The Department for Work and Pensions (DWP) has unveiled its planned benefit increases for the 2026/27 financial year, confirming a significant cash boost for older and vulnerable claimants. The changes, set to take effect from April 2026, will see most payments rise by 3.8%, in line with the Consumer Prices Index (CPI) measure of inflation.
Key Increases for Pensioners and Carers
Among the most notable rises is for the Attendance Allowance higher rate, which supports state pensioners with severe disability needs. The weekly payment will increase from £110 to over £114, providing an additional £218 over the course of a full year.
Simultaneously, the main benefit for unpaid carers, Carer’s Allowance, will see its weekly rate go up by £3.15, from £83.30 to £86.45. Perhaps more impactful for many is the uplift to the earnings threshold. The maximum a carer can earn while still qualifying for the benefit will rise from £196 to £204 per week.
Helen Walker, Chief Executive at Carers UK, welcomed the threshold increase: “This is the first time that the Carer’s Allowance earnings threshold has risen above £200 a week and is a welcome increase for the many people juggling work and care.” She noted that linking the threshold to 16 times the National Living Wage provides clarity and prevents carers from having to reduce their hours when wages rise.
Wider Benefit Adjustments and Notable Exceptions
The uprating will affect a range of other support payments. The Carer Element within Universal Credit will increase from £201.68 to £209.34 per week, and the Carer Addition for Pension Credit will rise from £46.40 to £48.15.
However, not all benefits will follow the standard 3.8% increase. The government has confirmed that the Universal Credit standard allowance will see a larger rise, exceeding the CPI rate. Conversely, a significant reduction is planned for the limited capability for work-related activity rate for new claimants who do not meet the most severe conditions criteria, where the rate is set to be almost halved.
Calls for Further Reform Despite Uplift
While the increases provide some relief, campaigners argue that fundamental issues with carer support remain unresolved. Carers UK has reiterated its call for a comprehensive review of Carer’s Allowance.
“Despite this increase, Carer’s Allowance remains the lowest benefit of its kind,” stated Helen Walker. “62% of carers receiving Carer’s Allowance live in poverty, and 90% of carers do not think the benefit offers sufficient financial support.” The charity is pushing for a review of the benefit's eligibility criteria and level to ensure it provides sustainable, long-term support.
The published figures offer claimants early clarity on their financial outlook from April 2026, with the DWP's confirmation locking in the planned rates for the coming year.
