Carers have days left to act as DWP plans major benefits shake-up

Unpaid carers have been given a fresh chance to shape the future of Carer’s Allowance as the Government looks at overhauling rules that have remained largely unchanged for decades.

The six-week call for evidence is examining whether the current system should be modernised to better reflect the way people work and provide care today.

Among the ideas being considered is an earnings taper, which could soften the sharp cut-off faced by carers who earn above the current limit.

The Government is also looking at ways to make the rules more predictable for people whose earnings fluctuate and to better support carers who combine employment with caring responsibilities.

The review is the first major examination of Carer’s Allowance since the benefit was introduced in 1976.

Carer’s Allowance rules could change

The current earnings rules have come under fire for creating a so-called cliff edge, meaning carers can risk losing their benefit if their earnings go above the limit.

A previous review found that unclear guidance around averaging fluctuating earnings had also left some carers facing debts without realising they had breached the rules.

The Government has already increased the weekly earnings limit to a record £204, meaning eligible carers can now earn around £10,000 a year while continuing to receive support.

Stephen Timms (Image: House of Commons/Jessica Taylor)

But ministers are now considering whether further changes are needed.

One proposal is an earnings taper, which could mean Carer’s Allowance is gradually affected as earnings rise rather than being lost abruptly.

The Government is also considering changes to rules around how many hours carers can work while receiving the benefit.

Sir Stephen Timms, Minister for Social Security and Disability, said unpaid carers were the “backbone of our communities” and deserved a system that reflected the contribution they make.

He said the Government wanted carers’ voices to shape the next stage of reform.

One week left.

Tamara Sandoul, Head of Policy and Public Affairs at Carers UK, wants carers’ voices heard before our Call for Evidence on Carer’s Allowance closes.

Have your say now: https://t.co/heaULLmdPk #Carers #CarersAllowance pic.twitter.com/NHYf16BPyu

— Department for Work and Pensions (@DWPgovuk) August 13, 2026

How to have your say

The call for evidence is open to carers, carers’ organisations and anyone with experience of caring.

People in Scotland can also submit their views, although Carer’s Allowance has been replaced there by the Scottish Government’s Carer Support Payment.

The consultation closes on August 18 2026, with responses expected to help shape future changes to Carer’s Allowance. See the details of how to do that here.

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Thousands of carers could also benefit from debt changes

The review comes after the DWP launched a reassessment of around 200,000 Carer’s Allowance cases earlier this year.

Around 25,000 cases are expected to have debts reduced, cancelled or refunded as part of the exercise.

New rules on capital disregards are also due to ensure refunds do not affect entitlement to benefits including Universal Credit, Pension Credit or Housing Benefit.

Carers UK welcomed the review, saying the existing system was outdated and could be difficult for people with fluctuating earnings to navigate.

Carers Trust also backed the move, pointing out that society, employment and caring have changed dramatically since Carer’s Allowance was introduced 50 years ago.