year in accordance with the Consumer Prices Index (CPI) inflation figure from the previous September. These payments are designed to assist individuals who experience long-term health conditions or disabilities that impede their ability to perform essential daily tasks or navigate their environment.
Impact of Potential Freeze on Claimants
The implications of freezing PIP during a period of high inflation, projected to surpass the Bank of England’s target of 2 percent, would mean that claimants could receive less financial support in real terms than they normally would. PIP rates vary based on an individual’s specific needs and consist of two components: daily living and mobility.
- Currently, an individual receiving the enhanced rate for both components can get a total of £184.30 per week, which breaks down to £108.55 for daily living and £75.75 for mobility.
- From April this year, these rates are set to increase to £187.45 weekly, with £110.40 for daily living and £77.05 for mobility, reflecting last year’s inflation rate of 1.7 percent.
How PIP Rates are Determined
When an individual is evaluated for PIP, a health professional assesses their capacity to perform daily living and mobility activities, assigning scores out of a maximum of 12 for each component. If a person scores between 8 and 11, they qualify for the standard rate, while a score of 12 qualifies them for the higher rate. For example, Citizens Advice outlines that a person who can walk with a stick up to 50 meters but cannot repeat this due to exhaustion or pain would score 12 in the mobility segment, thus qualifying for the higher mobility component of PIP.
Based on current projections, payments are expected to rise by an additional 3.7 percent—the Bank’s forecast for inflation in the third quarter of 2025—from April 2026. This increase could elevate the higher daily living rate to £114.50 and the mobility rate to £79.90. Overall, claimants could potentially miss out on an increase of £361.40 per year if the Department for Work and Pensions (DWP) proceeds with a freeze. Likewise, individuals on the standard rate for both components may see a loss of £200.20 annually in real terms, assuming they would have otherwise benefited from a 3.7 percent uplift.
This discussion arises as Work and Pensions Secretary Liz Kendall prepares to outline measures aimed at controlling the substantial growth in health-related benefits. In January, Kendall emphasized the necessity of steering the UK welfare budget onto a “more sustainable course.” She stated, “The way to do this is to get more people into work through the reforms that we’re implementing in our Jobcentres and through a reform of the benefit system. We will also be introducing our green paper on reforming sickness and disability benefits in the spring.”
As of October last year, the number of people claiming PIP in England and Wales has surged to 3.6 million, highlighting the significant increase in the benefits bill since the onset of the Covid pandemic. Other anticipated reforms may include £5 billion in savings by tightening eligibility criteria for PIP, as reported by ITV News.
PIP is available to individuals with a wide range of conditions, from skin disorders to mobility challenges. Notably, the number of claimants with psychiatric conditions has risen since the pandemic. Additionally, PIP can be claimed alongside other benefits and is accessible to those who are employed.
Historically, freezing benefits has been a strategy employed by governments to reduce the welfare expenditure. From 2013-14 to 2019-20, the value of most benefits was adjusted by rates lower than inflation under both the coalition and Conservative administrations.
Furthermore, there are discussions regarding potential increases to the basic rate of Universal Credit for those actively seeking work or currently employed, while simultaneously reducing the rate for individuals deemed unfit to work. Both Kendall and Chancellor Rachel Reeves have indicated that cuts to benefits might be considered for unemployed young people who are not actively job-seeking. In a recent interview with ITV News, Kendall remarked that too many individuals were “taking the mickey” by claiming benefits when they should be engaged in work.
The DWP has been approached for comments regarding these developments.
