'Cliff edge' benefit rule which punished unpaid carers is being axed - what it means for you

A controversial "cliff edge" rule which has penalised unpaid carers for going over their earnings by just a penny is being removed by the government. Under current rules, those in receipt of Carer's Allowance lose their entitlement if they go over the earnings threshold by even just a few pence. The earnings limit is currently £204 a week. This will soon be replaced by a new taper, which means someone would instead lose £1 from their benefit for every £1 they earn over the threshold - rather than losing the whole lot for going slightly over the limit.

The changes are due to take effect from the 2030/31 financial year. The existing "cliff edge" has been criticised by charities as hard for unpaid carers to keep on top of, especially if someone's wages fluctuate from week to week. To see more of the stories you love from The Mirror and to find them easily in Google then make us your preferred source. Free and easy-to-do, just click on the link here to find more from The Mirror at the top of your feed.

It has sometimes also taken months or years for the overpayments to be spotted, which has seen some people ordered to repay thousands of pounds despite only going slightly over the earnings limit. Earlier this year, the government announced that thousands of unpaid carers who fell victim to this will have their debts reduced, cancelled, or refunded. Carer's Allowance is worth £86.45 a week in England, Northern Ireland and Wales, and up to £98.15 a week in Scotland.

It is claimed by around 1.4 million people. You are eligible for Carer's Allowance if you care for someone at least 35 hours a week and they claim certain benefits, such as Personal Independence Payment. Work and Pensions Secretary Pat McFadden said: "I understand the huge difference unpaid carers make to their families and communities. Many balance work alongside their caring responsibilities. "We have listened to their concerns about the cliff-edge built into the system which leaves them financially worse off for taking on a few more hours, or getting a modest pay rise, and intend to bring that to an end."

Emily Holzhausen CBE, Director of Policy at Carers UK said: "We have been calling for a taper to the earnings limit and an end to the cliff edge on Carer’s Allowance for many years and we’re pleased that the Chancellor has committed to this next step. "Our evidence from unpaid carers found many having to give up part-time paid work altogether or turning work down because they cannot risk going over the limit and losing 100% of their Carer’s Allowance.

"Once introduced, it should also help to significantly reduce the number of overpayments related to earnings which carers have found devastating financially and emotionally."