UK to replace carer's allowance cliff-edge with digital taper
Chancellor John Healey will announce in Wednesday's budget a digital taper to replace the carer's allowance cliff-edge, the Guardian reports.
The story in focus
Chancellor John Healey will announce in Wednesday's budget a plan to replace the carer's allowance cliff-edge with a digital taper, The Guardian reports, after its investigation and the Sayce review found about 180,000 carers accrued roughly £300m in overpayment debts between 2019 and 2025.
- The reform is a budget announcement, not yet enacted legislation.
- Under the plan, £1 of allowance is removed for every £1 earned above the limit.
- The current limit is £204 a week; the allowance is £86.45 a week.
- The Sayce review found about 180,000 carers accrued roughly £300m in debts between 2019 and 2025.
- Campaigners say the digital system will not launch before the end of the decade.
What is being announced
Chancellor John Healey will use Wednesday's budget to announce a digital taper for carer's allowance, The Guardian reports, effectively ending the cliff-edge rule. The change is an announcement, not enacted law.
The existing rule means a carer earning even a penny above the £204 weekly limit forfeits the entire week's £86.45 payment. Under the proposed taper, £1 of allowance would be removed for every £1 earned above the limit.
Why the rule is being changed
The Guardian investigation and the government-commissioned Sayce review, published last year, found about 180,000 carers ran up overpayment debts amounting to £300m between 2019 and 2025, per the review.
The review attributed the debts to an outdated benefit design and DWP administrative failures. Treasury officials have said the budget will be low-key, with difficult tax and spending decisions deferred to next year's spending review.
Timing and reaction
Campaigners welcomed the decision but noted disappointment that building the new digital system means the taper will not be introduced before the end of the decade.
Carers UK and Carers Trust both backed the change, with Carers Trust urging wider reform of carer's allowance. The Guardian reports the measure is one of five further everyday fixes announced ahead of the budget.
What will replace the carer's allowance cliff-edge?
The Guardian reports a digital taper will replace the cliff-edge under which £1 of allowance is removed for every £1 earned above the limit. It is a budget announcement, and campaigners say the system will not launch before the end of the decade.
Sources & further reading
- Carers allowed to earn over the weekly limit without losing out as ‘cliff-edge’ abolished in the budget ↗The Guardian
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