Starting Monday, April 7, a significant change to the Carer’s Allowance will impact thousands of individuals across the UK. The Department for Work and Pensions (DWP) is raising the earnings threshold, allowing more carers to qualify for the benefit.
Manchester Evening News reports that the adjustment will affect up to 60,000 additional carers, marking a notable step forward in support for individuals balancing caregiving and employment.
What is Carer’s Allowance?
Carer’s Allowance is a weekly payment of £83 for individuals who care for someone for 35 hours or more per week. This benefit is available regardless of whether the carer lives with or is related to the person they care for. The current earnings limit stands at £151 per week, meaning carers who earn more than this amount lose their entitlement to the benefit.
The new rule will raise the earnings limit from £151 to £196 per week, allowing carers to earn up to £45 more and still receive the allowance. This adjustment means carers can now earn up to £10,000 annually while still being eligible for the weekly payments. The change has been described by the DWP as the largest increase to the benefit since it was introduced in 1976.
This increase in the earnings threshold represents 16 hours of work per week at the National Living Wage.
The Impact on Carers
The increase in the earnings threshold by the DWP is expected to benefit thousands of carers across the UK. However, the move has been met with mixed reactions.
While many are relieved that they will be able to earn more without losing their benefits, Carers UK has raised concerns over the broader welfare reforms, particularly the potential impact of Person Independence Payments (PIP) changes.
The charity noted that 150,000 carers could lose eligibility for Carer’s Allowance due to changes to PIP, which serves as a gateway benefit to the allowance.
Helen Walker, the chief executive of Carers UK, acknowledged the positive impact of the change but urged for wider reform of carer benefits to better support those in the role.
Helen Walker said :
Unfortunately, we are looking at a game of two halves. Last year in the 2024 Autumn Budget we welcomed news that the limit on Carer’s Allowance would rise, which is a much-needed step forward, helping carers in employment on a low income to increase their earning potential.
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.
Additional Changes to DWP Benefits
The increase in Carer’s Allowance earnings limit coincides with a general welfare benefits increase for several DWP programs, including PIP (Personal Independence Payment) and Universal Credit, which have risen by almost 2% in line with inflation, which was 1.7% in September 2024.
The government has also introduced increases to State Pension rates, with pensions set to rise by 4.1% this year, in line with the growth in average earnings, due to the triple lock promise.
