The Government is committed to improving and modernising how earnings are treated in Carer's Allowance. It has increased the weekly earnings limit to match 16 hours at the National Living Wage, improved guidance, and is exploring longer-term changes to the benefit, including automation of earnings and the possibility of an earnings taper. A Call for Evidence to support this work was launched on 7 July 2026 and is open until 18 August 2026: Carer's Allowance: call for evidence - GOV.UK.

Where Carer's Allowance recipients undertake paid work, there is flexibility for Decision Makers to average earnings where these fluctuate in a regular pattern, using a period that best reflects the individual's working pattern.

Responsibility for the terms and administration of the Scheme sits with Motability Foundation and its Board of Governors. Department officials and Motability meet regularly to review the Scheme and how it operates to ensure it meets the needs of disabled people

After careful consideration of customer's needs, Motability has announced that from 1 July 2026, customers who need significantly more travel than the standard mileage allowance for essential healthcare, education or employment journeys may be eligible for additional mileage support. Customers must demonstrate they require more than 3,000 miles a year for these purposes, with support applied to approved miles above that threshold through reduced excess mileage charges, while leisure and holiday travel is excluded. Support can be requested when ordering a vehicle or during a lease, with eligibility assessed based on individual circumstances and supporting evidence.

Reducing customer journey times for Disability Living Allowance (DLA) and Personal Independence Payment (PIP) claimants is a priority for the Department and we are working constantly to make improvements to our service. More information can be found here:

Disability Living Allowance for children timeliness performance, for new claims cleared between 1 August 2025 and 31 March 2026 - GOV.UK

Personal Independence Payment: Official Statistics to April 2026 - GOV.UK

A child or young adult cannot qualify for DLA or PIP unless the disability conditions have been satisfied for an initial period of three months. This helps establish that disability and the resulting needs are of a longstanding nature and ensures that the benefit goes only to those for whom it is intended. Where entitlement conditions are met, Carer’s Allowance can be backdated for up to three months from the date that entitlement to the qualifying disability benefit begins. Severely disabled children and young adults do not always have to wait for the full three months from the date of their claim before they become entitled to DLA or PIP if they have already had the requisite needs arising prior to their claim.

Special considerations also apply to those who are terminally ill, who are awarded the highest rate of the care component of DLA or the enhanced rate of the PIP daily living component automatically without having to complete a qualifying period. Such claims are dealt with quickly and sensitively.

We have accepted or partially accepted 38 of the 40 recommendations in Liz Sayce’s independent review of Carer’s Allowance overpayments. We are working on plans to improve and modernise Carer’s Allowance (CA), making it easier for unpaid carers to combine their caring responsibilities with paid work where they can, and rewarding them more for doing so.

The department also provides support to unpaid carers through income-related benefits, which can be paid to carers at a higher rate than those without caring responsibilities. Universal Credit and Pension Credit pay an extra £2,500 a year to 1.1 million unpaid carers through the carer element and carer addition respectively.

We have also increased the weekly Carer's Allowance earnings limit to match 16 hours work at National Living Wage levels. This change from April 2025 resulted in the largest ever increase in the limit to £196 net earnings a week and the highest percentage increase since 2001. In April 2026 the earnings limit increased to £204 per week. This means more than 60,000 additional people will be able to receive Carer's Allowance between 2025/26 and 2029/30 as result. This change will mean that those working 16 hours and receiving the NLW will be sure that they can receive CA that week.

The Carer’s Leave Act 2023 gave employees a right to time off to care for someone who is disabled or has a long-term health condition for the first time and the Plan to Make Work Pay review announced in November 2025  presents an opportunity to consider our approach to employment rights for unpaid carers, particularly leave entitlements, giving due consideration to balancing costs and benefits to both businesses and the exchequer.

We continue to keep all policies under review, considering them against a range of factors, including the wider fiscal situation and government priorities.

The Removal of the Spare Room Subsidy, applies to working-age claims for housing support, either Housing Benefit or the housing element of Universal Credit, where the claimant is living in the social rented sector in a property that has more bedrooms than their benefit entitlement.

Easements are available which allow an additional bedroom to support disabled people and carers, the families of disabled children, foster carers, parents who adopt, parents of service personnel and people who have suffered a bereavement.

People facing difficulty in meeting their housing costs can apply to their local authority for discretionary support.

The Universal Credit impact assessment published in December 2012 assessed the impacts of introducing Universal Credit. It did not specifically reference carers, but it set out how households’ awards would be affected by the overall combination of changes.

A detailed explanation of the policy was set out in UC Policy Briefing Note 1, published in 2011, and explained that additions would be paid in respect of not being able to work through either a medical condition or by virtue of caring responsibilities. Couples can get LCWRA element for one member and the carer element for the other partner.

Through our Jobcentres, DWP supports unpaid carers who wish to combine their caring responsibilities with paid work. Full time carers who receive Universal Credit can access voluntary employment support from a work coach, which includes identifying skills gaps and referral to skills training, careers advice, job search support and volunteering opportunities. Customers who receive Carer’s Allowance may be also eligible for the Flexible Support Fund, which helps to remove financial barriers to work.

