The Department for Work and Pensions (DWP) has confirmed a significant change to Carer's Allowance that will take effect in 2026, enabling thousands of additional individuals to claim the benefit. This adjustment is set to expand eligibility and provide greater financial support to unpaid carers across the UK.
What Is Carer's Allowance?
Carer's Allowance is a benefit paid to people who spend at least 35 hours per week caring for someone who receives certain disability-related benefits. Currently, claimants can receive £86.45 per week if they meet the eligibility criteria. The benefit is available regardless of whether the carer is related to the person they care for or lives with them. Only one person can claim Carer's Allowance for the same individual at any given time. According to the DWP, over one million people already receive this benefit across the UK.
The Major Change: Increased Earnings Threshold
Speaking to BBC Radio 5 Live, Social Security and Disability Minister Sir Stephen Timms highlighted the vital role of unpaid carers and explained the change. He stated: "We owe a huge amount to all these unpaid carers. They're doing a fantastic job, obviously, looking after the people who they're caring for, but actually, they're doing a great job for all of us, and we want to do a better job in supporting them."
The key change is an increase in the earnings threshold. Currently, claimants can earn up to a certain amount and still receive Carer's Allowance; exceeding that threshold disqualifies them. By raising this threshold, an additional 60,000 carers will become eligible, on top of the over one million already claiming. Sir Stephen noted that Carer's Allowance is not the only financial support available, with additional help provided through Universal Credit and Pension Credit.
Eligibility Criteria for Carer's Allowance
To qualify for Carer's Allowance, individuals must be aged 16 or over and spend at least 35 hours each week caring for someone. The person being cared for must receive a qualifying benefit, such as:
- The daily living component of Personal Independence Payment (PIP)
- Attendance Allowance
- The daily living component of Adult Disability Payment
- The middle or highest care rate of Disability Living Allowance
- Several other disability-related benefits
Claimants must usually have lived in England, Scotland, or Wales for at least two of the last three years, not be in full-time education, and not be studying for 21 hours per week or more. Additionally, earnings must be £204 or less per week after tax, National Insurance, and allowable expenses. Deductible costs include 50% of pension contributions, specialist equipment needed for work, travel between workplaces, and certain childcare or care costs.
Additional Benefits and Considerations
People receiving Carer's Allowance automatically receive National Insurance credits, which can help build entitlement towards the State Pension and other benefits. Additional support may be available through Universal Credit, Pension Credit, Council Tax Reduction schemes, local council support, and grants for education or training.
However, claiming Carer's Allowance can affect other benefits. The person being cared for may lose payments such as the severe disability premium or an additional amount for severe disability in Pension Credit. Carer's Allowance can also impact the claimant's own benefits, though overall benefit income usually increases or stays the same. Universal Credit payments are typically reduced by an amount equal to the Carer's Allowance payment. Those receiving a State Pension cannot normally receive the full amount of both benefits simultaneously; if the State Pension exceeds £86.45 per week, Carer's Allowance may not be paid, though other benefits like Pension Credit may increase.
Overpayment Reassessment
The DWP has also confirmed it is reassessing Carer's Allowance overpayments that occurred between April 10, 2015, and September 2, 2025. Affected individuals may have debts reduced or cancelled, and some could receive refunds. The department states that claimants do not need to contact the Carer's Allowance Unit; they will be contacted directly if necessary.
Scottish Residents
In Scotland, individuals must apply for Carer Support Payment instead of Carer's Allowance. Those moving from England or Wales to Scotland must inform the DWP and make a new claim for Carer Support Payment.
For more information about Carer's Allowance, including eligibility rules and how to apply, visit the GOV.UK website.
