The earnings limit for Carer’s Allowance will increase from £151 per week to £196 per week from 7 April 2025. This change will allow working carers on low incomes to earn up to £2,340 more per year while continuing to receive the benefit.
Carer’s Allowance is available to those who provide at least 35 hours of unpaid care each week for someone who is disabled, ill or elderly. Charity Carers UK has welcomed the increase, which is the largest rise in the earnings limit since the benefit was introduced in 1976. The organisation estimates that the change will enable 60,000 more carers to qualify for Carer’s Allowance.
Despite this, concerns remain over government proposals to amend eligibility for Personal Independence Payment (PIP), a benefit that determines access to Carer’s Allowance for many claimants. According to Carers UK, these proposed changes could result in 150,000 people losing their Carer’s Allowance by 2029/30.
The Carer’s Allowance weekly payment will also rise by 1.7% in April 2025, increasing from £81.90 to £83.30. This remains the lowest benefit of its kind and, as Carers UK points out, is now worth less than the price of a first-class postage stamp.
Call for Long-Term Reform
Carers UK has repeatedly called for the earnings limit to be tied to the National Living Wage, ensuring that carers do not need to reduce their working hours whenever the wage threshold rises. The charity argues that a formal link between Carer’s Allowance and the National Living Wage is necessary to provide financial stability for those balancing work and unpaid care.
While the increase in the earnings limit will help carers remain in employment, those unable to work due to the intensity of their caring responsibilities will see little improvement in financial support. There are currently 1.2 million carers in poverty across the UK, with 42% of those receiving Carer’s Allowance struggling to make ends meet.
Carers UK Chief Executive Helen Walker commented on the changes, saying, “Unfortunately, we are looking at a game of two halves. Last year in the 2024 Autumn Budget we welcomed news that the limit on Carer’s Allowance would rise, which is a much-needed step forward, helping carers in employment on a low income to increase their earning potential.”
Long Overdue
She noted that many carers have had to cut back hours, switch jobs or leave employment altogether due to the existing earnings cap. While the new threshold provides greater flexibility for some, she warned that upcoming welfare reforms could undermine progress.
“Carers’ benefits are long overdue for reform. We welcome the rise in the earnings limit whilst acknowledging that many carers remain under huge financial pressure, including those who are not able to combine caring with paid work due to the intensity of their caring role. A full review of Carer’s Allowance, including the eligibility criteria, is needed urgently to ensure it provides adequate, long-lasting support.”
As the government moves forward with welfare reform, organisations such as Carers UK continue to push for comprehensive changes that address the financial challenges faced by unpaid carers across the country.
