September’s inflation figure typically sets the benchmark for raising benefits in the new tax year.
The Department for Work and Pensions (DWP) is poised to hand Carer’s Allowance recipients an additional £164 annually from 2026 following a benefit increase.
Carer’s Allowance is a payment issued by the Department for Work and Pensions (DWP) to individuals who provide care for someone for a minimum of 35 hours weekly. This care might encompass assistance with personal hygiene and meal preparation, accompanying the person receiving care to medical appointments, or supporting with domestic duties such as bill management and grocery shopping.
The benefit excludes professional carers, instead targeting “unpaid carers” who support family members, and currently stands at £83.30 weekly.
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Benefits receive annual uplifts at the beginning of each tax year, aligned with the Consumer Prices Index (CPI) inflation rate from the preceding September. This measurement typically serves as the standard for increasing numerous benefits the subsequent April, encompassing Universal Credit, tax credits and disability benefits, alongside Carer’s Allowance.
Data from the Office of National Statistics has now verified the September inflation rate at 3.8%, meaning the benefit is anticipated to increase by at least this percentage in 2026. This would contribute roughly £164.60 yearly to the total Carer’s Allowance payments, reports the Express.
This would elevate the weekly payment sum from £83.30 to an estimated £86.47 (a boost of £3.17 weekly). Across a complete year, recipients would witness payments climb from £4,331.60 to £4,496.20 per annum.
The alterations are anticipated to be implemented in 2026, however, ministers will have the final say on the figures and the ultimate decision is likely to be included in the Autumn Budget on 26 November.
The inflation figure for September was lower than forecasted, remaining at the same level as July and August, despite economists predicting a reading of 4% for the month.
This inflation rate will be advantageous for Chancellor Rachel Reeves as it indicates 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.
Reacting to the figure this week, the Chancellor stated: “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.”
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