Millions of people across Scotland, England and Wales claiming disability benefits from the Department for Work and Pensions (DWP) and Social Security Scotland are set for a 10.1 per cent pay rise this year which will be completely tax-free.
State Pension and most benefits will rise in April as part of the annual uprating. This means people in receipt of Personal Independence Payment (PIP), Adult Disability Payment (ADP), Disability Living Allowance (DLA) and Child Disability Payment could receive annual payments of between £1,398 and £8,983 over the 2023/24 financial year - completely tax-free.
This is important because the standard Personal Tax Allowance threshold has been frozen at £12,570 for the new financial year starting on April 6 and 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.
