Unpaid carers will no longer lose their entire Carer's Allowance for earning a penny over the weekly earnings limit, under a change confirmed in Budget 2026 — but the reform does not start until 2030-31. Until then, the cliff edge remains in force, and carers must continue to check their earnings against the current limit, which is £204 a week after tax.

Under the new system, Carer's Allowance will fall by £1 for every £1 earned above the limit, rather than stopping altogether. The Treasury expects around 48,000 carers in England and Wales to benefit. The change applies in England and Wales only; Scotland has its own Carer Support Payment and Northern Ireland runs its own social security system. The delay reflects the need for a new IT system that can adjust payments automatically.

What carers should do now

To qualify, a carer must be aged 16 or over, not in full-time education, spend at least 35 hours a week caring for someone who receives a qualifying disability benefit, and stay within the earnings limit. The current weekly rate is £86.45. Carers who earn just over the limit today still lose the whole payment for that week, so the Budget announcement changes nothing immediately — it sets the direction for 2030-31, when the taper is due to replace the cliff edge.