Government launches review of Carer’s Allowance to explore benefit reforms

The Government has launched a six-week call for evidence on the future of Carer’s Allowance, seeking views on reforms to modernise the benefit and better support unpaid carers.

The review will examine changes including modernising the earnings limit, improving support for carers with fluctuating incomes and considering whether to introduce an earnings taper to reduce the current “cliff edge” where entitlement is lost once the earnings threshold is exceeded.

The consultation, which runs until the 18th August, is the first major review of Carer’s Allowance since the benefit was introduced in 1976.

The Department for Work and Pensions (DWP) said the evidence gathered would inform future reforms, following recommendations made in the Sayce Review, which found the current system did not reflect modern working patterns and left some carers unknowingly building up debts.

The Government has already increased the weekly earnings limit to £204, allowing carers to earn around £10,000 a year while retaining their entitlement, alongside updating guidance and reviewing around 200,000 Carer’s Allowance cases.

Sir Stephen Timms, minister for social security and disability, said: “Unpaid carers are the backbone of our communities — quietly providing support that makes an enormous difference to the lives of those they love.

“They deserve a system and level of support that properly reflects the contribution they make, and we are determined to deliver that.

“This call for evidence is our commitment to going further — and to making sure carers’ voices shape every step of what comes next.”