Carer's allowance cliff-edge rule to be abolished in budget

Summarised from 2 outlets · Updated 27 Oct, 09:57 · Archive

The government is scrapping the controversial cliff-edge rule for carer's allowance that penalised carers for earning even a penny over the weekly limit.

The government is to scrap the cliff-edge rule for carer's allowance, which has penalised hundreds of thousands of unpaid carers with substantial debts. Under the current system, those receiving carer's allowance lose their entire weekly entitlement of £86.45 if they earn even a penny over the £204 weekly earnings limit. The Guardian reports that a carer who earned just 52p over the limit across a year would be asked to repay £4,495.40.

The new system will instead use a digital taper, meaning carers would lose £1 from their benefit for every £1 earned over the threshold, rather than forfeiting the entire payment. The changes are due to take effect from the 2030/31 financial year. Both outlets note that the overpayment debts from the current system have sometimes gone undetected for years, with carers facing typical debts of £2,000 to £5,000, though some exceeded £20,000. The Guardian reports that welfare officials pursued some carers using legislation designed to recover funds from drug dealers and organised crime bosses, and some carers were convicted of fraud.

Carer's allowance is claimed by around 1.4 million people. It is worth £86.45 a week in England, Northern Ireland and Wales, or up to £98.15 a week in Scotland. The Mirror reports that the government announced earlier this year that carers affected by overpayment debts would have them reduced, cancelled or refunded.

How it is being reported

• 'Cliff edge' benefit rule which punished unpaid carers is being axed - what it means for youCarer's Allowance is worth £86.45 a week in England, Northern Ireland and Wales, or up to £98.15 a week in Scotland, and is claimed by around 1.4 million peopleThe Mirror · 27 Oct, 09:35
• Carers allowed to earn over the weekly limit without losing out as ‘cliff-edge’ abolished in the budgetControversial mechanism that hit unpaid carers with huge penalties to be scrapped following Guardian investigation The controversial rule that led to unpaid carers being punished with penalties amounting to thousands of pounds is to be abolished, the Guardian can reveal. The chancellor, John Healey, is to announce a new digital taper system for the so-called carer’s allowance in Wednesday’s budget, effectively ending what is regarded as one of the UK benefit system’s most feared and unfair administrative practices. Continue reading...Guardian World · 26 Oct, 22:30

In this story: John Healey · Department for Work and Pensions · England · Wales · Scotland · Northern Ireland

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