Thousands of people relying on the Department for Work and Pensions (DWP) Carer’s Allowance are losing out on nearly £37 each week due to the benefit’s failure to keep pace with average wage increases over the past 47 years.
A detailed analysis by Carers UK, drawing from Office for National Statistics (ONS) data, reveals that while the current Carer’s Allowance stands at £86.45 per week, if it had tracked average earnings since its introduction in 1976, carers would now be receiving about £123.48 weekly. This shortfall amounts to roughly £160 less per month for each recipient.
Helen Walker from Carers UK expressed deep concern: “Many carers provide well over the 35 hours of care required to qualify for Carer’s Allowance, yet they struggle daily to cover even basic living costs. The figures highlight an urgent issue—our benefit system isn’t reflecting the vital support carers give.”
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She added, “As unpaid carers increasingly manage complex health needs and sustain intensive care, it’s critical that Carer’s Allowance gets a thorough review to fairly acknowledge their role and provide greater financial security.”
Recent changes from April 6 have seen a modest weekly increase of £3.15, raising the allowance from £83.30 to £86.45, and pushing the annual amount to £4,495.40. Additionally, the earnings threshold for eligibility rose from £196 to £204 per week after certain deductions, potentially allowing more carers who balance work with caregiving to qualify.
Supplementary benefits have also increased: the Carer Element of Universal Credit rose from £201.68 to £209.34 monthly, and the Carer Addition for Pension Credit increased from £46.40 to £48.15 per week.
Walker highlighted, “The higher earnings threshold is positive news for many carers who juggle paid employment with caring duties and might now be newly eligible. We urge all carers to check their entitlement to avoid missing out."
Despite these increments, Carer’s Allowance remains the lowest of its kind among benefits, with almost two-thirds of recipients living in poverty. Most carers report that the allowance is insufficient to meet their financial needs.
Carers UK is calling for a comprehensive reassessment of Carer’s Allowance, including re-evaluating eligibility rules, to secure meaningful, sustainable support for carers in the long term.