Thousands of disabled adults in England are set to receive additional financial support under new government measures aimed at easing cost of living pressures. More than 150,000 working-age adults who receive social care will be allowed to keep at least £400 extra per year, offering meaningful relief at a time when household expenses remain high.
The announcement also includes a significant funding package to improve home accessibility for older and disabled people, helping them live more safely and independently.
7% Increase to Minimum Income Guarantee From April 2026
From April 2026, the Minimum Income Guarantee for working-age adults receiving social care will rise by 7%. This marks the largest above-inflation increase in over a decade.
The Minimum Income Guarantee ensures that individuals receiving care services are left with a protected amount of income after contributing toward care costs.
As a result of this increase:
- Over 150,000 people will retain at least £400 more annually
- Individuals eligible for the disability premium could keep up to £510 extra per year
- More income will remain available for essentials such as food, heating, and daily bills
This change is designed to reduce financial hardship and ensure that disabled adults are not forced to sacrifice basic needs to cover care charges.
Minimum Income Guarantee Impact
| Category | Financial Impact |
|---|---|
| Working-age adults on social care | At least £400 extra per year |
| Those eligible for disability premium | Up to £510 extra per year |
| Increase rate | 7% |
| Effective date | April 2026 |
£723 Million Investment in Home Adaptations
Alongside the income boost, the government has confirmed £723 million in funding for the Disabled Facilities Grant for the 2026–2027 financial year.
The grant helps disabled and older individuals make essential changes to their homes to improve accessibility and safety. Around 60,000 people benefited from this funding last year.
Adaptations funded through the grant may include:
- Level-access showers
- Stair lifts and home lifts
- Ramps and widened doorways
- Smart assistive technology
These improvements not only increase independence but also reduce the risk of falls and hospital admissions.
Disabled Facilities Grant Allocations 2026–2027
| Region | Allocation (£) |
|---|---|
| North East | 40,991,139 |
| North West | 124,356,177 |
| Yorkshire and the Humber | 69,779,658 |
| East Midlands | 51,658,126 |
| West Midlands | 89,602,528 |
| East of England | 66,019,956 |
| London | 95,935,564 |
| South East | 115,148,496 |
| South West | 69,508,356 |
| Total | 723,000,000 |
Safer homes help reduce pressure on the NHS by preventing accidents and supporting quicker hospital discharges.
Additional Social Care Adjustments From April 2026
Further changes to social care support will also take effect from April 2026:
- The personal expenses allowance for individuals in residential care will increase by 3.8%
- The Minimum Income Guarantee for people over State Pension age will also rise by 3.8%
These increases aim to provide broader support across different age groups receiving care.
Wider Reform Plans for Adult Social Care
The government has outlined longer-term reforms to the adult social care system in England. An independent commission, chaired by Louise Casey, has been tasked with reviewing the system and proposing improvements.
In addition, a wider funding boost of £4.6 billion has been pledged by 2028–2029. This package includes:
- £500 million for a fair pay agreement for care workers
- The creation of a new negotiating body for pay and working conditions
- Improved training and qualifications
- A new national career structure for carers
The fair pay agreement aims to address workforce shortages and improve conditions in a sector that has historically struggled with low pay and retention challenges.
Why These Changes Matter
For many disabled adults and their families, social care charges have placed significant strain on household budgets. The 7% increase to the Minimum Income Guarantee provides additional breathing space and helps protect essential income.
At the same time, investment in home adaptations supports long-term independence and reduces reliance on hospital care. While the reforms do not eliminate all financial pressures, they represent a meaningful step toward a more stable and supportive care system.