Introduction
Personal Independence Payment (PIP) is a UK benefit designed to support people with long-term illnesses or disabilities. In essence, your PIP personal budget is the money awarded to you through PIP – extra funds to help with the additional costs of living with a disability. PIP is not means-tested (your income or savings do not affect it) and it’s tax-free. This means you can receive PIP whether or not you are working, and it won’t be reduced if you have other income. It’s truly a personal budget for you to use as needed to maintain your independence.
In this guide, we’ll explain what the PIP personal budget entails, including a breakdown of the PIP care component (daily living) and the mobility component. We’ll look at the current PIP mobility rates 2025 (the latest weekly payment amounts), clarify the difference between enhanced vs standard PIP awards, and discuss how PIP payment amounts are calculated. You’ll also find practical examples, guidance on using your PIP payments, FAQs, and a call-to-action if you need further assistance.
What is a PIP Personal Budget?
In the context of Personal Independence Payment, your “personal budget” refers to the money you receive from PIP to help you manage the extra costs caused by a health condition or disability. Unlike a local council personal budget (which is funding for care services after a social care assessment), PIP is a benefit paid by the Department for Work and Pensions (DWP). You have control over this money – you can spend it on whatever you need to improve your quality of life.
PIP is intended to *“help you with everyday life if you’ve an illness, disability or mental health condition”*. Think of it as financial support to cover things like help with personal care, mobility aids, transportation, or other living expenses that arise because of your disability. There is no requirement to report or prove how you spend your PIP. You won’t be told what to spend PIP on – it’s entirely up to you to budget it in the way that best supports your independence. For instance, one person might use their PIP to pay for a home caregiver, while another might use it for higher utility bills due to their condition, and someone else might save it for mobility equipment or taxi fares.
It’s important to note that PIP replaced the old Disability Living Allowance (DLA) for most adults. If you’re a new claimant under State Pension age, you’ll be applying for PIP, not DLA. PIP is awarded based on how your condition affects your daily life and mobility, not on the condition itself. Next, we’ll break down the two components of PIP – daily living and mobility – often thought of as the “care” and “mobility” parts of your PIP personal budget.
PIP Components: Daily Living (Care) and Mobility
PIP is made up of two parts (or “components”): a daily living component (sometimes informally called the PIP care component) and a mobility component. You can be eligible for one, both, or neither component, depending on how your disability affects you. Each component is assessed separately. Let’s look at what each involves
Daily Living Component (PIP Care Component)
The daily living component of PIP is for the extra help you need with everyday personal tasks. This covers a range of activities that are essential for day-to-day living (hence why it’s sometimes referred to as the care component of PIP). Examples of daily living activities include:
- Preparing and cooking food
- Eating and drinking
- Managing your medication or treatments
- Washing and bathing
- Using the toilet and managing incontinence
- Dressing and undressing
- Communicating verbally (talking, listening)
- Reading and understanding written information
- Socialising and mixing with other people
- Making complex decisions about money
When you apply for PIP, you will be asked about how you manage these kinds of tasks. The DWP assesses how much assistance or difficulty you have in each area. For each activity, you are scored with a certain number of points based on your ability or the support you need (this is done using predefined descriptions called descriptors). The total points across these daily living activities determines if you qualify for the daily living component, and at which rate (standard or enhanced).
Standard Daily Living: You’ll get the standard rate if your ability to carry out daily living tasks is limited and you score between 8 and 11 points in total. This suggests you do need some help with daily activities, but not to the maximum severity in every area.
Enhanced Daily Living: You’ll get the enhanced rate if your ability is severely limited and you score 12 points or more on the daily living activities. This indicates you have significant difficulties with most daily tasks and need a higher level of support.
Example: If someone has trouble preparing meals and also needs help dressing, the points from those difficulties will be added. Suppose they score 4 points for needing assistance to prepare food and 4 points for needing help getting dressed, their total of 8 points would qualify them for the standard rate of the daily living component. On the other hand, a person with more severe limitations (for example, who cannot perform several tasks at all without assistance) might accumulate 12 or more points, qualifying them for the enhanced rate – meaning a larger personal budget for daily living needs.
Mobility Component
The mobility component of PIP is for the extra help you need with getting around and making journeys. This component looks at how your condition affects your mobility in two main areas
“Planning and following journeys” – Can you plan a route and navigate to a location by yourself, or do you need guidance or supervision due to sensory, cognitive, or mental health issues?
“Moving around” – This assesses your physical ability to stand and move. How far can you walk or move on level ground, and do you need aids or another person to assist?
Just like the daily living part, the mobility activities have a points system. The DWP will score your difficulties with mobility based on set descriptors – for example, whether you can walk more than 50 metres unaided, or if you need help planning a journey in unfamiliar places. These scores then determine your mobility component rate:
Standard Mobility: If you score between 8 and 11 points in total on the mobility activities, you’ll receive the mobility component at the standard rate. This typically applies if you have some difficulty getting around (for instance, you can walk a short distance or need some prompting for journeys).
