The government has announced a 7% increase to the Minimum Income Guarantee for working-age disabled adults who receive social care, delivering an average annual boost of around £400. More than 150,000 people are expected to benefit from the above-inflation rise, with those qualifying for the disability premium able to retain up to £510 extra each year.

The Minimum Income Guarantee sets the amount councils must leave individuals with for personal spending after they have contributed towards the cost of their home-based care. Ministers say the uplift will help people manage essential outgoings such as groceries, energy bills and other daily expenses, as part of wider efforts to reform adult social care and promote greater independence.

Care Minister Stephen Kinnock said the changes were aimed at easing financial strain on some of the most vulnerable in society. From April, he said, eligible adults would keep hundreds of pounds more of their income. The Personal Expenses Allowance for those in residential settings, along with the guarantee for people over 65, will rise by 3.8%.

Charities have offered a mixed response. Mencap welcomed the increase as progress, though it reiterated its call for social care to be free at the point of need. Disability Rights UK argued that the revised rate still falls short of what is required for a decent standard of living and urged a broader review of disability-related costs.