In England and Wales, carers, whether they are in receipt of Carer’s Allowance or not, and former carers, are eligible for intensive, personalised support from our voluntary Supported Employment programme, Connect to Work, part of the Government’s Pathways to Work support offer. This programme provides up to 12 months holistic support for disabled people, individuals with health conditions and people with more complex barriers to work to help them move closer to, and into, sustained employment. It can also provide up to 4 months’ support to people who are in work but at risk of falling out of employment as a result of their condition or barrier.

In Northern Ireland, services are run by the Department for Communities.

Lump sum compensation payments under the Armed Forces Compensation Scheme are treated as personal injury capital and are disregarded for 12 months, reflecting longstanding rules across means-tested benefits and allowing time to protect funds intended to meet long-term needs. Where payments are placed into a trust or annuity, they are disregarded indefinitely, meaning the system already provides a mechanism to protect compensation in the long term.

Carers who provide unpaid care for at least 35 hours per week for a severely disabled person may get a carer element as part of their Universal Credit award. DWP is working with the Ministry of Defence to strengthen guidance and improve awareness, ensuring individuals understand their options to protect compensation at the point of award.

It is important that all claimants can access our services and that they do not face obstacles in applying and communicating with the Department and its providers, either personally or through a third party such as a carer.

We are committed to ensuring people can access financial support through PIP in a timely manner.  Reducing customer journey times for PIP claimants is a priority for the Department and we are working constantly to make improvements to our service.  We always aim to make an award decision as quickly as possible, taking into account the need to review all available evidence, including that from the claimant and claimants are kept informed and updated at each stage of the process, including through our improved text message service.

Since 6 April 2026, we have reduced the frequency of repeated assessments in PIP. For most claimants over 25, their first review will be after a minimum of 3 years and, assuming they remain entitled, 5 years for their next review.

Support for unpaid carers on low incomes is primarily provided through Universal Credit and Pension Credit, which include carer amounts in addition to the standard allowance or Standard Minimum Guarantee. These additions are worth up to £2,500 a year. In England and Wales, support is also available through Carer’s Allowance.

For those who are able to balance paid work with their caring responsibilities, this is also a means of increasing household income. It also contributes to the wellbeing of the carer, and to the skills available to employers. The Carer’s Leave Act 2023 gives employees a right to time off to provide care, and the Government will be consulting on further changes to care leave. The Employment Rights Act 2025 contains provisions to support improved work‑life balance, including measures to strengthen access to flexible working.

Unpaid carers receiving Carer’s Allowance receive a Class 1 National Insurance Credit which helps protect entitlement to the State Pension and contributory working-age benefits. Those receiving Universal Credit or a Carer’s Credit receive a Class 3 National Insurance Credit which helps protect entitlement to the State Pension. In all cases other contributions and entitlement conditions for the benefits or pension concerned would also need to be satisfied.

Universal Credit for self-employed individuals aims to encourage sustainable work choices and support self-employment where it is a realistic route to financial self-sufficiency.

The Minimum Income Floor is designed to encourage low-earning customers to increase their earnings and grow their business. The level of the Minimum Income Floor is calculated using the number of hours per week that a customer is expected to work, tailored specifically to customers individual circumstances, including for health conditions and caring responsibilities. It is set at a maximum of 35 hours for individuals with no limitations on their expected working hours.

To align with the offer of 30 hours of free childcare for working parents, self-employed individuals with children aged 3-12 typically have their Minimum Income Floor set using a maximum of 30 hours per week.

The Department for Work and Pensions is currently reviewing over 200,000 cases of overpayments for carers, some of whom have accrued up to £20,000 through a situation not of their own making. In the light of this, will the Secretary of State stop applying carers penalties until the Department has completed this review?

Obtaining this information would require a manual review of individual claims and could be done only at disproportionate cost.

During the application process for Universal Credit the applicant is asked whether they are caring for someone with a health condition or disability. Information is not collected as part of a claim for New Style Jobseekers Allowance as it is not relevant for the award.

People in Great Britain who provide unpaid care of 35 hours a week or more can receive financial support from the benefit system through Universal Credit (UC) or Pension Credit (PC). Carer’s Allowance (CA) is also available to those in England and Wales. UC and PC are means-tested and include additional amounts for carers worth around £2,400 a year. CA is not means-tested and is worth around £4,300 a year.

Payments to the unpaid carer are linked to the extra costs disability benefit received by the person with care needs. This is most commonly the Daily Living Component of Personal Independence Payment (PIP), the middle or highest rate Care Component of Disability Living Allowance (DLA), Attendance Allowance (AA), or the equivalent rates of Child Disability Payment, Adult Disability Payment, Scottish Adult Disability Living Allowance or Pension Age Disability Payment in Scotland. Receipt of PIP, DLA or AA is based on functional ability, rather than the health condition or disability itself. Individuals can be affected in different ways by the same condition, and so the outcome of a PIP claim from somebody harmed by sodium valproate would depend on individual circumstances. The amount of the carer additions in UC and PC, and the rate of CA, do not depend on the reason that the extra costs disability benefit is in payment.