Enhanced Mobility: If you score 12 points or more on mobility, you’ll receive the enhanced rate. This indicates severe difficulty with mobility, such as being unable to walk more than a very short distance even with aids, or not being able to undertake any journey without support.
Example: Imagine you can walk up to 20 metres using a stick, but walking any farther causes severe pain and you cannot repeat it again that day. In the PIP assessment, this limitation might score 12 points under the “moving around” activity (since walking only very short distances is considered a serious restriction). With 12 points, you would be awarded the enhanced mobility rate. On the other hand, if you can walk around 50 metres with some discomfort, you might score, say, 8 points – enough for standard mobility but not enhanced.
Can I Receive Both Components?
Yes, you can be awarded either or both components of PIP. The assessments are separate. Some people qualify only for the daily living component (if their main difficulties are with personal care, but they can get around fine), while others qualify only for mobility support. Many receive both components if their disability affects both daily tasks and mobility. It’s also possible to get different levels for each component – for example, standard rate daily living and enhanced rate mobility, or vice versa. Your PIP personal budget will then consist of the sum of the amounts for each component you’re awarded.
If you score below 8 points in one component’s activities, you won’t get that part of PIP at all. For instance, someone might score enough points for daily living but not enough for mobility, resulting in a daily living payment only. The goal of the assessment is to ensure each person gets support tailored to the aspects of life where they have the most difficulty.
Enhanced vs Standard PIP: What’s the Difference?
A key part of understanding your PIP award is knowing the difference between standard vs enhanced PIP rates. Simply put, “standard” and “enhanced” are the two levels of payment for each PIP component, reflecting how severe your needs are
Standard Rate: The lower level of support, for individuals whose ability to carry out daily living or mobility activities is limited (but not completely or always impaired). In the PIP points system, this corresponds to a score of 8–11 points for the respective component. Standard rate provides a generous help, but it’s less money than the enhanced rate.
Enhanced Rate: The higher level of support, for those whose ability to carry out the activities is severely limited. This corresponds to scoring 12 points or more on daily living or mobility, indicating more substantial needs. Enhanced rate PIP gives you a larger amount of money each week, reflecting the greater support you require.
The crucial difference is therefore one of degree: enhanced PIP means your disability has a more significant impact on your day-to-day life or mobility, so you receive a higher payment. For example, someone who can manage some tasks with difficulty might get standard rate, whereas someone who cannot manage most tasks without assistance would get enhanced.
Importantly, it’s possible to have a mix – you might get the enhanced rate for one component and standard for the other, depending on your needs. There isn’t a single “enhanced PIP” or “standard PIP” overall; instead, you have an award for each component. When people talk about being on “enhanced PIP” they usually mean they get enhanced for at least one component (often they specify, e.g. “enhanced daily living and standard mobility”).
How PIP Payment Amounts Are Calculated
PIP payment amounts are determined by the rate (standard or enhanced) of each component you qualify for. The points you score in the assessment decide the rate, as described above – there is no further variation beyond that. In other words, PIP doesn’t increase gradually per point; it jumps to the set standard amount if you meet the standard threshold, and to the higher amount if you meet the enhanced threshold. If you qualify for both components, your total PIP personal budget will be the sum of the two relevant rates.
The actual money amounts for PIP are fixed by the government and typically increase slightly each year. PIP is paid on a weekly rate, but it’s usually disbursed as a lump sum every four weeks (more on payment frequency shortly). Here are the current PIP payment amounts for the 2025/26 tax year (effective from April 2025):
Daily Living Component: £73.90 per week at the standard rate, or £110.40 per week at the enhanced rate.
Mobility Component: £29.20 per week at the standard rate, or £77.05 per week at the enhanced rate.
These figures are the PIP rates for 2025 and are subject to change in future years (they usually rise with inflation each April). So, for example, if you are awarded standard daily living and enhanced mobility, your weekly PIP would be £73.90 + £77.05 = £150.95 per week. PIP is paid every four weeks, so you would typically receive four weeks’ worth at a time, which in this example would be £603.80 every payment cycle.
Tip: When budgeting, remember that most PIP claimants get their payment every 4 weeks, not monthly by calendar month. Mark your payment dates so you know when the lump sum is due. (If you have a terminal illness, PIP is paid weekly, but that is an exception.) Your PIP decision letter will tell you your weekly award rates and what day you’ll be paid each month.
Using Your PIP Personal Budget
One of the advantages of PIP is that it is flexible – you can use the money in whatever way best meets your needs. Unlike some support which is given as services or vouchers, PIP is paid directly to you, into your bank account, for you to manage. Here are some practical ways people use their PIP personal budget
Hiring care or support services: You might use PIP to pay for a carer or personal assistant to help with daily tasks, or to contribute towards domiciliary care costs.
Equipment and adaptations: Many invest in mobility aids, adaptive equipment, or home modifications (like grab rails, adapted kitchen tools, or a mobility scooter) to make daily life easier.
Transportation: PIP can fund taxi journeys or extra fuel costs if public transport is not accessible to you. The mobility component in particular is intended to help with getting around. For instance, if you receive the enhanced mobility rate, you could exchange that allowance to lease a car or scooter through the Motability Scheme. The Motability Scheme allows those on higher mobility to get a vehicle (or powered wheelchair) by using all or part of their mobility payment directly for the lease – a valuable option if driving improves your independence.
