What is PIP, who is eligible, and how much is it going up by?

PIP payments will see an increase of 10.1% for next year’s payments (Picture: Getty)

Many Britons are struggling amidst the ongoing cost of living crisis – and purse strings will be pulled tighter as the UK officially enters a recession.

The financial crisis has affected everything from businesses to households, with disabled citizens being one of the worst-hit demographics.

In a bid to help vulnerable people, Chancellor of the Exchequer Jeremy Hunt announced in the Autumn Statement that he would increase benefits in line with the rate of inflation – including a 10.1% increase for PIP.

But who is eligible for the financial aid, and how much are payments rising by?

Here is everything you need to know.

What is PIP?

Personal Independence Payment (PIP) provides financial help to people aged 16 or over if they are suffering from long-term physical disability or mental health condition.

You can get PIP even if you’re working, have savings or are getting most other benefits.

Who is eligible for PIP?

You can get PIP if all of the following apply to you:

You’re 16 or overYou have a long-term physical or mental health condition or disabilityYou have difficulty doing certain everyday tasks or getting aroundYou expect the difficulties to last for at least 12 months from when they started

PIP is divided into two parts – Daily living part (if you need help with everyday tasks) and Mobility part (if you need help with getting around).

The daily living part includes:

EatingDrinking or preparing foodWashingBathing and using the toiletDressing and undressingReading and communicatingManaging medicines or treatmentsMaking money decisionsSocialising and being around other people

The mobility part includes – working out a route and following it, physically moving around while leaving home. 

However, the payment depends on the amount of difficulty one finds doing everyday tasks and getting around.

While it is also not necessary to be physically disabled to be eligible for the mobility part, one can fall into the category even if an individual faces difficulty getting around due to a cognitive or mental health condition, such as chronic anxiety.

How much will the rates rise in 2023?

The daily living component of the payment has a lower weekly rate of £61.85, which will be enhanced to £68.10.

The higher rate currently stands at £92.40, soon to go up to £101.75. 

PIP is divided into two parts – daily living and mobility (Picture: Getty Images)

On the other hand, PIP’s mobility component is £24.45 for the lower weekly rate and £64.50 for the higher rate, which again will be raised to £26.95 and £71.05 respectively. 

Considering the increase in rate by 10.1%, the claimants can expect the payments to rise from £156.90 a week to £172.75 a week from April 2023. 

The PIP is tax-free and the payments are usually made every four weeks. 

While giving the Autumn Statement in parliament last week, Jeremy Hunt said: ‘Today I also commit to uprate such benefits by inflation with an increase of 10.1 per cent, that is an expensive commitment costing £11billion.

‘But it means 10 million working-age families will see a much-needed increase next year, which speaks to our priorities as a Government and our priorities as a nation.’

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PIP has increased as part of the Autumn Statement.