As April 2026 approaches, many people in the UK are asking if their disability benefits will increase. The good news is: yes, they will. The Department for Work and Pensions (DWP) has confirmed a 3.8% increase in key disability benefits. This change will affect about 3.9 million people in the UK. If you receive Personal Independence Payment (PIP), Disability Living Allowance (DLA), Attendance Allowance, or Carer’s Allowance, this increase aims to help with the rising cost of living and support vulnerable groups.
At Clarkwell & Co. Chartered Certified Accountants, we understand the difficulties families face with benefit changes. Our team is dedicated to making financial information clearer for our clients in London and beyond. In this blog, we will explain the upcoming changes and how they impact your budget, benefits, and financial planning.
Why Are the DWP Benefit Rates Changing in 2026?
Each year, the UK government reviews social security payments to keep them aligned with inflation and the economy. This process is called uprating benefits. For the financial year 2026/27, several benefits managed by the DWP will increase by 3.8% to help those who depend on this support in their daily lives.
This increase comes at a crucial time. Rising bills for utilities, transport, groceries, and housing have added pressure on people living on tight budgets. The 3.8% increase aims to help individuals cope with economic challenges.
These changes show that the government recognises that disabled individuals, older adults, and unpaid caregivers face significant financial difficulties. The DWP has updated the rates for PIP and DLA 2026 to ensure that essential support is fair and useful.
Personal Independence Payment (PIP): What You’ll Get in 2026
Personal Independence Payment (PIP) helps people with long-term health issues or disabilities that impact their daily lives or mobility. Starting in 2026, PIP payments will increase for everyone. Now, let’s answer the main question: How much will PIP pay in April 2026?
Updated PIP Payment Rates (2026/27):
- Enhanced Daily Living: £114.60 (up from £110.40)
- Standard Daily Living: £76.70 (up from £73.90)
- Enhanced Mobility: £80.00 (up from £77.05)
- Standard Mobility: £30.30 (up from £29.20)
PIP awards depend on individual assessments. Some people get support for only one part, while others qualify for both. You could receive up to £194.60 per week, or £778.40 every four weeks.
The new PIP and DLA rates for 2026/27 show an increase. This extra money can help with costs for personal care, medical equipment, travel, or food needs. At Clarkwell & Co., our experts can help you understand how your benefits relate to tax planning, especially if you have other income or savings.
Disability Living Allowance (DLA): 2026 Rates Breakdown
DLA is mostly replaced by PIP for working-age adults, but it’s still available for children and some older claims. If you or a family member gets DLA, pay attention to the new rates coming in 2026.
DLA Care Component:
- Highest Rate: £114.60 (previously £110.40)
- Middle Rate: £76.70 (previously £73.90)
- Lowest Rate: £30.30 (previously £29.20)
DLA Mobility Component:
- Higher Rate: £80.00 (previously £77.05)
- Lower Rate: £30.30 (previously £29.20)
The DLA 2026 rates are part of the DWP’s increase in benefits for 2026, aimed at making benefits more consistent. If you have a child with special needs, this update may help cover the costs of care, therapy, and transport to medical appointments.
We encourage families to check their award letters often and ask for help if they have questions about eligibility. Our accountants can assist you in tracking how DLA payments relate to other benefits like Child Tax Credit or Universal Credit.
Attendance Allowance: April 2026 Increases
Attendance Allowance is a benefit for people over State Pension age who need help because of a disability or health issue. It does not depend on income or savings, which makes it especially important for older adults with moderate to severe care needs.
Attendance Allowance April 2026 Rates:
- Higher Rate: £114.60
- Lower Rate: £76.70
This increase reflects higher care costs, like hiring help, transportation for hospital visits, and mobility equipment. If you’re assisting a relative with their benefits or planning for the long term, this information is important.
At Clarkwell & Co., we help older clients and their families with retirement tax, trusts, and estate planning. If you’re already working with our team on tax investigations in London, these benefit updates might change financial thresholds for other allowances.
Carer’s Allowance: 2026 Weekly Uplift and Earnings Thresholds
Carers are essential in society. They often give up paid jobs to care for people with disabilities. The Carer’s Allowance update for 2026 offers a small but useful increase in both the weekly rate and the earnings limit.
New 2026 Carer’s Allowance Details:
- Weekly Payment: £86.45 (up from £83.30)
- Earnings Threshold: £204/week (up from £196)
If you make £204 or less per week after deductions, you can still qualify. This is especially helpful for part-time carers who also work. We often help clients who are self-employed carers or have multiple income sources.
If you run your own business and care for someone, make sure to include this benefit in your annual return. You might also qualify for SEIS and EIS Tax Relief Services in London. We can help you manage your income to stay compliant and maximise your benefits.
What Are DWP Uprating Letters and Why They Matter
Every spring, the DWP sends updated award notifications to benefit recipients. These are called DWP uprating letters, and they confirm the new rates starting in April. Let’s look at why these letters matter more than you might expect.
Your DWP uprating letters 2026:
- Contain your revised benefit amount
- Show how your award breaks down by component
- Serve as proof of entitlement when applying for council tax support, disabled railcards, or housing schemes
These letters are important for applying for grants, visas, or financial reviews. Many clients at Clarkwell & Co. request these documents when facing HMRC investigations to verify their income sources.
If you haven’t received your letter by mid-April or have lost it, contact the DWP right away. We also suggest making a digital copy for your records.
Understanding Award Combinations: Realistic Scenarios
PIP and DLA payments have two parts: daily living and mobility. Each part has two levels: standard and enhanced. This makes eight possible combinations that affect your total amount.
Real-World Award Examples:
- Standard Daily Living + Standard Mobility: £107/week or £428 per period
- Enhanced Daily Living + Enhanced Mobility: £194.60/week or £778.40 per period
- Standard Daily Living + Enhanced Mobility: £156.70/week or £626.80 per period
- Enhanced Daily Living + Standard Mobility: £144.90/week or £579.60 per period
Knowing your combination is crucial for budgeting. If you’re unsure, ask your caseworker or contact DWP. You can also talk to our accounting team in Central London. They help clients include benefit income in their tax plans.
Smart Budgeting with the New 2026 Rates
With a benefits increase coming soon, it’s a great time to review your household finances. Even a small increase can help with energy costs, food bills, travel, or savings.
Start by making a detailed monthly budget that lists all your fixed and variable expenses. Compare this budget with your new benefit rates. If you need help forecasting, Clarkwell & Co. offers support. Our experienced accountants in North London regularly assist clients with financial planning focused on benefits.
You might qualify for extra allowances like housing benefit or council tax support. Adding these to the new disability benefit rates in the UK for 2026 can boost your income.
Stay Informed, Stay Supported
The DWP benefit rates in 2026 will provide a much-needed financial boost. If you’re a long-term claimant, a new recipient, or a carer, staying informed will help you plan better and live more comfortably.
Check your DWP rates for PIP and DLA for 2026, review your uprating letter, and consult professionals if you notice any errors. At Clarkwell & Co., we’re here to support you, whether you’re in Camden, North London, or anywhere else in the UK. Our team includes accountants and benefit specialists ready to meet your needs.
If you have questions about including benefit income in your tax return or planning for the future, we can help. We also offer advice on HMRC investigations, SEIS/EIS, and full accounting for individuals and families.
