Government to end Carers' Allowance cliff edge by 2030/31

Summarised from 3 outlets · Updated 27 Oct, 13:58 · Archive

The Government plans to replace Carers' Allowance's earnings cliff edge with a taper system, reducing payments by £1 for every £1 earned above the threshold.

The Government has announced plans to end the earnings cliff edge for Carers' Allowance, replacing the current system with a taper. Under existing rules, unpaid carers lose their entire weekly payment if their earnings exceed the permitted limit by even a penny.

Carers' Allowance is currently paid to eligible people providing at least 35 hours of unpaid care a week. The current weekly payment is £86.45, but recipients can lose the entire amount if their earnings exceed £204 per week (after tax and National Insurance, subject to eligibility rules).

Under the new system, Carers' Allowance would instead be reduced by £1 for every £1 earned above the weekly threshold. Martin Lewis, founder of Money Saving Expert, declared 'hurrah' at the announcement and described it as 'very good news'. He said the issue was among those he discussed with Chancellor John Healey during a meeting a couple of months ago. Lewis explained the current system as unjust: 'You earn a penny more; it's all gone. That's why it is a cliff edge. It is unjust. It shouldn't work like that.'

The current rules have also caused problems for carers who unknowingly continue receiving payments after their earnings rise above the limit. This can happen when someone works an extra hour, receives a small pay rise or is affected by an increase in the minimum wage.

However, Lewis sounded a note of caution, warning that carers may have to wait until 2030/31 before the new system takes effect. The delay is reportedly linked to changes required to the IT system to prevent overpayments, meaning existing rules could remain in place for several more years.

How it is being reported

• Martin Lewis hails ‘very good news’ for unpaid carers ahead of BudgetMartin Lewis says “hurrah” as the Government promises to end the Carers’ Allowance cliff edge, in a run of cost-of-living announcements ahead of Budget 2026Romsey Advertiser · 27 Oct, 13:36
• Martin Lewis hails ‘very good news’ for unpaid carers ahead of BudgetMartin Lewis says “hurrah” as the Government promises to end the Carers’ Allowance cliff edge, in a run of cost-of-living announcements ahead of Budget 2026Andover Advertiser · 27 Oct, 13:36
• Martin Lewis hails ‘very good news’ for unpaid carers ahead of BudgetMartin Lewis says “hurrah” as the Government promises to end the Carers’ Allowance cliff edge, in a run of cost-of-living announcements ahead of Budget 2026Basingstoke Gazette · 27 Oct, 13:36

In this story: Martin Lewis · John Healey · Money Saving Expert

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log