{"id":127707,"date":"2026-10-27T10:45:00","date_gmt":"2026-10-27T10:45:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=127707"},"modified":"2026-10-27T10:16:07","modified_gmt":"2026-10-27T10:16:07","slug":"carers-allowance-big-changes","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/carers-allowance-big-changes\/","title":{"rendered":"Carer\u2019s Allowance Warning: Big Changes Coming For Anyone Who Works"},"content":{"rendered":"\n

The UK Government is changing the Carer\u2019s Allowance earnings rule<\/strong> from Wednesday, ending a system that could see carers lose their entire payment after earning just a few pence above the weekly limit.<\/p>\n\n\n\n

The Carer\u2019s Allowance Cliff Edge Is Ending<\/h2>\n\n\n\n

Under the current rules, carers can lose their full weekly allowance if their earnings exceed the \u00a3204 limit<\/strong> by even a small amount.<\/p>\n\n\n\n

The system has been criticised by carers and support groups because a small pay rise or an extra shift could leave someone financially worse off.<\/p>\n\n\n\n

Chancellor John Healey<\/strong> said the current system had worked against carers who wanted to work more.<\/p>\n\n\n\n

Payments Will Be Reduced Gradually<\/h2>\n\n\n\n

The new system will replace the cliff edge with a gradual taper<\/strong>. This means Carer\u2019s Allowance will reduce as earnings rise rather than disappearing immediately after the income limit is exceeded.<\/p>\n\n\n\n

The change is intended to give carers more flexibility to take on additional hours or accept a modest pay rise without suddenly losing their entire benefit<\/a>.<\/p>\n\n\n\n

Government Responds To Carers\u2019 Concerns<\/h2>\n\n\n\n

Work and Pensions Secretary Pat McFadden<\/strong> said the government had listened to concerns from carers who could become financially worse off after working additional hours.<\/p>\n\n\n\n

The change is aimed at removing the sharp cutoff that currently applies when earnings pass the limit.<\/p>\n\n\n\n

Carers\u2019 Groups Welcome The Change<\/h2>\n\n\n\n

Carers Trust<\/strong> described the reform as an important change but called for a wider review of Carer\u2019s Allowance, reports Birminghammail.<\/a><\/p>\n\n\n\n

Carers UK also welcomed the move, saying a tapered system should give families more choice when combining paid work with caring responsibilities.<\/p>\n\n\n\n

The organisations have urged the government to use the reform as a starting point for further changes to the benefit.<\/p>\n\n\n\n

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Responding to the Government's scrapping of the 'cliff-edge' that stops carers receiving all Carers Allowance as soon as they exceed the earnings limit, Kirsty McHugh, Chief Executive of Carers Trust, said:

"It is great news that the Government is acting to remove the Carer\u2019s\u2026 pic.twitter.com\/UU9QsEcyPz<\/a><\/p>— Carers Trust (@CarersTrust) October 27, 2026<\/a><\/blockquote>