The Department for Work and Pensions (DWP) has launched a six-week call for evidence, inviting unpaid carers, charities, and other organisations to share their experiences and views on how Carer's Allowance could be improved. The online consultation will help inform potential reforms to the benefit, which currently pays £86.45 a week to eligible carers who provide at least 35 hours of care each week for someone with a disability, long-term health condition, or care needs.
Key Areas Under Review
The UK Government is seeking views on several key areas, including reforming the current earnings limit, making payments more predictable for carers with fluctuating incomes, improving how Carer's Allowance works alongside Universal Credit, and reviewing the 21-hour study rule. One of the biggest issues under review is the current earnings limit. At the moment, carers who earn more than the weekly threshold can lose their entire Carer's Allowance payment for that week, leading to calls for a more flexible system that gradually reduces payments instead of stopping them altogether.
The Government is also asking for feedback on how carers with irregular incomes can be better supported, as well as whether the rules preventing people studying for more than 21 hours a week from claiming Carer's Allowance should be changed. In addition to the specific proposals, carers are being invited to highlight any other issues they believe should be considered as part of the review.
Impact on Carers Across the UK
Emily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, welcomed the consultation, describing it as an important opportunity for unpaid carers to influence future policy. She said: "This call for evidence from the Government is hugely important, signalling very clearly that it wants to hear carers' experiences to help build a more modern benefit and a system that meets their needs." She added that Carer's Allowance no longer reflects the realities of caring today and argued that the current rules can create unnecessary financial uncertainty for unpaid carers. Highlighting the earnings limit, she said: "The current cliff edge means that if you earn just a penny over the earnings limit, you lose your entire benefit for that week."
Carers UK has campaigned for changes to Carer's Allowance for many years, arguing that the benefit has failed to keep pace with modern caring responsibilities and that greater flexibility would help more people balance work, education, and caring commitments. The charity is also calling for reforms to the 21-hour study rule, saying it prevents many carers from gaining qualifications or improving their skills while continuing in their caring role.
Consultation Details and Scope
While the DWP consultation is open to people across the UK until August 18, any reforms would only apply to Carer's Allowance in England and Wales. It is important to note that Carer's Allowance has been replaced in Scotland by Carer Support Payment, which is delivered by Social Security Scotland. The consultation is available on GOV.UK, and unpaid carers are strongly encouraged to participate to help shape the future of the benefit.
