Unpaid carers across the country are being asked to share their experiences as the government opens a six-week consultation into overhauling Carer’s Allowance, the first review of its kind since the benefit was introduced 50 years ago.
The call for evidence, which opened today, will examine how to modernise the earnings limit that has long been criticised for creating a “cliff edge” effect, where carers can lose their entire allowance for earning just a few pounds over the threshold.
Ministers are also looking at ways to give carers with irregular incomes more predictability, and at how the system could better support people juggling paid work alongside caring duties.
The review follows the Sayce Review, which exposed serious flaws in how the benefit has been run, including confusing guidance that left carers unknowingly falling into debt, and rules that had failed to keep up with modern working life.
Since then, the government says it has already raised the weekly earnings limit to £204 — a record high that allows carers to earn roughly £10,000 a year without losing support. The new consultation goes further, asking whether an earnings taper should be introduced and whether the current cap on working hours should be relaxed.
Sir Stephen Timms, Minister for Social Security and Disability, said unpaid carers form the backbone of communities, providing vital support that is often invisible. He said the review reflects a commitment to ensuring carers’ voices help shape future reform.
Campaigners have welcomed the move. Carers UK said the current system is outdated and poorly suited to those with fluctuating earnings, warning that its complexity can put people off claiming support they are entitled to. Carers Trust, which represents more than 130 local carer services, said the review was long overdue and called for a system that properly reflects how much society, work and caring patterns have changed since 1976.
Alongside the consultation, the Department for Work and Pensions is continuing a separate reassessment of 200,000 Carer’s Allowance cases, with an estimated 25,000 carers expected to have debts reduced, cancelled or refunded. New rules coming into force next week will ensure any refunds do not affect people’s entitlement to Universal Credit, Pension Credit or Housing Benefit.
Carer’s Allowance applies in England and Wales, though the government is inviting views from carers across the whole of the UK. In Scotland, the benefit has been replaced by the Carer Support Payment, while Northern Ireland’s Department for Communities maintains a parallel system.
The consultation is open to carers, care recipients and support organisations via GOV.UK, with accessible formats available. It closes on 18 August 2026.
For more details go to: https://www.gov.uk/government/calls-for-evidence/carers-allowance-call-for-evidence/carers-allowance-call-for-evidence
