Government to scrap cliff edge in Carers' Allowance earnings rule

Summarised from 2 outlets · Updated 27 Oct, 14:32 · Archive

The Government is expected to replace Carers' Allowance's sudden loss of benefits with a gradual taper system. Currently, carers can lose their entire benefit if their earnings exceed the threshold, even by a small amount. Campaigners have described the sudden loss of support as a scandal, with the rule leaving some unpaid carers facing a sharp financial hit after taking on extra work.

Under the expected change, the benefit would instead be reduced gradually by £1 for every additional pound earned, avoiding the immediate loss of the entire payment when the limit is breached. Chancellor John Healey is expected to introduce this change as part of a package of cost-of-living measures announced on the eve of Wednesday's Budget.

Prime Minister Andy Burnham said: 'We are taking on the big challenges facing the country but that doesn't mean losing sight of the everyday problems that cost people money or simply aren't fair.' The Government has also outlined other measures intended to help households and businesses, including changes to mileage allowances, cheaper food imports and expanded parental pay.

How it is being reported

• Budget shake-up expected to bring major DWP benefit changes for householdsCarers could see a major change to Carers’ Allowance as the Government moves to end a controversial earnings rule that can strip people of their entire benefit for earning just a few pence too much.Reading Chronicle · 27 Oct, 14:06
• Budget shake-up expected to bring major DWP benefit changes for householdsCarers could see a major change to Carers’ Allowance as the Government moves to end a controversial earnings rule that can strip people of their entire benefit for earning just a few pence too much.Bracknell News · 27 Oct, 14:06

In this story: John Healey · Andy Burnham · Department for Work and Pensions

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