From Monday, April 7, 2025, a major change to the Carer’s Allowance benefit will come into effect. This change allows thousands more unpaid carers in the UK to earn more money without losing their weekly benefit.
The Department for Work and Pensions (DWP) confirmed that this new earnings threshold will enable 60,000 additional people to qualify for Carer’s Allowance, providing up to £333 per month in support.
What Is Carer’s Allowance?
Carer’s Allowance is a weekly benefit of £83.30 (from April 2025) offered to people who spend at least 35 hours a week caring for someone with a disability or health condition.
You do not need to live with or be related to the person you care for. The benefit is taxable and can be claimed along with other income-related supports.
What Is Changing in April?
Currently, if you earn more than £151 per week, you lose the entire Carer’s Allowance for that week. But starting April 7, you can earn up to £196 per week and still claim the full allowance.
This is a £45 per week increase in the earnings limit — the biggest since the benefit was introduced in 1976.
With this new threshold, carers can now earn over £10,000 a year and still get the benefit.
Why This Change Matters
The update aims to help low-income carers who are working part-time or balancing jobs while caring for someone. Previously, many carers lost out due to the ‘cliff-edge’ rule, where even earning £1 over the limit would result in zero payment for that week.
This rule has been heavily criticised, especially because some carers were asked to repay thousands of pounds after unknowingly breaching the limit.
In response, an independent review into Carer’s Allowance overpayments was launched in October 2024, led by Liz Sayce OBE. Findings are expected in summer 2025.
What Are the New Carer’s Allowance Rates?
Starting April 2025:
Carer’s Allowance rises to £83.30 per week (up from £81.90)
Other DWP benefits, like PIP and Universal Credit, will increase by 1.7% in line with inflation (as measured in September 2024)
Meanwhile, the State Pension will increase by 4.1%, based on average wage growth, following the triple lock policy.
Concerns About Changes to PIP
While charities such as Carers UK welcome the earnings threshold increase, they are concerned about planned changes to Personal Independence Payment (PIP).
Since PIP is a gateway benefit — required for the person being cared for — any changes could impact the eligibility of Carer’s Allowance for thousands.
Helen Walker, CEO of Carers UK, warned:
“While we welcomed the rise in the earnings limit, changes to PIP could leave over 150,000 carers without essential financial support.”
The rise in Carer’s Allowance earnings limit is a positive and long-awaited step for working carers. It allows more people to continue caring for loved ones without giving up part-time work or worrying about losing their benefit.
However, the situation remains uncertain due to potential changes to PIP, which could cancel out these gains for many carers. Advocacy groups continue to push for a complete review of Carer’s Allowance and related systems to ensure fair, long-term support.
FAQ’s
What is the new earnings limit for Carer’s Allowance from April 2025?
From April 7, 2025, carers can earn up to £196 per week and still receive Carer’s Allowance, increased from the previous limit of £151.
How much is Carer’s Allowance in 2025?
It will be £83.30 per week from April 2025, increased from £81.90 in line with inflation.
How many hours must I care to claim Carer’s Allowance?
You must provide at least 35 hours of care per week to be eligible for Carer’s Allowance.
What happens if I earn slightly over the limit?
If your weekly earnings go over £196 after expenses, you will not be eligible for Carer’s Allowance that week.
Could changes to PIP affect my Carer’s Allowance?
Yes. If the person you care for loses PIP or no longer qualifies, your Carer’s Allowance may also stop, as PIP is a qualifying benefit.
