Hundreds of thousands more carers will keep more of a crucial benefit from this week. Carer’s Allowance is rising by 1.7% and the earnings threshold is also going up – meaning carers will be able to earn more money and still keep claiming this benefit.
The rate of Carer’s Allowance is rising from £81.90 to £83.30 a week. Meanwhile, the earning limits, which sets how much someone claiming Carer’s Allowance can earn in income, is increasing from £151 a week to £196 a week. It is estimated these changes mean 600,000 people will become eligible for Carer’s Allowance.
It comes after several reports revealed how unpaid carers were being forced to repay thousands of pounds in benefits after breaching this earnings rule by just a few pounds. If your earnings go over the limit – even by just £1 – you lose your entitlement to Carer’s Allowance.
For example, supermarket worker Helen Grater was told to pay back almost £6,000 after she took on an extra shift at Sainsbury’s while caring for her seriously unwell partner. Full-time carer and dad-of-three George Henderson was forced to sell his home – or face jail – after he was prosecuted because he was overpaid Carer’s Allowance.
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Carers say the rules for how much you earn can be confusing – particularly if your hours change, or your pay fluctuates. If your earnings vary each week, or each month, then your average earnings is used to determine your eligibility for Carer’s Allowance. Helen Walker, Chief Executive of Carers UK, said: “We know that the earnings limit is a barrier to taking on more work for carers. Some have cut back hours, switched jobs or even given up work completely.
“This will make a notable difference to many, but these changes now take place against the concerning backdrop of new welfare reforms announced in the 2025 Spring Statement. Carers’ benefits are long overdue for reform.
“We welcome the rise in the earnings limit whilst acknowledging that many carers remain under huge financial pressure, including those who are not able to combine caring with paid work due to the intensity of their caring role. A full review of Carer’s Allowance, including the eligibility criteria, is needed urgently to ensure it provides adequate, long-lasting support.”
Carer’s Allowance is paid to those providing at least 35 hours of care to someone who receives one from a list of qualifying benefits:
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