Millions of disability claimants across England are set for a 10.1% payment rise from the Department for Work and Pensions this year, all of which will be totally tax-free.
State Pension and most other benefits will rise from April onwards, as part of the DWP's annual uprating - which means that those in receipt of PIP, Adult Disability Payment (ADP), Disability Living Allowance (DLA) and Child Disability Payment could cash in on annual payments between £1,398 and £8,983 across the 2023/24 financial year.
If the Personal Tax Allowance had not been frozen at £12,570 for the new financial year - April 6 onward - and if disability payments were subject to income taxation, claimants would only be left with £3,587 for their annual allowance.
Read more: Tips to prepare for DWP PIP assessments carried out over the phone, in-person or on video
And The Record reports that for many workers claiming disability benefits (55 per cent), this would have an impact on their take-home pay. However, State Pension income is taxable but usually paid without any tax being deducted and you only pay Income Tax once your total annual income is above your Personal Allowance threshold (£12,570).
The uprating in April is expected to push a further 500,000 older people on State Pension into the tax net, according to former pensions minister, Sir Steve Webb. But that’s not the case for people claiming any of the disability benefits.
At present, claimants can receive between £97.80 and £627.60 every payment period. This means that from April, there will be a monthly increase of up to £63.40 on the way for some of the country’s most vulnerable households, however, it’s important to be aware that those figures represent the minimum and maximum award rates possible.
A single award for the lower rate mobility only is currently worth £97.80 every four week pay period and the highest award for both the daily living or care and mobility components is worth £627.60. People over State Pension age with a health condition or disability will also see their weekly payments increase to either £101.75 for the higher rate and £68.10 for the lower rate from April.
There is no mobility component for Attendance Allowance, only daily care, so this means monthly payments will either be £272.40 or £407. The payment rate changes have been published by DWP on GOV.UK here and will come into effect on April 10, 2023.
Below are all the disability payment rate changes for 2023 to 2024.
Attendance Allowance
Weekly:
- Higher rate: £101.75 (from £92.40)
- Lower rate: £68.10 (from £61.85)
Pay period (every four weeks):
- Higher rate: £407
- Lower rate: ££272.40
Annual payments (from April 2023-2024):
- Higher rate: £5,291
- Lower rate: £3,541.20
DLA and Child Disability Payment
Care Component
Weekly:
- Highest: £101.75 (from £92.40)
- Middle: £68.10 (from £61.85)
- Lowest: £26.90 (from £24.45)
Pay period (four weeks):
- Highest: £407
- Middle: £272.40
- Lowest: £107.60
Mobility component
Weekly:
- Higher: £71.00 (from £64.50)
- Lower: £26.90 (from £24.45)
Pay period (every four weeks):
- Higher: £284
- Lower: £107.60
PIP and Adult Disability payment
Daily Living Component
Weekly:
- Enhanced: £101.75 (from £92.40)
- Standard: £68.10 (from £61.85)
Pay period (every four weeks):
- Enhanced: £407
- Lower: £272.40
Annual payments (from April 2023-2024):
- Enhanced: £5,291
- Lower: £3,541.20
Mobility Component
- Enhanced: £71.00 (from £64.50)
- Standard: £26.90 (from £24.45)
Pay period (every four weeks):
- Enhanced: £284
- Lower: £107.60
Annual payments (from April 2023-2024):
- Enhanced: £3,692
- Lower: £1,398.80
New £150 disability cost of living payment 2023
Over six million people across the UK on non-means-tested disability benefits will receive a further £150 disability cost of living payment this summer.
This includes everyone eligible for:
- Disability Living Allowance
- Personal Independence Payment
- Adult Disability Payment
- Child Disability Payment
- Attendance Allowance
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
DWP will provide further details on timing of the payments and eligibility dates in due course. This payment will be tax-free and will not have any impact on existing benefit awards.
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Read next:
- DWP clarifies what happens to your PIP payments if you go into hospital
How to appeal PIP decision if your claim is rejected by DWP and you disagree
All the Child Benefit changes you must report to HMRC or risk missing out on payments
16 DWP and HMRC benefits that could give you extra money - check which ones you can claim
18 things Universal Credit claimants must report to DWP or face losing benefits
