Views sought to transform benefit paid to carers

Unpaid carers and their organisations are being invited to share their views on how to improve Carer’s Allowance, as part of the first major review of the benefit since it was first introduced half a century ago.

Issues with the Carer’s Allowance system inherited by the Government were laid bare in the landmark Sayce Review. This found unclear guidance on averaging fluctuating earnings left carers building up debts without realising, and that the earnings limit had failed to keep pace with modern working patterns.

The Government has already raised the weekly earnings limit to a record £204 a week, updated guidance, and taken decisive action to address the failures the Sayce Review identified. Carers can now earn around £10,000 a year while keeping their support.

This call for evidence goes further by looking at whether to introduce an earnings taper and changes to rules that cap how many hours a carer can work before losing their benefit, to reflect modern caring patterns.

Minister for Social Security and Disability Sir Stephen Timms said:

Unpaid carers are the backbone of our communities — quietly providing support that makes an enormous difference to the lives of those they love.

They deserve a system and level of support that properly reflects the contribution they make, and we are determined to deliver that.

This call for evidence is our commitment to going further — and to making sure carers’ voices shape every step of what comes next.

Earlier this year, the DWP launched a reassessment exercise reviewing 200,000 cases — with around 25,000 cases set to see debts reduced, cancelled, or refunded. New capital disregard regulations coming into force next week will ensure those refunds do not affect entitlement to Universal Credit, Pension Credit or Housing Benefit.

Emily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, said:

We need to see further reform to Carer’s Allowance because the current system is outdated and no longer reflects the realities of caring today. This includes inflexible rules around the earnings limit which are hard to navigate for carers with fluctuating earnings and can dissuade some from claiming what they are entitled to altogether.

We welcome the government’s call to gather further evidence around this and its acknowledgement that Carer’s Allowance, which was first introduced 50 years ago, should be a priority for change to better support those who contribute so much to society. Caring is not a one-size-fits-all experience, and so it’s important that the government hears from as many people as possible on this topic in the next six weeks.

Carer’s Allowance has supported carers and their loved ones since 1976 — but it hasn’t kept pace with how people work today. This call for evidence is the next step in changing that.

Carers, their organisations, and anyone with experience of caring are encouraged to have their say before the call for evidence closes on 18 August 2026.

The evidence gathered will inform future changes the government makes to Carer’s Allowance – putting carers voices at the heart of the effort to build a benefit that is fair, modern and reliable for the people who depend on it most.

Kirsty McHugh, CEO of Carers Trust said:

This major review of Carer’s Allowance is something we, carers, and the 130+ local carer services in our network have long called for. It has been clear for some time that Carer’s Allowance needs to be modernised and brought into the twenty-first century. Society, work and caring have all been thoroughly transformed since Carer’s Allowance was first introduced in 1976, so it’s incredibly encouraging that the Government has recognised this and committed to creating a system that not only reflects these changes but also gives carers the support they really need.

We look forward to working with the Department for Work and Pensions to ensure the voices of carers and the services dedicated to them are at the heart of any reforms to Carer’s Allowance. We want this review to be a real step change in the way carers are supported – paving the way for a fairer world for carers.

Additional information

• The call for evidence covers modern patterns of care that were not in place when Carer’s Allowance was introduced in 1976.
• Carer’s Allowance is available in England and Wales only, but views and experiences are sought from anyone in the UK.
• Carer’s Allowance is a devolved matter in Scotland. It has been fully replaced by the Scottish Government’s Carer Support Payment.
• Social security is a transferred matter in Northern Ireland, but the Department for Communities there maintains parity with DWP.
• The call for evidence is open to all respondents via GOV.UK, and is available in a range of accessible formats. It will also be supported by targeted stakeholder engagement: Carer’s Allowance: call for evidence – GOV.UK

SOURCE: GOV