State Pension and Personal Independence Payment (PIP) will increase from next month, meaning a pay rise of up to £138.20 a month for those claiming both from the Department for Work and Pensions (DWP). At the end of January this year, 3.25 million Brits were on PIP, and nearly half a million of those were also on the State Pension.
PIP supports people with a long term physical or mental health condition, or disability, and currently provides between £24.45 and £156.90 per week – which amounts to between £97.80 and £627.60 per four-week payment period. But from April, this will rise to between £107.60 and £691 per month.
The New State Pension is currently worth £185.15 each week and the Old Basic State Pension amounts to £141.85 a week. But from April, these payments will also rise, to £203.85 and £156.20 respectively, the Daily Record reports.
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The increases mean that those claiming the full New State Pension and the highest award of PIP will receive £1,506.40 every four weeks from next month. The rise of 10.1 per cent for most benefits and the State Pension is designed to help people cope with high inflation amid the cost of living crisis.
PIP and the State Pension age
When someone reaches State Pension age – currently 66 – they can no longer make a new claim for PIP or Disability Living Allowance. However, if a person is already claiming the benefit, they can continue to receive it until the award period ends, at which point it will be reviewed in the normal process.
Those who reach State Pension age who have previously claimed working age disability benefits but are not any more may be able to reclaim it after 66 – as long as it is for the same health condition they initially received it for and the claim ended less than 12 months before reaching State Pension age.
Those over State Pension age who have a health condition, long-term illness or disability, and who are not able to claim PIP, may be eligible for Attendance Allowance. This benefit is worth either £61.85 or £92.40 per week – more information can be found here.
Potential income for older people claiming PIP from April 2023
These estimations are based on the rates from April onwards of the Full New State Pension and the maximum PIP award.
New State Pension: £203.85 per week x 52 = £10,600.20 per year
PIP or ADP: £172.75 per week x 52 = £8,983 per year
Total combined income payments from April
Per week: £376.60
Per payment period (four weeks): £1,506.40
Per year: £19,583.20
New State Pension payment rates from April
Weekly rate: £203.85, an increase of £18.70 from £185.15
Four-weekly rate: £815.40, an increase of £74.80 from £740.60
Basic State Pension payment rates from April
Weekly rate: £156.20, an increase of £14.35 from £141.85
Four-weekly rate: £624.80, an increase of £57.40 from £567.40
PIP payment rates from April
Daily Living Component
Enhanced: £101.75 (from £92.40)
Standard: £68.10 (from £61.85)
Mobility Component
Enhanced: £71.00 (from £64.50)
Standard: £26.90 (from £24.45)
Cost of living payments 2023/24
Pensioner households who receive Pension Credit may also qualify for the DWP's £900 means-tested cost of living payment, which will be split across three instalments, with the first £301 sum coming this spring. Those on a disability benefit may also get the £150 disability cost of living support and pensioners will receive an extra payment of up to £300 in addition to their Winter Fuel Payment.
It means that older people could potentially be eligible for up to £1,350 over the next financial year.
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