The Department for Work and Pensions (DWP) has rolled out an important change to Carer’s Allowance from April 2025, increasing the weekly earnings threshold by £45. This means carers can now earn up to £196 a week without losing their benefit. The move is designed to ease financial pressure and reward the critical work done by unpaid carers across the country.
This update reflects the government’s intent to help unpaid carers balance work and caregiving duties more easily. It is expected to benefit more than 60,000 individuals by 2029.
What Is Carer’s Allowance?
Carer’s Allowance is a government-funded weekly payment of £81.90 in 2025, available to those who care for someone at least 35 hours per week. It serves as a financial cushion for those who reduce their working hours or stop work altogether to provide long-term support to someone with a disability or health condition.
Before April 2025, carers could earn up to £151 per week after deductions. With the threshold now increased to £196, more individuals can keep their allowance while engaging in part-time work.
Overview of the Carer’s Allowance Earnings Update
| Category | Details |
|---|---|
| New Weekly Earnings Limit | £196 (from April 2025) |
| Previous Threshold | £151 |
| Weekly Allowance Rate | £81.90 |
| Required Hours of Care | Minimum 35 hours/week |
| Expected Beneficiaries | 60,000 by 2029/2030 |
| Administered By | Department for Work and Pensions (DWP) |
| Additional Policy | Review into overpayment issues |
Why the Change Is Important
The increase is a recognition of the crucial role played by unpaid carers, who often sacrifice job opportunities to look after family members. It also reduces the risk of carers losing benefits for minor changes in income, encouraging more flexible working conditions for this group.
DWP Minister Andrew Western called this “the biggest-ever cash increase for the Carer’s Allowance earnings limit,” reaffirming support for those who balance employment and care responsibilities.
Review Into Past Carer’s Allowance Overpayments
Alongside the income threshold increase, the DWP is conducting an independent review of past overpayments. Many carers unknowingly crossed the earnings limit by small amounts and were required to repay hundreds or even thousands of pounds.
The review, led by Liz Sayce OBE, will assess the causes and impact of these overpayments. Findings are expected by summer 2025 and may shape future policy improvements.
Repayment Flexibility for Overpayments
For those impacted by historical overpayments, the DWP has introduced more lenient and flexible repayment options. Text reminders will also be sent to carers, encouraging them to update the DWP on any income changes in real time to avoid future errors.
Who Qualifies for Carer’s Allowance?
To be eligible for Carer’s Allowance in 2025, applicants must:
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Provide at least 35 hours of unpaid care weekly
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Earn less than £196 per week after taxes and deductions
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Care for someone who receives a qualifying disability benefit (such as PIP or DLA)
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Not be enrolled in full-time education
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Be legally residing in the UK with access to public funds
These criteria aim to support part-time workers while ensuring care recipients continue to get the help they need.
What Should Carers Do Now?
Carers should:
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Use the GOV.UK Carer’s Allowance Calculator to assess their eligibility
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Update their income and work status with DWP before April 2025
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Keep all payslips and communication with DWP for future reference
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Watch for further updates regarding the overpayment review
Staying proactive and keeping personal records up-to-date will help prevent interruptions in payments or unexpected repayments.
FAQs
What is the new Carer’s Allowance earnings threshold in 2025?
The new threshold is £196 per week, effective from April 2025. This is up from the previous limit of £151.
Who is eligible for the updated Carer’s Allowance?
Anyone who cares for a person for at least 35 hours a week and earns below the new limit may qualify, provided the person cared for is receiving a qualifying benefit.
How many people will benefit from this increase?
Over 60,000 people are expected to gain eligibility for Carer’s Allowance by the end of the decade due to this threshold increase.
What should I do if I suspect I was overpaid?
You should contact the DWP directly. They are now offering affordable repayment options and reviewing cases individually.
Will I be notified of the new rules?
Carers are encouraged to check GOV.UK regularly and sign up for notifications from the DWP to stay informed about changes and reminders.
Final Thought
The £45 weekly increase in the Carer’s Allowance earnings threshold is more than just a policy change—it’s a crucial step toward recognising and supporting the UK’s unpaid carers. By allowing carers to earn more while keeping their benefits, the DWP is promoting dignity, flexibility, and stability for thousands of families.
For those currently in caregiving roles or considering applying for Carer’s Allowance, now is the time to review your situation, update your information, and prepare for the positive changes ahead.
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Aanchal is a passionate writer with a keen interest in storytelling, content creation, and creative expression. She enjoys exploring diverse topics and crafting engaging narratives that captivate readers.