Carer’s Allowance Increase 2026: Who Qualifies, How Much More You’ll Get and What It Means
The Department for Work and Pensions (DWP) has confirmed that the Carer’s Allowance Increase 2026 will take effect from 6 April 2026, raising the weekly payment to £86.45.
This adjustment is part of the annual uprating of social security benefits, based on the 3.8% Consumer Prices Index (CPI) inflation rate from September 2025.
Alongside the higher weekly rate, the government is increasing the weekly earnings limit to £204.
This change is intended to help unpaid carers balance part-time work with their care commitments without losing benefit eligibility.
The update affects more than one million carers across England, Wales, and Northern Ireland who provide a minimum of 35 hours of care per week.
New Rates for Carer’s Allowance in 2026
The Carer’s Allowance Increase 2026 moves the weekly rate from £83.30 to £86.45. While the weekly increase is £3.15, this totals an additional £163.80 over a full financial year.
For households managing tight budgets, this serves as a scheduled adjustment to help meet rising utility and grocery costs.
Taxpayers should note that Carer’s Allowance is a taxable benefit.
If your total annual income including the allowance, wages, and any private pensions exceeds the standard Personal Allowance of £12,570, the benefit may be subject to Income Tax.
On its own, however, the allowance does not reach the tax-paying threshold.
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How the Revised Earnings Limit Functions
A central feature of the 2026 update is the rise in the weekly earnings threshold from £196 to £204. This limit is now linked to 16 times the National Living Wage.
This structural link ensures that when the minimum wage rises, carers are not automatically forced to reduce their working hours to remain eligible for the benefit.
The £204 limit is based on “net” earnings. You may earn a higher gross salary provided your take-home pay stays below the limit after specific “allowable deductions.” These include:
- Income Tax and National Insurance.
- Half of any private pension contributions.
- Specific business expenses.
- Costs for care (for the person you look after or a child under 16) while you are at work.
Also read: What the End of Income Support and Jobseeker’s Allowance Means for Claimants in 2026
Uplifts to Related Carer Benefits
Other forms of support within the social security system will also see increases from April 2026:
- Universal Credit Carer Element: Rising from £201.68 to £209.34 per month.
- Pension Credit Carer Addition: Increasing from £46.40 to £48.15 per week.
For those on Universal Credit, Carer’s Allowance is typically deducted from the UC payment pound-for-pound.
However, the Carer Element is added back into the calculation, which usually results in a higher total monthly income than if only one benefit were claimed.
Eligibility Criteria for the 2026 Increase
The core requirements for the Carer’s Allowance Increase 2026 remain unchanged, though the higher earnings cap may allow approximately 60,000 additional people to qualify.
Applicants must be 16 or over and spend at least 35 hours a week caring for someone receiving a qualifying disability benefit.
The person being cared for must receive one of the following:
- PIP (daily living component).
- DLA (middle or highest care rate).
- Attendance Allowance.
- Constant Attendance Allowance (at or above the normal maximum rate).
- Armed Forces Independence Payment.
Restrictions and Overlapping Benefits
Claimants cannot receive Carer’s Allowance if they are in full-time education, defined as 21 hours or more of supervised study per week.
Residency rules also apply; you must typically have lived in England, Scotland, or Wales for at least two of the last three years.
The “overlapping benefits” rule is a common point of confusion. If you receive a benefit that pays more than Carer’s Allowance such as the State Pension you cannot usually receive the cash payment.
In this situation, you may be awarded “underlying entitlement.” This does not provide a weekly payment but can increase your eligibility for other means-tested support, such as Pension Credit or Housing Benefit.
Read more: Council Budgets and Welfare Reform: How Local Authorities Are Preparing for New Benefit Pressures
Regional Differences: Scotland
In Scotland, Carer’s Allowance is being replaced by the Carer Support Payment, administered by Social Security Scotland.
While the basic payment rates generally align with DWP figures, Scottish residents may also receive the “Carer’s Allowance Supplement.”
This is an extra payment issued twice a year. Carers in Scotland should contact Social Security Scotland for their specific 2026 payment dates.
Managing Payments and Reporting Changes
Most carers will see the Carer’s Allowance Increase 2026 applied automatically to their bank accounts from the first full payment cycle after 6 April. There is no requirement to contact the DWP to trigger the update.
However, the new earnings limit makes it important to review working hours.
Because the earnings limit is a “cliff edge,” earning even £1 over the £204 net limit results in the total loss of the benefit for that week.
It is essential to report any fluctuations in income, such as overtime or bonuses, to the Carer’s Allowance Unit immediately to prevent overpayment debts.
Comparison Table: 2025/26 vs 2026/27
| Benefit Component | Rate 2025/26 | New Rate 2026/27 | Frequency |
| Carer’s Allowance | £83.30 | £86.45 | Weekly |
| Weekly Earnings Limit | £196.00 | £204.00 | Weekly |
| UC Carer Element | £201.68 | £209.34 | Monthly |
| Pension Credit Carer Addition | £46.40 | £48.15 | Weekly |
Support for Older Carers
For those of State Pension age, the increase in the underlying rate helps boost the Carer Addition in Pension Credit.
This addition can be a gateway to other support, including the Winter Fuel Payment and Council Tax Reduction.
Older carers are encouraged to request a “Carer’s Assessment” from their local council, which assesses their own health and wellbeing needs independently of DWP financial support.
The 2026 increases aim to provide a measure of stability for unpaid carers, though the strict earnings rules remain a significant factor to manage.
Are you planning to adjust your working hours due to the new earnings limit? Share your experience with the application process in the comments below.
Frequently Asked Questions
Can I claim for more than one person?
No. You can only claim one Carer’s Allowance regardless of how many people you care for. The weekly rate remains £86.45.
Will the person I care for lose money?
Possibly. If you claim Carer’s Allowance, the person you look after may lose their “Severe Disability Premium” if it is included in their benefits. It is important to check their specific award before applying.
What happens if I earn slightly over the £204 limit?
The benefit is stopped for any week where net earnings exceed the limit. Deducting allowable expenses, such as half of your pension contributions, can often help you stay under the threshold.
When will the first increased payment arrive?
The new rates apply from Monday, 6 April 2026. Your first payment after this date will reflect the new rate, depending on whether you are paid weekly or every four weeks.
