The Department for Work and Pensions is expected to lift carer’s allowance from April 2026 in line with September’s Consumer Prices Index reading of 3.8%. If ministers follow the convention, the typical claimant would see roughly £164.60 added to their annual support. The final decision rests with the Government and is widely expected to be confirmed at the Autumn Budget on 26 November.
What the numbers mean for carers
Carer’s allowance currently pays £83.30 a week to eligible unpaid carers. Applying a 3.8% uprating would take the weekly rate to about £86.47, a rise of £3.17 a week. Over 52 weeks, that’s an extra £164.60, lifting the annual total from £4,331.60 to approximately £4,496.20.
Projected 2026 uplift: +3.8% to carer’s allowance, worth about £3.17 a week or £164.60 a year for eligible claimants.
| Payment | Current | Projected 2026/27 | Change |
|---|---|---|---|
| Weekly rate | £83.30 | £86.47 | +£3.17 |
| Annual total | £4,331.60 | £4,496.20 | +£164.60 |
Think of it in monthly terms: the increase equates to roughly £13.70 more each month, though carer’s allowance is usually paid weekly or every four weeks. Any uprating applies from the start of the new tax year in April, so the full-year gain would flow through by March 2027.
When would it start?
By long-standing convention, many working-age benefits rise each April in line with the CPI rate from the previous September. Ministers retain discretion, but the September figure—3.8%—normally sets the pace. The Government is expected to confirm the 2026/27 benefit rates in the Autumn Budget on 26 November, after which the DWP issues detailed guidance and payment schedules.
Who qualifies for carer’s allowance
Carer’s allowance supports people who provide substantial care to someone with a qualifying disability benefit. You do not need to be related to, or live with, the person you care for, but you must meet strict rules.
- Provide care for at least 35 hours each week.
- Care for someone who receives a qualifying disability benefit, such as the daily living component of PIP, the middle or highest rate care component of DLA, or an equivalent award.
- Meet residency and immigration conditions.
- Stay within the weekly earnings limit after allowable deductions if you work.
The 35-hour rule applies every week you claim. An earnings limit also applies and is assessed after certain deductions.
Claiming can affect other benefits. Carer’s allowance is taxable and usually counts as income for means-tested benefits. If you receive State Pension, you may not be paid carer’s allowance due to overlapping benefit rules, though an underlying entitlement can still unlock additions in some means-tested benefits.
How the uplift interacts with other support
Any weekly rise feeds through to means-tested calculations. In Universal Credit, the separate carer element may be more advantageous for some households; it can be paid even if overlapping rules prevent a direct carer’s allowance payment. For legacy benefits, an underlying entitlement can trigger a carer premium or addition.
Two quick scenarios show how outcomes differ:
- A working carer under the earnings limit sees the weekly cash payment rise by about £3.17. If they also receive a means-tested top-up, the higher allowance could slightly reduce that top-up, but the overall gain often remains positive.
- A pensioner carer with State Pension usually can’t be paid carer’s allowance, yet they may gain via a carer addition in Pension Credit. The uprating can still raise the addition, improving total support even without a direct carer’s allowance payment.
Why September’s inflation reading matters
The Office for National Statistics set CPI inflation at 3.8% in September, below many forecasters’ expectations. That single figure becomes the benchmark for most working-age benefits the following April. For the Treasury, a lower rate trims the cost of uprating across the system. For households, it signals a modest increase rather than a sizeable jump—and it arrives with a lag, which means movements in prices over the winter won’t change the 2026/27 calculation.
Ministers have flagged support for households facing high bills, while also managing public finances. A 3.8% uprating for 2026 would sit in that balance: offering some relief to carers while limiting the rise in the welfare bill compared with a 4% or higher outturn.
What carers can do now
Use the lead time to check eligibility and avoid pitfalls. A few practical steps help:
- Track weekly hours to maintain the 35-hour threshold.
- Review earnings against the current weekly limit after allowable deductions; adjust hours if your pay rises.
- Confirm that the person you care for remains entitled to a qualifying disability benefit.
- Report changes promptly to avoid overpayments, which the DWP will seek to recover.
- Consider whether claiming carer’s allowance affects other benefits in your household; sometimes the carer element in Universal Credit or a carer premium offers a better route.
Worked example: the 2026 rise in practice
Say you currently receive £83.30 a week. From April 2026, at 3.8% uprating, you would receive around £86.47. Over the full year that is an additional £164.60. If you are paid every four weeks, your payment would move from £333.20 to about £345.88, a rise near £12.68 each pay cycle. If you also receive means-tested support, your overall income may change by slightly less than £3.17 a week, depending on how your other benefit is calculated.
From April 2026, a typical four-week carer’s allowance payment could rise to about £345.88, subject to Budget confirmation.
Related gains and risks to weigh
Carer’s allowance brings National Insurance credits, which can help protect your State Pension record. That is valuable, especially for carers who have reduced paid work. The flip side is interaction with earnings and other benefits: a pay rise, a change in the cared-for person’s award, or moving in with a partner can alter entitlement quickly. Check whether a new job or extra shifts could push net earnings over the limit in some weeks, particularly with irregular hours or bonuses.
The headline figures remain provisional until the Autumn Budget. The convention points clearly to a 3.8% rise, which implies about £164 more a year for those who meet the rules in 2026/27. Keep records, review your circumstances, and plan for how a modest uplift slots into your household budget once the rate is confirmed.
Finally some clarity—if it’s confirmed on 26 Nov. £3.17 a week isn’t huge, but it does add up over the year. 🙂 Do we need to do anything to get the rise, or is it automatic?