PIP claim: Personal Independence Payment amount will rise – when to expect increase | Personal Finance | Finance


PIP, formally known as Personal Independence Payments, provides financial support to individuals with long term ill-health or a disability. The benefit is crucial for individuals who may need additional help paying for their care, as well as other day-to-day costs which may arise. PIP can be claimed by people whether they are in work or not, and the payment is tax-free.

The benefit is overseen by the Department for Work and Pensions (DWP), responsible for ensuring those eligible receive the amount to which they are entitled. 

COVID-19 has meant 2020 has been a challenging time for many, but as the year comes to an end, people will be looking ahead to the future.

With this, is likely to come questions about whether benefits will increase, and what the sum will be.

Fortunately, the government has provided important updates on the payments, offering clarity for those who are making a claim. 

READ MORE: State Pension age could be means tested – proposals detailed

Meanwhile, the enhanced daily living component is set to increase from £89.15 to £89.60.

For those who are claiming the mobility part of PIP, there are also increases to make note of.

The standard mobility component is currently set at £23.60, but will increase to £23.70 for the 2021/22 year.

There is also an increase for the enhanced mobility component for the new year, from £62.25 this year, to £62.55.

In April 2020, PIP amounts were increased, included in the 1.7 percent rise given to social security payouts.

Similarly, Britons can expect their benefit payment to increase in April 2021 – the start of the new tax year. 

To be eligible to receive PIP, there are a number of criteria to bear in mind going forward.

People must be aged 16 or over, and usually have not reached state pension age to claim.

They must also have a health condition or disability which has created difficulties with daily living or getting around for at least three months.

In addition, a person must expect these difficulties to continue for at least nine months.

Finally, a person usually needs to have lived in England, Scotland or Wales for at least two of the last three years, and be in one of these countries when applying. 

Whether a person receives one or both components of PIP is dependent on how their condition affects them, rather than the condition itself. 

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