The Department for Work and Pensions (DWP) has announced a significant financial boost for hundreds of thousands of people across the UK. From next April, those claiming Carer's Allowance will see their payments increase by approximately £165 per year.
How the increase is calculated
This uplift forms part of the government's legal requirement to increase certain benefits in line with the previous September's inflation rate. The 3.8% increase is based on the Consumer Prices Index (CPI) inflation figure for the year to September 2025.
For carers, this means their weekly payment will rise from the current £83.30 to an estimated £86.47. Annually, this translates to an increase from £4,331.60 to £4,496.20, providing an extra £164.60 over the course of the year to help with rising living costs.
Eligibility for Carer's Allowance
To qualify for Carer's Allowance, you must meet specific criteria. You need to be aged 16 or over and provide care for at least 35 hours per week. Your earnings after tax, National Insurance, and certain expenses must not exceed £196 per week from April 2025.
Furthermore, the person you care for must be receiving one of the following qualifying benefits:
- The daily living component of Personal Independence Payment (PIP)
- Attendance Allowance
- The middle or higher rate of the care component of Disability Living Allowance (DLA)
- Constant Attendance Allowance at the normal maximum rate
- Armed Forces Independence Payment
- The middle or higher rate of the care component of Child Disability Payment (Scotland)
- The daily living component of Adult Disability Payment (Scotland)
You must also meet UK residence and immigration conditions and not be in full-time education.
What this means for carers
This annual increase represents a crucial recognition of the vital role that unpaid carers play in our society. With living costs continuing to challenge household budgets, this £165 annual boost will provide some welcome relief to those dedicating their time to caring for others.
The increase is part of a broader package of nine benefits that the DWP is legally required to uprate each April in line with inflation, ensuring that support keeps pace with rising prices for some of the most vulnerable members of society.
