There is good financial news for millions of people across the UK claiming disability benefits from the Department for Work and Pensions (DWP) as April will see the fruition of the 10.1 per cent pay rise promised in the Chancellor's Autumn Statement. What's more, it will be completely tax-free.
State Pension and most benefits will rise in April as part of the annual uprating, which means people in receipt of Personal Independence Payment (PIP), Disability Living Allowance (DLA) and, if you live in Scotland, Adult Disability Payment (ADP), and Child Disability Payment could receive annual payments of between £1,398 and £8,983 over the 2023/24 financial year, according to Nottinghamshire Live sister publication Daily Record.
These payments are completely tax-free, which is important because the standard Personal Tax Allowance threshold has been frozen at £12,570 for the new financial year starting on April 6. If the disability payments were subject to income tax rules, it would leave claimants with just £3,587 left of their allowance. For many workers claiming disability benefits (55%), this would have an impact on their take-home pay.
