The Department for Work and Pensions (DWP) has launched a six-week call for evidence, proposing three rule changes to Carer's Allowance, a benefit claimed by 1.4 million people. The consultation aims to modernise the system, reduce overpayments, and better support carers balancing work and caring responsibilities.
Proposed Changes to Carer's Allowance
The three options under consideration include: changing the Carer's Allowance earnings limit, introducing a more predictable approach to averaging earnings, and scrapping the current case-by-case assessment method. Currently, where earnings vary weekly, the DWP may look for a pattern and average earnings over time, which can be difficult for carers to understand and predict.
Call for Evidence and Public Input
The DWP has urged claimants and representative organisations to have their say during the six-week consultation period. The department stated that the review is aimed at reflecting modern patterns of care, work, and earnings, supporting carers to balance paid work and caring responsibilities, ensuring the system is clear and easy to understand, and maintaining fairness and value for money for taxpayers.
Background and Overpayments Issue
An Independent Review into Carer's Allowance overpayments revealed mistakes made by the previous government, leading to unexpected overpayments and uncertainty for carers. The DWP has already taken steps to improve the system, including linking the weekly earnings limit to 16 times the hourly National Living Wage, updating decision maker guidance, and improving customer letters and communications.
According to the DWP: "Unpaid carers make a vital contribution to our communities and our country, providing care and support to family members and loved ones, often alongside other responsibilities. Carer's Allowance plays an important role in recognising that contribution. But we know the system has not always worked as well as it should."
Modernisation and Future Decisions
The DWP added: "We want to build our evidence base to understand better how Carer's Allowance can support carers to balance work and caring responsibilities, while remaining clear, fair and sustainable. We are seeking views and evidence to help us consider how Carer's Allowance could be modernised, including through an earnings taper, the role of the earnings rules and how they operate in practice."
Carer's Allowance was introduced in 1976, and the DWP notes that while it has supported carers and their loved ones, it hasn't kept up with changes in how people work today. Many carers want the flexibility to combine some paid work with their caring responsibilities. The consultation will inform any future decisions on the benefit.
