Over 150,000 adults with disabilites will keep at least £400 extra each year to help ease cost of living pressures under new government measures. The package also includes £700 million to support tens of thousands of home adaptations.
The UK government is increasing the amount that working-age adults who receive social care must be able to keep after paying for home care (known as the minimum income guarantee) by 7% from April 2026 – strengthening this safety net to ensure that people have enough for daily expenses and helping to ease financial pressures.
This is the largest above-inflation uplift in more than a decade and means working-age adults receiving care in the community will have more money left over for everyday essentials such as food, heating and bills. Those eligible for the disability premium, an additional amount for people with greater disability needs, will keep up to £510 more per year.
The government has also confirmed £723 million for the Disabled Facilities Grant (DFG) next year to help older and disabled people adapt their homes so they can live safely and independently. The DFG supported around 60,000 people last year and it helps keep people out of hospital and living comfortably in their own homes.
The changes form part of the government’s action to support those that need it most with the cost of living, while reforming adult social care and improving independence.
Minister of State for Care, Stephen Kinnock, said: We are determined to not only reform adult social care but do it in a way that helps some of the most vulnerable people in society with the daily pressures they face.
From April, more than 150,000 disabled adults will keep hundreds of pounds more each year – putting extra money back into their pockets to help with everyday costs.
At the same time, we are putting more money into funding life-changing home adaptations so older and disabled people can live safely and independently.
These steps are part of our wider plans to build a national care service rooted in quality, fairness and dignity for all that use it.
Jon Sparkes, Chief Executive of Mencap, said: The government’s decision to update the minimum income guarantee for working-age disabled adults accessing social care by 7% is good news.
We are pleased that ministers have listened to people with a learning disability about how social care charging impacts upon their household costs and overall wellbeing.
Mencap has campaigned on this issue for a long time – for many years, the rates did not go up at all and people experienced real hardship. Our ultimate aim is to build a society where social care is free at the point of need and no one with a learning disability has to use their benefits to pay for care. This inflation-busting 7% is a welcome step in the right direction.
From April 2026, the personal expenses allowance, financial support for those in residential care and the minimum income guarantee for all other age groups (over State Pension age) will increase by 3.8%. You can read more in Social care charging for local authorities: 2026 to 2027.
The DFG enables people to make practical changes to their homes – from level-access showers to lifts and smart assistive technology – helping them move around safely, maintain independence, and stay connected to family and community.
Home adaptations play a crucial role in supporting the NHS by preventing falls and other accidents in the home, speeding up hospital discharges and reducing admissions, all of which ease pressure on the health service and help to shift care out of hospital and into the community.
The government is committed to building a national care service based on high-quality care, choice and control and has appointed Baroness Louise Casey to chair an independent commission into adult social care as part of our critical first steps towards delivering this. Her first recommendations are due to be published this year.
To reform adult social care, the government has made available a funding boost of £4.6 billion by 2028 to 2029, including £500 million for the first ever fair pay agreement to bolster the recruitment and retention of care workers.
The fair pay agreement is a major step towards boosting the wages of adult social care workers across England. A new body to negotiate changes to pay and terms and conditions for care workers will be set up including both employers and trade unions – driving real change for a workforce that has long been undervalued and underpaid.
Alongside this, the government is improving training and qualifications, and has launched the first ever universal career structure for carers.
