Carer’s Allowance earnings limit to be tapered
2 mins read
Tuesday 27 October 2026
Unpaid carers will no longer lose their entire Carer’s Allowance award if they go over the weekly earnings limit, the government have announced.
In a huge win for our parent carer campaigners, the Carer’s Allowance earnings limit will become tapered. Carers will lose £1 of their award for every £1 they earn over the limit, currently £204 a week.
Contact has long called for this change. Currently carers lose their entire Carer’s Allowance award if they earn even 1p over the limit.
This announcement follows a government review into the main benefit for carers following a number of overpayments made to carers. The change will be implemented in 2030.
Derek Sinclair, our senior benefits adviser, said:
“Tapering the earnings limit is a welcome step towards a fairer system. It will allow carers to earn slightly more without fear they are going to lose their entire Carer’s Allowance and face punitive overpayments.
“Contact’s own research found that half of families with disabled children who had to repay Carer’s Allowance due to the earnings cliff-edge stopped claiming as a result. This was despite continuing to care significantly more than 35 hours each week.
“However, parent carers continue to face significant financial pressures. For those receiving Universal Credit, Carer’s Allowance will still be deducted pound for pound. With the new taper not due until 2030, further improvements to carers’ benefits are badly needed.”