The number that usually decides how much most benefits go up next year is in, and it’s higher than many expected.
Inflation rose to 3.5% in September, its highest level in almost a year, driven by soaring petrol and diesel prices. That’s the figure the government normally uses to raise benefits from April, which means PIP, Carer’s Allowance, Attendance Allowance and many other payments are on track for a 3.5% increase in April 2027.
The official rates won’t be confirmed until the Budget on October 28. But here’s what we know now, who’s guaranteed a rise, and what it could mean in pounds.
What September’s inflation figure showed
The Office for National Statistics reported on October 21 that prices rose 3.5% in the year to September, up from 3.1% in August.
The biggest driver was the cost of filling up. Motor fuel prices were almost 30% higher than a year earlier. Petrol averaged about 169.5p a litre and diesel about 192.5p, the highest in more than four years. Air and sea fares also pushed the figure up.
There was some relief at the supermarket. Food inflation stayed at just 1.3%, and food prices actually dipped slightly between August and September.
“Inflation climbed notably in September to its highest annual rate in almost a year,” said ONS chief economist Grant Fitzner.
Which benefits are guaranteed to go up
Not every benefit is treated the same way.
Disability and carer benefits must rise with prices. By law, these have to keep up with inflation, so a rise in line with September’s 3.5% is expected. That includes:
- Personal Independence Payment (PIP)
- Attendance Allowance
- Disability Living Allowance
- Carer’s Allowance
Most other benefits are up to the government. For working-age benefits like Universal Credit, the Work and Pensions Secretary decides each year. In practice, the government has usually used the September inflation figure, but it isn’t required to.
Universal Credit is a special case. Under the Universal Credit Act 2025, the standard allowance got an extra boost on top of inflation this year, rising 6.2% in April 2026. How much it goes up next April will be set out with the other new rates.
In Scotland, the Scottish Government generally uses the same September figure for the benefits it runs, such as Adult Disability Payment.
What a 3.5% rise could look like
Here’s roughly what a 3.5% increase would mean for some of the main disability and carer benefits. These are our estimates. The official figures, which are usually rounded slightly, will be published by the DWP.
| Benefit (weekly) | Now (2026/27) | From April 2027 (estimate) | Increase |
|---|---|---|---|
| PIP daily living, standard rate | £76.70 | about £79.40 | +£2.70 |
| PIP daily living, enhanced rate | £114.60 | about £118.60 | +£4.00 |
| PIP mobility, standard rate | £30.30 | about £31.35 | +£1.05 |
| PIP mobility, enhanced rate | £80.00 | about £82.80 | +£2.80 |
| Attendance Allowance, lower rate | £76.70 | about £79.40 | +£2.70 |
| Attendance Allowance, higher rate | £114.60 | about £118.60 | +£4.00 |
| Carer’s Allowance | £86.45 | about £89.50 | +£3.05 |
Someone getting both enhanced rates of PIP, for example, would see about £6.80 more a week, or roughly £350 more a year.
What about the State Pension?
The State Pension follows a different rule, the triple lock, which picks the highest of inflation, earnings growth or 2.5%. With earnings growth at 3.9%, higher than September’s 3.5% inflation, the State Pension is expected to rise by 3.9% next April.
That would take the full new State Pension from £241.30 to about £250.70 a week, or roughly £13,036 a year, and the full basic State Pension from £184.90 to about £192.10.
When we’ll know for sure
The government is expected to confirm the new rates around the Budget on Wednesday, October 28. They’d then take effect from April 2027.
The higher inflation figure also adds pressure on the Bank of England. Some economists now think an interest rate rise is likely next month, which could affect mortgages and savings rates too.
We’ll update this story with the official rates as soon as they’re published.
Sources: Office for National Statistics, Consumer price inflation, September 2026, Brit Brief (October 21, 2026) and DWP benefit and pension rates 2026 to 2027.
Maria is a dedicated news writer covering the latest UK updates on DWP, PIP, State Pension Triple Lock, Child Benefit, Universal Credit, and driving licence regulations. She focuses on explaining government announcements, benefit eligibility, payment changes, pension increases, and new regulations in a clear and easy-to-understand way.