The Personal Independence Payment (PIP) is a vital benefit designed to help individuals with long-term health conditions or disabilities manage extra costs.
With significant DWP changes coming in 2025, it’s important for claimants to stay informed about how these updates could affect their payments, eligibility, and access to support.
Here are the six key PIP changes to be aware of in 2025.
1. New Year Payment Date Changes
Due to the New Year bank holiday, PIP payments scheduled for Wednesday, January 1, 2025, will be made one day earlier, on December 31, 2024.
- Payments due on December 31 will be processed as usual.
- In Scotland, payments scheduled for January 2 will also be issued on December 31 instead.
Normal payment cycles will resume from Thursday, January 2, 2025.
2. Motability £750 Payment Scrapped
The £750 New Vehicle Payment under the Motability Scheme will be scrapped on January 3, 2025.
- This payment was introduced to help with the cost of getting a new Motability vehicle amid supply shortages.
- The £100 New Product Payment for scooters and powered wheelchairs will also end on the same date.
- To still qualify for these payments, you must order your vehicle before January 3, 2025.
Who Can Apply for a Motability Vehicle?
To qualify, you must be receiving one of the following at the higher mobility rate:
- PIP Mobility Component
- DLA Mobility Component
- Adult Disability Payment (Scotland)
- Armed Forces Independence Payment
- War Pensioners’ Mobility Supplement
3. DWP Reforms for Disability Benefits
The Labour Government is proposing an overhaul of the health and disability benefits system through its Get Britain Working white paper.
- A new job and careers service will be introduced to help disabled people back into work.
- The DWP is planning a consultation in Spring 2025 to gather public feedback.
- The previously proposed PIP reform plan, which suggested replacing cash payments with vouchers, is not being pursued by Labour.
Further details will be announced later in 2025.
4. PIP Payment Rates Increasing
From April 2025, PIP payment rates will rise by 1.7% in line with inflation.
| PIP Component | 2024 Rate (Weekly) | 2025 Rate (Weekly) | Increase |
|---|---|---|---|
| Daily Living (Lower Rate) | £72.65 | £73.90 | +£1.25 |
| Daily Living (Higher Rate) | £108.55 | £110.40 | +£1.85 |
| Mobility (Lower Rate) | £28.70 | £29.20 | +£0.50 |
| Mobility (Higher Rate) | £75.75 | £77.05 | +£1.30 |
For those on the highest rate for both components, their four-weekly payment will increase from £737.20 to £749.80.
5. PIP Claimant Spending Study
The DWP is conducting new research to understand how PIP recipients use their benefits.
- The study will focus on whether PIP payments sufficiently cover disability-related costs.
- The findings will be published in Summer 2025.
- The government will use the data to inform future PIP policies and reforms.
This does not mean payments will change immediately, but it could influence long-term policy decisions.
6. NHS Back-to-Work Funding
The government is investing £3.5 million into 17 NHS regions to improve treatment for musculoskeletal conditions.
- Around 1.1 million PIP recipients claim the benefit due to musculoskeletal conditions.
- These conditions are the second most common reason for long-term unemployment, after mental health issues.
- The funding aims to help people manage their conditions and support them in returning to work.
The six PIP changes for 2025 will impact thousands of claimants, with payment increases, benefit reforms, and adjustments to the Motability Scheme being key changes to watch.
Staying informed and checking your eligibility can help ensure you continue receiving the financial support you need.
For updates, visit GOV.UK or contact DWP directly.
