A significant rule change being demanded of the Department for Work and Pensions (DWP) could make a popular benefit fully available to people over the state pension age.
Petition Calls for End to Benefit Clash
An official petition on the UK Parliament's website is calling on the government to ensure that individuals receiving Carer’s Allowance continue to get it at the full amount even when they start claiming the state pension. The petition argues that people who provide unpaid care while being of pension age should be eligible for both payments in full.
Currently, the system creates a financial penalty for many older carers. If your State Pension is less than the Carer's Allowance rate, you will receive a payment to make up the difference. However, if your State Pension is more than the Carer's Allowance, you do not get a Carer's Allowance payment at all.
The petition states: "People in receipt of the state pension can lose the ability to claim carer’s allowance. We feel that people who reach the state pension age and provide care should be eligible for both." It also highlights the immense value provided by unpaid carers, who save taxpayers substantial sums.
Current Rules and the 'Cliff-Edge' Problem
Under the present regulations, pensioners who cannot receive a Carer's Allowance payment due to their state pension amount can still apply for an 'underlying entitlement'. This may help to increase other means-tested benefits they receive, such as Pension Credit.
In a separate but related development, the earnings limit for carers has recently been increased. Announced by Labour Chancellor Rachel Reeves in the Autumn Budget, the change means that from 7 April 2025, unpaid carers will be able to earn £45 more per week without losing their entitlement.
The earnings threshold will rise from £151 to £196. Despite this positive step, a major issue known as the 'cliff-edge' remains. Ms Reeves has expressed concern about this, as unlike most other benefits, Carer’s Allowance is withdrawn entirely if a carer earns even a single penny over the limit; it does not taper off gradually.
Potential Path to Parliamentary Debate
The online petition has the potential to force a government response and even a parliamentary debate. According to official rules, at 10,000 signatures, the government is obliged to respond to the petition's demands.
If the petition gathers 100,000 signatures, it will be considered for a full debate in Parliament, putting significant pressure on the DWP to address the issue of carers over state pension age and potentially leading to a major overhaul of the current benefit rules.
