A 3.8% September inflation reading points to a 2026 rise in Carer’s Allowance, with ministers set to confirm plans in the Autumn Budget.
What the 2026 rise could mean for unpaid carers
The Department for Work and Pensions uses the Consumer Prices Index for September as the usual yardstick for uprating working-age benefits each April. The Office for National Statistics confirmed September CPI at 3.8%, matching July and August and below many forecasts. If ministers apply that benchmark to Carer’s Allowance in 2026, unpaid carers would see a modest but welcome uplift.
Carer’s Allowance currently pays £83.30 a week to people who provide at least 35 hours of care to someone receiving a qualifying disability benefit. The DWP expects to increase the rate by the September measure of inflation. On a 3.8% uprating, the weekly payment would move to around £86.47.
Projected rise: £3.17 extra a week, taking annual support from £4,331.60 to about £4,496.20 — roughly £164.60 more in 2026.
| Carer’s Allowance | Weekly | Annual (52 weeks) | Change |
|---|---|---|---|
| Current rate | £83.30 | £4,331.60 | — |
| Projected 2026 rate (CPI 3.8%) | £86.47 | £4,496.20 | +£164.60 a year |
Final figures sit with ministers and will be set out on 26 November in the Autumn Budget. The direction of travel looks clear, yet the DWP can deviate where policy demands, so carers should treat these numbers as indicative until confirmed.
Why September’s inflation number matters
The September CPI reading decides the standard uprating reference for many payments, including Universal Credit, tax credits, disability benefits and Carer’s Allowance. A 3.8% print holds down the scale of increases next year, easing pressure on public finances while still lifting incomes in cash terms.
Economists expected a reading nearer 4%. The outturn helps households by signalling slower price growth than feared, although the squeeze from previous inflation spikes continues to bite. The Treasury also faces a smaller uprating bill, shaping choices across welfare and tax policy.
Lower inflation softens the hit to budgets, but it also trims how much benefits rise. Carers will still see more money, just not as much as during 2023–24’s high-inflation years.
Who qualifies for Carer’s Allowance?
Carer’s Allowance supports people who provide regular, substantial care. It is not paid to professional carers. You can qualify if you:
- Give care for at least 35 hours a week to someone on a qualifying disability benefit.
- Are aged 16 or over and not in full-time education.
- Have earnings below the weekly limit after allowable deductions such as some pension contributions and certain care costs.
Care can include helping with washing, dressing, cooking, medication, appointments, paperwork and shopping. The person you care for must receive a qualifying benefit such as the daily living component of Personal Independence Payment, the middle or higher rate care component of Disability Living Allowance, or Attendance Allowance.
Claiming Carer’s Allowance usually brings National Insurance credits that help protect your State Pension record. You need to report changes promptly, particularly changes to work, study, hospital stays or the cared-for person’s benefit awards.
How the rise could interact with other benefits
Carer’s Allowance can affect other support. It overlaps with the State Pension, which means you cannot be paid both in full at the same time. If your State Pension is higher, you may not receive Carer’s Allowance money, but you can get an underlying entitlement. That status can boost means-tested benefits such as Pension Credit through a carer addition.
Universal Credit includes a carer element if you look after a severely disabled person for at least 35 hours a week. You may qualify for that element whether or not you get a Carer’s Allowance payment, provided you meet the criteria. Many legacy benefits also include a carer premium which can increase awards.
Check how Carer’s Allowance interacts with your State Pension, Universal Credit and Pension Credit. Underlying entitlement can raise what you receive from other benefits even if the Carer’s Allowance payment itself is not made.
Key dates and what happens next
Ministers are expected to confirm uprating plans for April 2026 in the Autumn Budget on 26 November. The DWP then lays regulations, and new rates typically take effect from the first full benefit week after the start of the tax year in early April.
If the final decision sticks with September’s 3.8% CPI, unpaid carers would see the weekly increase of about £3.17 reflected in their payments from April 2026. Payment timetables depend on your claim cycle, bank holidays and weekends.
Practical steps to take now
- Review your eligibility: confirm the cared-for person receives a qualifying disability benefit and that you meet the 35-hour rule.
- Track earnings carefully: the weekly earnings limit applies after deductions. One-off overtime can tip you over; plan shifts to avoid overpayments.
- Keep records: diary your caring hours and keep payslips. Good records help if the DWP queries your claim.
- Check related entitlements: you may qualify for the carer element in Universal Credit, a carer premium in legacy benefits, or Council Tax reductions.
- Ask about backdating: new claims can be backdated for up to three months if you met the conditions earlier.
What this means for your household budget
The projected £164.60 a year uplift will not erase the higher cost of food, energy and transport, but it adds predictable support for carers who often cut working hours to keep someone safe. If you also receive the carer element in Universal Credit, check whether that element rises in line with the same CPI measure in 2026, as that could lift your total monthly income further.
Build the increase into a simple monthly budget. Ringfence part of the extra cash for recurring costs such as prescriptions, travel to appointments or higher winter energy use. If your earnings vary week to week, consider a buffer to reduce the risk of temporary ineligibility causing a shortfall.
Example scenario
Amira cares 40 hours a week for her father and receives Carer’s Allowance at £83.30 a week. On a 3.8% uprating, her weekly rate would move to around £86.47 in April 2026. Over a year, that adds about £164.60. Amira also gets the carer element within Universal Credit. If that element is uprated, her total monthly support rises again, helping with transport and extra heating during winter.
The uplift is modest, but it recognises the hours carers give. Make sure your claim is correct and that you are getting every related top-up you can.
Risks, checks and useful reminders
- Overpayments: earnings above the limit, even for a single week, can trigger recovery action. Report changes quickly.
- Hospital and respite stays: extended stays for you or the cared-for person can affect entitlement. Note dates and inform the DWP.
- Education: full-time study usually prevents Carer’s Allowance. Course hours and guided learning hours matter.
- National Insurance: Carer’s Allowance usually brings NI credits, helping your State Pension record when work hours fall.
Will this actually help if carers lose UC or Council Tax support because of interactions? Does underlying entitlement to Carer’s Allowance still boost Pension Credit if the State Pension is higher? DWP comms are never cleer.