Cost of Living and People with Disabilities

We understand anxieties around the cost of living, in particular the effect that rising costs are having on disabled people.

There are a number of benefits and additional payments available across the welfare system to help people unable to work due to ill health and disability including the Personal Independence Payment (PIP), and Employment and Support Allowance (ESA). Disability benefits were increased by 10.1 per cent - in line with inflation - in April 2023.

We welcome the Chancellor's announcement during the Autumn Statement 2022 that, in addition to the £150 Disability Cost-of-Living Payment that reached six million people in 2022, a second such payment will be made in 2023.

Moreover, in addition to the £650 Cost-of-Living Payments made to the eight million households in receipt of means-tested benefits in 2022/23, a further such payment of £900 will be made in 2023/24. As in 2022, pensioners entitled to Winter Fuel Allowance will receive a further payment of £300 in 2023.

Children and young adults with a long-term health condition or disability can be entitled to up to £172.75 a week, tax-free, as a contribution to the wide range of extra costs they face through either Disability Living Allowance (DLA) or Personal Independence Payment (PIP). These benefits are not means-tested, are paid in addition to other social security benefits, and can also provide a passport to additional support such as premiums and additional amounts in the means-tested benefits.

An informal carer, such as a parent or guardian, providing 35 hours or more care a week to a child or adult in receipt of the middle or highest rate care component of DLA or the daily living component of PIP can also be entitled to financial support through Carer’s Allowance (CA). 

Disability benefits and Carer's Allowance were increased by 10.1 per cent in April 2023, in line with inflation. Uprating will increase expenditure on reserved non-pensioner benefits by £9 billion in 2023/24, compared to no change in these rates for the same period. From April, children receiving DLA will rise to a maximum of £172.75 - an increase of £15.85.

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