People living in England, Scotland and Wales who claim disability benefits from the Department for Work & Pensions and Social Security Scotland are eligible for a tax-free pay rise of 10.1 per cent later this year. The annual uprating means most benefits and the state pension will go up in April.
Those claiming Personal Independence Payment, Adult Disability Payment, Disability Living Allowance and Child Disability Payment could see payments of between £1,398 and £8,983 over the 2023/24 financial year which would be completely tax free. As the standard Personal Tax Allowance threshold has been frozen at £12,570 for the new financial year, the new tax free allowance will provide some much needed financial relief to those who claim disability benefits.
If the disability payments were subject to income tax rules, it would leave claimants with just £3,587 left of their allowance, Lancs.LIve reports. Those receiving the Disability Living Allowance, Child Disability Payments, Personal Independence Payments or Adult Disability Payment are among those affected.