More than 60,000 additional unpaid carers in the UK will become eligible for Carer's Allowance following a change to the earnings threshold, the Department for Work and Pensions (DWP) has confirmed. Minister for Social Security and Disability Sir Stephen Timms announced the update, stating the DWP wants to 'do a better job' supporting those who provide unpaid care.
Earnings Threshold Raised to £204 Per Week
In April 2026, the earnings threshold for Carer's Allowance was increased from £196 to £204 per week. This means claimants can now earn up to £204 weekly without losing their benefit payment. Sir Stephen confirmed that this change alone will result in 'an extra 60,000 carers being able to claim'. He emphasised that the DWP is committed to improving support for unpaid carers, who he described as doing 'a fantastic job' for both the people they care for and society as a whole.
Flat Rate Payment and No Tapering System
Carer's Allowance is paid at a flat rate of £86.45 per week. However, there is no tapering system in place, meaning that earning even £1 over the threshold results in the entire payment being stopped. Earnings that count towards the threshold include income from employment and self-employment, calculated after tax, National Insurance, and allowable expenses such as pension contributions, work equipment, or business expenses for the self-employed.
Certain types of income do not count towards the earnings limit. These include money from an occupational or private pension, contributions from someone living with the carer toward living costs (provided they are not a tenant or boarder), the first £20 per week plus 50% of any additional income from boarders, and loans or advance payments from employers.
Additional Support Available
Sir Stephen noted that Carer's Allowance is not the only financial support available. Over one million people currently receive the benefit, but additional support is available through Universal Credit for working-age claimants and Pension Credit for those above state pension age. Other forms of assistance unpaid carers may be eligible for include help from local councils, Council Tax reductions, some grants and bursaries for courses or training, and other means-tested benefits.
The DWP has reiterated its commitment to strengthening support for unpaid carers, with Sir Stephen stating: 'We owe a huge amount to these unpaid carers. They're doing a fantastic job obviously looking after the people who they're caring but actually they're doing a great job for all of us and we want to do a better job in supporting them.'
