The Department for Work and Pensions (DWP) has announced a significant change to a key benefit claimed by an estimated 1.3 million people across the UK. From April 2026, individuals receiving Carer's Allowance will be able to earn more money from employment without having their payments stopped.
Key Changes to the Earnings Threshold
Currently, carers who qualify for the weekly allowance face a strict earnings limit. If they earn more than £196 per week from a job, they risk losing their entitlement to the benefit entirely. However, the DWP has confirmed that from April 2026, this threshold will be raised to £204 per week.
This marks the first time the earnings limit has surpassed the £200 per week mark. Simultaneously, the weekly Carer's Allowance payment itself is set to increase from £83.30 to £86.45. Over a full year, this equates to an annual support total of £4,449 for eligible claimants.
Impact on Working Carers
The adjustment is designed to support the many individuals who juggle employment with substantial caring responsibilities. To qualify for Carer's Allowance, a person must provide care for at least 35 hours per week to someone in need. The benefit is paid directly into a bank, building society, or credit union account to help with the extra costs associated with caring.
Helen Walker, Chief Executive of Carers UK, welcomed the increase. "This is a welcome increase for the many people juggling work and care," she stated. She also highlighted that the government's decision to link the threshold to 16 times the National Living Wage provides clarity and prevents carers from having to reduce their working hours when wages rise.
Calls for Further Reform
Despite the positive step, campaigners argue that more comprehensive support is urgently needed. Carers UK points out that Carer's Allowance remains the lowest benefit of its kind. A staggering 62% of carers receiving the allowance live in poverty, and 90% do not believe it offers sufficient financial support.
The organisation continues to call for a full review of Carer's Allowance, including its eligibility criteria, to ensure it provides sustainable, long-term support. It is important to note that as a taxable benefit, receiving Carer's Allowance can affect the amount a person receives from other benefits, such as Universal Credit.
This change represents a direct financial boost for over a million people providing essential care across the country, offering them greater flexibility to supplement their income through work.