Everyday expenses due to disability: PIP often goes toward higher bills or costs that arise from your condition. For example, you might need to keep your home warmer (leading to higher heating bills), follow a special diet, or replace clothing/bedding more often. PIP can help cover these extra costs of living. As one recipient shared, they chose to spend PIP on better quality food for their family to support nutritional needs – it’s really about what you need.
Therapies and health-related costs: Some people use their PIP money for private therapy sessions, counselling, or activities that improve their well-being, if those aren’t readily available through the NHS. Since “you can spend PIP on whatever you need” and there’s no restriction, using it for mental health support or physical therapy is perfectly acceptable if that helps you.
It’s worth noting that there is no obligation to spend PIP on specific things. Even though PIP is awarded to help with care or mobility needs, you are not monitored on your spending. For example, even the mobility part can be spent however you like – you are not forced to only spend it on transport. That said, for your own benefit, it’s wise to use the money to address the challenges that led to you getting PIP. Essentially, PIP provides you with greater freedom of choice: it’s a personal budget to improve your quality of life.
Additional Support and Discounts
Having a PIP award can also unlock other forms of help and cost savings, which can be seen as an extension of your personal budget
If you receive any rate of the mobility component, you can usually apply for a Blue Badge (for disabled parking) to make parking easier.
If you receive the enhanced mobility rate, you are eligible for a 100% exemption from Vehicle Excise Duty (road tax) on a vehicle, and if you receive the standard mobility rate, a 50% reduction in road tax. This can save you hundreds of pounds a year if you drive.
As mentioned, enhanced mobility qualifiers can join the Motability Scheme to lease a car, scooter, or powered wheelchair, often with maintenance and insurance included. This can be a game-changer for independence.
If you receive either component of PIP, you’re entitled to a Disabled Person’s Railcard for discounted train travel. You may also get concessions on bus travel – many local councils offer free or discounted bus passes to PIP recipients.
PIP (daily living component) can lead to extra premiums or top-up amounts if you receive certain other benefits. For example, you might get more money in means-tested benefits (like Income Support, ESA, Housing Benefit, etc.) through a disability premium, because you’re on PIP. Also, a family member or friend who cares for you may be able to claim Carer’s Allowance if you get the daily living component and meet other conditions.
In short, your PIP personal budget is not just the weekly amount in isolation; it’s a key to a suite of support designed to help you live more independently. Be sure to explore these additional supports – they can stretch your budget further. For personalized advice on maximizing what you’re entitled to, consider reaching out to a welfare advisor or a legal consultant familiar with disability benefits (see our contact information at the end for assistance).
Frequently Asked Questions (FAQs)
Q: What is a PIP personal budget?
A: A PIP personal budget refers to the money you receive from Personal Independence Payment (PIP) to support your needs. It’s essentially your PIP award – a sum of money you control, to spend on things that help you manage or mitigate the difficulties caused by your disability. It’s “personal” because you decide how to use it. Unlike a local authority care budget, which might be managed on your behalf, your PIP personal budget is paid directly to you as a benefit. It’s not means-tested, not taxable, and meant to help with extra costs of daily living and mobility. In other words, it’s your financial support to maintain independence.
Q: How much is PIP in 2025 (what are the current PIP rates)?
A: As of the 2025/26 rate year, the weekly PIP rates are as follows:
Daily Living (Care) Component: £73.90 per week at the standard rate, or £110.40 per week at the enhanced rate.
Mobility Component: £29.20 per week at the standard rate, or £77.05 per week at the enhanced rate.
These rates apply in England and Wales (and Northern Ireland) for 2025. If you qualify for both components, you’ll receive one amount for daily living and one for mobility, added together. PIP rates usually change every April, so always check the latest figures for the current year.
Q: What’s the difference between standard and enhanced PIP?
A: Standard vs enhanced PIP denotes the level of support you get. The enhanced rate is higher and is awarded if your ability to carry out activities is severely limited, whereas the standard rate is awarded if your abilities are limited to a lesser degree. In practical terms, enhanced PIP means you need more help or have more difficulty with daily tasks or mobility than someone on the standard rate. The difference is determined by the points score from your PIP assessment: scoring 12 points or more on the daily living or mobility criteria gives you the enhanced rate for that component, while scoring 8 to 11 points gives you the standard rate. Enhanced rate PIP pays more money per week than standard rate, reflecting your greater needs. For example, in 2025 the enhanced mobility rate is £77.05/week vs £29.20/week at standard. Enhanced vs standard is not a lifetime label – if your needs change, your rate can be reassessed.
Q: How often is PIP paid and how will I receive it?
A: PIP is paid every four weeks in arrears (meaning you receive payment for the past 4 weeks of entitlement). The only exception is if you are terminally ill, in which case payments are made weekly. When your claim is approved, the DWP will send you a decision letter that states the start date of your payments, the day of the week you’ll usually be paid, and how long the award is for. All PIP payments are made directly into your bank, building society, or credit union account via elec