Carer's Allowance: UK Government's Call for Evidence

Carer’s Allowance provides a measure of financial support to people in England and Wales who are not able to work full time because of their caring responsibilities. For most, but not all people, it is complemented by support from Universal Credit or Pension Credit. To receive Carer’s Allowance, claimants must meet a number of conditions, including providing a minimum of 35 hours of care per week. Carer’s Allowance is not means-tested but applies an earnings limit of 16 times the hourly rate of the National Living Wage, (currently £204 per week), as an indirect way of ensuring that the disabled person is receiving the care they need. Universal Credit and Pension Credit also provide additional support for carers. Where someone receives more than one benefit, the interaction between them can affect overall entitlement. In practice, this can make the system complex and difficult to understand.

The UK Government has recently taken action to address issues identified in the Independent Review of Carer’s Allowance overpayments, including improving guidance and reviewing past overpayments. These issues included a lack of clarity in how earnings rules operated in practice, particularly for those with fluctuating incomes, which meant some carers were unaware they had exceeded the earnings limit.

The UK Government accepted or partially accepted 38 out of 40 of the Review’s recommendations and has begun implementing changes to improve the operation of the system.

The UK Government made a Call for Evidence asking for information and views on Carer’s Allowance to build on their existing evidence. The UK Government has said that the responses will help shape future policy thinking about how Carer’s Allowance can be modernised to support carers.

The UK Government is particularly interested in views on potential reform options for the Carer’s Allowance earnings limit, and whether a more predictable approach to how earnings are averaged would better support carers, compared to the current case-by-case approach. Currently, where earnings vary from week to week, the Government may look for a pattern and average earnings over a period of time. This approach is intended to reflect fluctuating work but can be difficult for carers to understand and predict, particularly when their earnings change.

In answering the Call for Evidence, Adferiad has surveyed its staff, members and service users to inform a response which truly reflects the organisation and the people we support.

The survey was conducted between 20^th July – 7^th August and was completed by 20 individuals. Out of the participants, 1 person was a carer receiving Carer’s Allowance, 10 were carers not receiving Carer's Allowance and 9 were Adferiad staff members who work with individuals who receive Carer's Allowance.

Overall, the internal survey highlighted a strong and consistent message from staff and carers that the current Carer’s Allowance system is overly complex, difficult to understand and navigate, financially restrictive and does not adequately reflect the realities of balancing substantial caring responsibilities with work, study and wider life circumstances. Across the responses, there was particularly strong concern around the earnings threshold, the risk of overpayments and the uncertainty created by fluctuating income, alongside a clear preference for greater flexibility, transparency and practical support.

Respondents also consistently emphasised that carers should not be financially penalised for remaining in employment or pursuing education, and that unpaid care should be recognised as a significant contribution in its own right.

The feedback has helped to identify issues affecting carers and inform Adferiad’s response, bringing together individual experiences and wider policy concerns. It provides a useful basis for engaging with the UK Government, and the Department for Work and Pensions specifically, on potential reform and supporting Adferiad’s broader advocacy around reducing financial hardship and improving support for unpaid carers.

The file below details the specific questions, and subsequent answers, submitted to the UK Government in response to their Call for Evidence on Carer’s Allowance.