The Government has today launched a Call for Evidence on the modernisation and reform of Carer’s Allowance. This is available on GOV.UK and accessible format versions will be available on request.
Modernising for the future
Carer’s Allowance was introduced in 1976 and has not kept pace with changes in how people balance work and caring responsibilities. Many carers want the flexibility to combine some paid work with their caring responsibilities.
We have taken steps to improve the system, including increasing the Carer’s Allowance earnings limit to align with 16 hours at the National Living Wage, improving guidance for staff and customers, and strengthening processes to identify and prevent overpayments earlier.
But we recognise there is more to do and are therefore considering how the benefit can be modernised for the future, including reforms such as an earnings taper and automating the calculation of earnings where possible using data collected by HMRC.
Building the evidence base
This Call for Evidence is an important next step in that process. We are seeking views and evidence to better understand how Carer’s Allowance can:
support carers to balance paid work and caring responsibilities;ensure the system is clear and easy to understand;maintain fairness and value for money for taxpayers.Evidence gathered through this exercise will inform future policy development. We are particularly interested in views on the current earnings rules, including the earnings limit and whether a more predictable approach to how earnings are averaged would better support carers.
We will consider the wider fiscal impacts of reforms and the need to ensure that support is targeted effectively.
We want to hear from carers, representative organisations and others with relevant experience to shape our understanding and inform next steps.
https://www.theyworkforyou.com/wms/?id=2026-07-07.hcws190.0
seen at 09:56, 8 July in Written Ministerial Statements.