Carers deserve a system that recognises the reality of caring

Unpaid carers make an enormous contribution to families, communities and society, often while balancing employment, education and their own financial and wellbeing needs. Yet for many carers, the rules around Carer’s Allowance can make these responsibilities even harder to manage.

The UK Government recently launched a call for evidence on how Carer’s Allowance could be modernised, including how rules on earnings operate and whether an earnings taper could provide greater flexibility for carers who work alongside their caring responsibilities.

Adferiad responded to the consultation, informed by feedback from people with lived experience. While individual views differed on what reform should look like, there was a strong consistent message throughout; that the current system is too complex, financially restrictive and does not adequately reflect the realities of caring.

A system that should support carers to work

One of the clearest themes was concern about the current earnings limit. Carers told us that the existing rules can discourage people from taking on additional work, particularly where their income fluctuates.

This is particularly relevant for people working on sessional, agency or flexible-hours contracts, where the amount of work available can vary significantly from week to week. For example, a carer working in a casual or agency role may be offered different numbers of shifts each month, making it difficult to predict their earnings and stay within the current limit.

For unpaid carers, taking on an additional shifts should not mean worrying that a temporary increase in earnings could result in their support being reduced or an overpayment being created.

There must be greater flexibility around earnings, including a taper that would begin above the current £204 weekly earnings limit. Consideration should be given to  increasing this to around £400, or even removing the weekly earnings restriction altogether.

Where a taper is introduced, we are clear that support should reduce gradually rather than creating another financial cliff edge.

Making the system simpler and more predictable

The interaction between Carer’s Allowance and Universal Credit is another significant concern.

Many carers simply want to know one thing: “If my circumstances change, what will my overall income be?”

Understanding how earnings, Carer’s Allowance and Universal Credit interact can be difficult. The system should be simpler, with information shared automatically between benefits whenever possible. Linking earnings information with HMRC could reduce duplication, paperwork and the risk of errors.

Any changes should also be communicated in a way that works for carers, using plain language, clear examples, visual information and an online calculator that could show how different levels of earnings would affect entitlement.

For example, carers should be able to enter their expected earnings and see clearly: “if you earn £X, your Carer’s Allowance will be £Y”.

The importance of human support and interaction should be central, including through third sector organisations and advice services, so that carers who cannot or do not want to rely solely on digital information can still understand their rights.

Carers should not have to choose between caring and education

Another focus for reform is the 21-hour rule for students receiving Carer’s Allowance.

The current threshold can discourage carers from pursuing further education, training and qualifications. Caring responsibilities do not necessarily decrease simply because someone studies for more than 21 hours a week.

Carers tell us that greater flexibility is needed, alongside early identification of unpaid carers by universities, colleges and training providers. Access to flexible learning, financial advice, wellbeing support and respite or replacement care could all make it easier for carers to continue their education.

Supporting carers to develop skills and qualifications can also improve their future employment opportunities and financial security.

Recognising the value of unpaid care

Perhaps the strongest message we hope the Government hears is that Carer’s Allowance does not adequately reflect the contribution of unpaid carers.

Caring can be a 24-hour responsibility. It can involve significant financial pressures, isolation and impacts on wellbeing, while also saving substantial costs for the health and social care system.

Financial support should reflect this reality, and include additional practical benefits such as respite or guaranteed access to wellbeing services.

We must also recognise that caring does not necessarily stop when someone reaches State Pension age, and that carers may need support for a period after a caring role ends to allow them to adjust and consider their next steps.

What happens next?

The feedback gathered through our work responding to the Government’s call for evidence has helped Adferiad identify the key issues affecting unpaid carers and develop an understanding that brings together lived experience and wider policy concerns.

Our message to the UK Government is clear: reform should make Carer’s Allowance simpler, fairer, more flexible and more responsive to the realities of modern caring. Carers should be able to work or study where they are able to do so, without being financially penalised, while continuing to receive meaningful recognition for the substantial unpaid care they provide.

A fairer system would not only support carers themselves. It would help families, communities and the wider health and social care system by enabling carers to remain economically active and continue providing sustainable care.

Read Adferiad’s full response to the UK Government’s Carer’s Allowance call for evidence here.