Carers Allowance budget announcement

In the autumn budget, the government announced that the current earnings ‘cliff edge’ in Carer's Allowance will be replaced by a 100% taper on earnings above the earnings limit. Rather than losing the entire benefit for exceeding the limit, carers will see their Carer's Allowance reduce gradually as earnings rise - £1 reduction for every £1 earned. The change is expected to benefit around 48,000 carers in England and Wales and is planned for 2030–31, following development of a new IT system.

Once introduced, a carer will no longer risk the sudden loss of their whole weekly Carer’s Allowance because of a small pay rise, an additional shift or fluctuating earnings. They can plan work with greater certainty and retain some Carer's Allowance when earnings move just above the threshold. This should give carers greater flexibility and confidence to work as much as they are able to alongside caring, without fear of losing their entire benefit for crossing the limit.

Find out more about Carers Allowance on our resources page  and for more information on other budget announcements which may affect unpaid carers visit Carers UK