**Thousands of Carers at Risk of Losing Allowance Amid Government Benefits Shake-Up**
The UK’s Department for Work and Pensions (DWP) is planning to implement major changes to the Personal Independence Payment (PIP) system from November 2026, prompting widespread concern amongst unpaid carers. While Carer’s Allowance itself is not currently facing direct cuts, changes to the underlying eligibility criteria for PIP could deprive many carers of the crucial financial support they rely on.
Currently, Carer’s Allowance is paid to individuals who provide at least 35 hours of care each week to someone who is disabled, unwell or elderly. The care can involve a wide range of tasks – from preparing meals and handling household bills, to accompanying the person to appointments and managing daily routines. The benefit is worth £83.80 per week, which, as charity groups have pointed out, makes it among the least generous forms of carer support available in the UK.
To qualify for Carer’s Allowance, it’s not enough for carers to simply meet the time commitment. The person being cared for must also be in receipt of one of several ‘qualifying benefits’ – PIP being one of the most common. Others include Disability Living Allowance, Scottish Adult Disability Living Allowance, Attendance Allowance, Pension Age Disability Payment and Child Disability Payment.
Under the DWP’s proposed reforms, the criteria for qualifying for PIP are set to become significantly stricter. Carers UK has issued a warning that, if an individual loses their PIP entitlement under the new rules, any carer dependent on providing care for them would, as a result, also lose their eligibility for Carer’s Allowance. The charity’s projections suggest as many as 150,000 carers could lose their Carer’s Allowance by the end of the decade if the regulations go ahead as planned.
Financial pressures on carers are already acute. According to Carers UK, 42% of those currently receiving Carer’s Allowance are struggling with financial hardship, and more than 1.2 million carers nationwide are living in poverty. Many carers face difficulties in taking on paid work due to the time-intensive nature of their responsibilities at home. Recently, the earnings cap for the allowance was raised to £196 per week – up from £151 – in an effort to help carers earn a modest supplementary income, but this may provide limited comfort if the wider eligibility is reduced as a result of reforms.
Helen Walker, Chief Executive at Carers UK, commented on the situation, noting that, “Last year in the 2024 Autumn Budget we welcomed the decision to raise the Carer’s Allowance earnings limit. This was a significant move for those able to work alongside their caring roles. However, these positive steps are overshadowed by the potential impact of new welfare reforms announced earlier this year.”
The situation highlights a wider policy dilemma: while reforms can be designed to streamline welfare spending, they risk penalising some of society’s most vulnerable individuals. For many unpaid carers, the allowance they receive serves as a lifeline, helping them to navigate the immense emotional and financial strain involved in caring for loved ones with complex needs.
Campaigners are urging the government to carefully consider the broader implications of disability benefit reform. They argue any changes should be subject to meaningful consultation and impact assessment, with particular attention paid to how families across the UK will be affected. Losing eligibility for Carer’s Allowance could push thousands more carers into hardship, compounding a cost of living crisis that has already hit low-income households the hardest.
As the DWP moves forward with its plans, attention will be focused on how the department balances targets for welfare reform with its responsibility towards those at the heart of the care system. Many await further details and clarification on the final shape the changes will take, and whether additional measures will be introduced to protect carers and the people they support.