The Government inherited a system where some busy carers, already struggling under a huge weight of caring responsibilities, have found themselves with unexpected debts due to earnings-related overpayments of Carer’s Allowance which they were asked to pay back. This only affected some of the relatively small number of Carer’s Allowance claimants who also do paid work, but the impact on some of these unpaid carers has been significant.

Liz Sayce OBE led an Independent Review into the matter. The Review’s report, which we published on 25 November 2025, alongside the Government’s response, has been invaluable in assessing how these overpayments have arisen; what can be done to support unpaid carers who have incurred debts in the past; and how further overpayments can be minimised in future.

The Review has shown that some mistakes were made, and we are determined to put them right. The Government has welcomed the report and is accepting or partially accepting 38 out of the 40 recommendations. In some cases, the changes the report is asking for have already been made. Others will take more time to put in place.

The department agrees the guidance on averaging earnings between 2015 and summer 2025 did not accurately reflect the statutory position with respect to those with fluctuating earnings. That is why we are putting steps in place to run a reassessment exercise. This exercise will begin later this year, and we will communicate details on how this will work in due course.

The department does not routinely publish data at a benefit level linked to benefit fraud prosecutions. However, data on the volume of prosecutions since 2015, where published, can be found in their respective Annual Report available here: DWP annual reports and accounts - GOV.UK. For example, for the 2024/25 figures see page 114 in the Annual Report and Accounts.

The Government inherited a system where some busy carers, already struggling under a huge weight of caring responsibilities, have found themselves with unexpected debts due to earnings-related overpayments of Carer’s Allowance which they were asked to pay back. This only affected some of the relatively small number of Carer’s Allowance claimants who also do paid work, but the impact on some of these unpaid carers has been significant.

Liz Sayce OBE led an Independent Review into the matter. The Review’s report, which we published on 25 November 2025, alongside the Government’s response, has been invaluable in assessing how these overpayments have arisen; what can be done to support unpaid carers who have incurred debts in the past; and how further overpayments can be minimised in future.

The Review has shown that some mistakes were made, and we are determined to put them right. The Government has welcomed the report and is accepting or partially accepting 38 out of the 40 recommendations. In some cases, the changes the report is asking for have already been made. Others will take more time to put in place.

The department agrees the guidance on averaging earnings between 2015 and summer 2025 did not accurately reflect the statutory position with respect to those with fluctuating earnings. That is why we are putting steps in place to run a reassessment exercise. This exercise will begin later this year, and we will communicate details on how this will work in due course.

The department does not routinely publish data at a benefit level linked to benefit fraud prosecutions. However, data on the volume of prosecutions since 2015, where published, can be found in their respective Annual Report available here: DWP annual reports and accounts - GOV.UK. For example, for the 2024/25 figures see page 114 in the Annual Report and Accounts.

The Government inherited a system where some busy carers, already struggling under a huge weight of caring responsibilities, have found themselves with unexpected debts due to earnings-related overpayments of Carer’s Allowance which they were asked to pay back. This only affected some of the relatively small number of Carer’s Allowance claimants who also do paid work, but the impact on some of these unpaid carers has been significant.

Liz Sayce OBE led an Independent Review into the matter. The Review’s report, which we published on 25 November 2025, alongside the Government’s response, has been invaluable in assessing how these overpayments have arisen; what can be done to support unpaid carers who have incurred debts in the past; and how further overpayments can be minimised in future.

The Review has shown that some mistakes were made, and we are determined to put them right. The Government has welcomed the report and is accepting or partially accepting 38 out of the 40 recommendations. In some cases, the changes the report is asking for have already been made. Others will take more time to put in place.

The department agrees the guidance on averaging earnings between 2015 and summer 2025 did not accurately reflect the statutory position with respect to those with fluctuating earnings. That is why we are putting steps in place to run a reassessment exercise. This exercise will begin later this year, and we will communicate details on how this will work in due course.

The department does not routinely publish data at a benefit level linked to benefit fraud prosecutions. However, data on the volume of prosecutions since 2015, where published, can be found in their respective Annual Report available here: DWP annual reports and accounts - GOV.UK. For example, for the 2024/25 figures see page 114 in the Annual Report and Accounts.

There is a maximum of two claimants on a Universal Credit (UC) claim therefore there cannot be 3 or more claimants on the UC claim being attributed with the carer’s element.

a) In August 2025, 1,045,000 UC households had the UC carer's element of £201.68 for one claimant.

b) In August 2025, 37,000 UC households had the UC carer's element of two lots of £201.68 – one attributed to each claimant on a joint claim.

Notes:

1. Figures are for GB.
2. Figures relate to UC claims with an assessment period covering the 2nd Thursday of the month.
3. Figures are rounded to nearest 1,000.
4. Nil award claims are not included. However, some UC claims will have been reduced for adjusting factors such as capital, earnings and other income.
5. Household in this definition is a single person or couple living together, and any child dependants. This may also be known as a benefit unit.