For unpaid carers who also work, there’s one rule that causes more worry than any other. Earn even a penny over the weekly limit and you lose your entire Carer’s Allowance for that week. Over the years, it’s left many carers with large overpayment debts.
On October 27, the government confirmed it will replace that “cliff edge” with a gradual taper, so carers who earn a little more lose a little, not everything. Charities have campaigned for this for years. There is a catch, though: it won’t start for several years.
How the rule works now
- Carer’s Allowance is £86.45 a week in England, Wales and Northern Ireland in 2026 to 2027. In Scotland, Carer Support Payment works differently.
- You must care for someone for at least 35 hours a week.
- You can earn up to £204 a week after tax, National Insurance and some allowed expenses.
- Earn £204.01 and you lose the full £86.45 for that week.
So a carer who picks up an extra shift could end up worse off than if they hadn’t worked it.
What’s changing
Under the new system, the government says carers will lose £1 of Carer’s Allowance for every £1 they earn over the limit, rather than losing the lot.
Here’s how that works with today’s figures (the £250 example comes from MoneySavingExpert’s Martin Lewis):
| Weekly earnings (after deductions) | Today | Under the taper |
|---|---|---|
| £204 | £86.45 | £86.45 |
| £210 | £0 | £80.45 |
| £250 | £0 | £40.45 |
| £290.45 or more | £0 | £0 |
Rates usually go up each April, so the actual figures in 2030 will be different.
Work and Pensions Secretary Pat McFadden said: “We have listened to their concerns about the cliff-edge built into the system.”
When does it start?
Not soon. The change is expected from the 2030/31 financial year. Martin Lewis said he was told the delay is down to IT. DWP needs to build a system that can handle earnings information automatically, so the taper doesn’t create a new wave of overpayments.
Carers UK’s Emily Holzhausen welcomed the move, saying the taper “should also help to significantly reduce the number of overpayments related to earnings.”
What about overpayment debts?
This is separate but related. After the independent Sayce review, the government agreed last year to reassess earnings-related overpayments caused by unclear guidance between 2015 and 2025. Debts are being reduced or cancelled where carers were wrongly charged, and money already repaid can be refunded. Most carers don’t need to contact DWP, as cases are being reviewed.
What to do now
Until the taper arrives, the cliff edge still applies, so:
- Keep a close eye on your weekly earnings. Remember it’s earnings after tax, National Insurance and half of any pension contributions. Some care costs while you work can also be deducted.
- Report changes in your pay straight away, especially if your hours vary week to week.
- If your pay is averaged (for example, if it goes up and down), ask DWP how it’s being worked out.
- Got an overpayment letter? Get advice from Carers UK or Citizens Advice before paying, especially if it covers 2015 to 2025.
Sources: MoneySavingExpert (October 26, 2026), Government announcement via Wired-Gov (October 27, 2026) and GOV.UK, Sayce review response.
Maria is a dedicated news writer covering the latest UK updates on DWP, PIP, State Pension Triple Lock, Child Benefit, Universal Credit, and driving licence regulations. She focuses on explaining government announcements, benefit eligibility, payment changes, pension increases, and new regulations in a clear and easy-to-understand way.