Change to carer’s allowance cliff-edge rule is not enough, victims say
Digital taper system for benefit expected in budget, but those already hit with overpayments will still have to pay “On the surface it sounds really positive – and I really hope th
By The Guardian
The planned abolition of the Carer’s Allowance earnings cliff edge will not help unpaid carers who have already been landed with overpayment debts, campaigners say.
The Government is expected to announce a new digital taper system in the Budget on Wednesday, 28 October. Under the proposed system, Carer’s Allowance would be reduced by £1 for every £1 earned above the weekly limit, rather than being withdrawn in full.
The current rules mean carers lose their entire weekly payment if their earnings exceed the limit by even a penny. The threshold is currently £204 a week, while the weekly allowance is £86.45.
However, the new system is not expected to be fully operational until 2030 because of the technical work required. Until then, carers will remain subject to the existing cliff-edge rules.
Unpaid carer Guy Shahar welcomed the proposed change but said it did not go far enough. He was also angry that most carers who had already received overpayments would still be expected to repay the money.
An independent review by disability rights expert Liz Sayce found that about 180,000 carers built up overpayment debts between 2019 and 2025. The debts were estimated to total £300m.
Some carers had accumulated debts after exceeding the earnings limit by only a few pence, with the problem sometimes going unnoticed for long periods.
The Government’s announcement follows concerns about the effect of the rules on carers who work while looking after relatives or other people who need support.
Under the planned taper, carers would keep their allowance up to the earnings threshold and then lose £1 of benefit for each additional £1 earned. The existing system will remain in force until the replacement is introduced.