Government plans to end Carers' Allowance cliff edge by 2030/31
Summarised from 2 outlets · Updated 29 Oct, 17:35 · Archive
The Government has announced plans to replace the Carers' Allowance cliff edge with a taper system, reducing benefits by £1 for every £1 earned above the threshold.
The Government has announced plans to end the controversial Carers' Allowance cliff edge, which currently penalises unpaid carers who earn slightly above the weekly threshold. Money Saving Expert founder Martin Lewis welcomed the announcement, saying it was 'very good news' and revealing it had been among issues he raised when he met Chancellor John Healey a couple of months ago.
The current system leaves carers facing the loss of their entire weekly benefit if their earnings exceed the £204-a-week limit by even a penny. Carers' Allowance is paid to eligible people who provide at least 35 hours of unpaid care a week, with the current weekly payment of £86.45. The Government plans to replace this with a taper system, reducing Carers' Allowance by £1 for every £1 earned above the weekly threshold.
However, Lewis warned that carers may have to wait until 2030/31 for the new system to come into effect, meaning the current rules will remain in place for several years. The delay is reportedly linked to the need to overhaul the IT system to prevent overpayments. Lewis said of the current arrangement: '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.'
How it is being reported
- Martin Lewis says 'hurrah' to ‘very good news’ ahead of major Budget announcementMartin 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 2026Reading Chronicle · 29 Oct, 17:07
- Martin Lewis says 'hurrah' to ‘very good news’ ahead of major Budget announcementMartin 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 2026Bracknell News · 29 Oct, 17:06
In this story: Martin Lewis · John Healey · Money Saving Expert
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