The Government has opened a call for evidence on reforms to Carer’s Allowance, inviting unpaid carers and support organisations to set out how the benefit should be modernised after almost 50 years.
The Department for Work and Pensions said the exercise would inform future changes to the benefit, including whether to introduce an earnings taper and whether existing rules should be altered to better reflect modern caring and working patterns.
Carer’s Allowance was introduced in 1976 and remains one of the main forms of financial support for people who provide unpaid care. Ministers say the system has not kept pace with changes in employment, particularly for carers whose weekly earnings vary or who combine paid work with substantial caring responsibilities.
The call for evidence follows the Sayce Review, which examined problems in the Carer’s Allowance system. According to the Government, the review found that unclear guidance on averaging fluctuating earnings had contributed to some carers building up debts without realising they had breached the rules. It also identified concerns that the earnings limit had not adapted to current working arrangements.
The Government has already increased the weekly earnings limit to £204, which it says allows carers to earn around £10,000 a year while retaining support. It has also updated guidance and begun a reassessment exercise covering 200,000 cases where overpayments may have arisen.
As part of that exercise, the DWP expects around 25,000 cases to result in debts being reduced, cancelled or refunded. New capital disregard regulations due to come into force next week are intended to ensure that any refunds do not affect entitlement to Universal Credit, Pension Credit or Housing Benefit.
The latest consultation will look beyond those immediate changes. The DWP is seeking views on whether a more gradual reduction in entitlement should replace the current cliff edge approach linked to earnings. Under a taper, carers could potentially lose support more gradually as income rises, although no final policy has been set out.
The department is also asking for evidence on rules that can restrict the amount of paid work a carer can do before losing entitlement. Ministers say the review is intended to reflect the fact that many people now have irregular hours, changing shifts or mixed employment and caring responsibilities.
In its announcement, the Government said unpaid carers provide essential support in communities and should have a system that reflects their contribution. It said carers’ views would shape the next stage of reform.
Organisations representing carers have long argued that the current arrangements are difficult to navigate, particularly for people with variable earnings. The Government said the call for evidence had been welcomed by carer groups, which have called for a system that better reflects the different circumstances in which people provide care.
The review is also expected to consider the wider practical experience of claiming and retaining Carer’s Allowance. For many households, the benefit interacts with other parts of the welfare system, making clarity over earnings, reporting duties and overpayment rules central to whether carers feel able to claim support.
The DWP said the call for evidence is open to unpaid carers, organisations that work with carers, and anyone with experience of caring. Responses can be submitted through GOV.UK, with accessible formats available. The department also plans targeted engagement with stakeholders during the evidence-gathering period.
Although Carer’s Allowance is available in England and Wales, views are being sought from across the UK. Social security policy differs in the devolved nations. In Scotland, Carer’s Allowance has been replaced by the Scottish Government’s Carer Support Payment. In Northern Ireland, social security is transferred, but the Department for Communities maintains parity with the DWP.
The call for evidence will remain open until 18 August 2026. The Government says the responses will be used to shape future changes to Carer’s Allowance, with the stated aim of creating a system that is fairer, more reliable and better aligned with the way unpaid care is provided today.
