Overview
- Ministers confirmed in the Autumn Budget that the cliff-edge rule will be replaced by a taper that reduces Carer’s Allowance by £1 for every £1 earned above the weekly limit, with the change announced to take effect from Wednesday, Oct 28.
- Around 1.4 million claimants stand to benefit from the move because they will no longer forfeit a full week’s payment for earning a penny over the current £204 weekly threshold.
- Carer’s Allowance currently pays £86.45 a week and the cliff-edge has in some cases led to large overpayments and debts for carers, with reporting of individual debts reaching around £20,000.
- Charities including Carers Trust and Carers UK welcomed the reform and urged the government to use the change as a springboard for broader modernization, including how Carer’s Allowance interacts with Universal Credit and the 21-hour rule for young carers.
- Some commentators warned the practical rollout could be slower than the announcement because IT and payment systems must be changed, with one analyst saying full implementation might not be completed until 2030/31.