DWP issues PIP update amid major benefits shake-up affecting millions

The Department for Work and Pensions (DWP) is currently in the process of moving over two million individuals from older benefits systems to Universal Credit in a major shake-up that has raised questions about the fate of Personal Independence Payment (PIP). PIP is a benefit aimed at assisting individuals who need extra support due to a health condition, disability, or mental health issue. It benefits nearly 3.4 million UK residents and can provide up to £737.20 every four weeks, with the specific amount based on how the individual’s condition affects their daily activities.

The DWP has now clarified which benefits will be shifted to Universal Credit, with PIP notably excluded from the list. The six benefits set to be replaced by Universal Credit are Working Tax Credit, Child Tax Credit, Income-based Jobseeker’s Allowance (JSA), Income Support, Income-related Employment and Support Allowance (ESA), and Housing Benefit. According to GOV.UK, “Other benefits, such as Personal Independence Payment (PIP), will stay the same.” This means that current PIP claimants will not undergo a transition to Universal Credit as part of the ongoing “managed migration” process, which is expected to reach all affected individuals by the end of December 2025.

For those wondering about the value of PIP, it is typically paid every four weeks, unless the recipient is terminally ill, in which case weekly payments can be arranged. PIP consists of two components – the daily living rate and the mobility rate. The rates for these components are as follows: Daily living – Lower rate: £72.65, Higher rate: £108.55; Mobility – Lower rate: £28.70, Higher rate: £75.75.

Eligibility for PIP is determined through an assessment by a healthcare professional to assess how the individual’s condition impacts their daily life. The daily living component of PIP may be applicable if assistance is required with activities such as eating, bathing, dressing, or communicating. Meanwhile, the mobility component of PIP may be granted if help is needed with moving around, following routes, or leaving the home. Generally, individuals aged 16 or over can make a claim for PIP, and existing PIP recipients reaching state pension age will usually continue to receive payments.

For those already receiving PIP, there is typically a reassessment period ranging from one to ten years, except for those under special rules due to terminal illness, who can receive expedited payments within two weeks. Overall, PIP remains unaffected by the current benefits shake-up involving the transition to Universal Credit, offering continued financial support to those in need.