The Department for Work and Pensions (DWP) is set to give an extra £164 per year to Carer’s Allowance claimants in 2026 following an uprating to the benefit.

Carer’s Allowance is a benefit paid by the Department for Work and Pensions (DWP) to those who care for someone for at least 35 hours per week. The care can include helping with washing and cooking, taking the person you care for to a doctor’s appointment, or helping with household tasks, such as managing bills and shopping. The benefit isn’t for professional carers, but for “unpaid carers” who look after a loved one and it is currently worth £83.30 per week. Benefits are increased at the start of every new tax year in line with the Consumer Prices Index (CPI) rate of inflation from the previous September. Typically, this figure is used as the benchmark for raising many benefits the following April, including Universal Credit, tax credits and disability benefits, as well as Carer’s Allowance.

Figures from the Office of National Statistics have now confirmed the September inflation figure as 3.8%, so it is expected that the benefit will rise by at least this much in 2026. This would add approximately £164.60 per year to the annual Carer’s Allowance payments.

This would take the weekly payment amount from £83.30 up to an estimated £86.47 (an increase of £3.17 per week). So over a full year, claimants would see payments rise from £4,331.60 up to £4,496.20 annually.

The changes are expected to be put in place in 2026 but ministers will have the final say on the figures and the final decision is likely to be included in the Autumn Budget on November 26.

The September inflation figure was lower than expected, remaining at the same level as July and August, despite economists predicting a reading of 4% for the month.

The inflation rate will be beneficial for Chancellor Rachel Reeves as it points to a smaller than expected rise in the cost of living for households and also a weaker than expected increase in many welfare payments in 2026.

Commenting on the figure this week, the Chancellor said: “I am not satisfied with these numbers. For too long, our economy has felt stuck, with people feeling like they are putting in more and getting less out.

“I am determined to ensure we support people struggling with higher bills and the cost of living challenges, deliver economic growth and build an economy that works for, and rewards, working people.”