Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps her Department is taking to improve support for unpaid carers.

Unpaid carers play a vital role in supporting elderly or disabled relatives or friends. Sometimes unpaid carers will need to turn to the benefit system for financial support, so it is right that we keep Carer’s Allowance (CA) under review, to see if it is meeting its objectives, and giving unpaid carers the help and support they need and deserve.

Unpaid carers may be able to receive financial and/or employment support from the department depending on their circumstances. This includes CA and means tested benefits such as Universal Credit (UC). UC can be paid to carers at a higher rate than those without caring responsibilities through the additional amounts for carers. UC pays an extra £2400 a year to unpaid carers.

Carers (providing at least 35 hours per week) of severely disabled people may be eligible for benefit support as set out above. They are not required to undertake any work-related activity but can access employment support on a voluntary basis if they wish.

A part-time carer on UC (providing care for under 35 hours a week) would be supported to combine work and care. They will receive personalised employment support from their work coach, who tailors the number of hours a week they are expected to work or search for work to fit their caring responsibilities and take into account any other barriers to working full time, for example a health condition.

Employment support can include identifying skills gaps and referral to skills training, careers advice, job search support, volunteering opportunities and access to the Flexible Support Fund to aid job entry. Unemployed customers who require more intensive employment support can also be referred to the Restart and Connect to Work programmes.

We also know that some carers are keen to maintain contact with the labour market, so we want to encourage carers to combine some paid work with their caring responsibilities wherever possible, meaning they can increase their overall income (eligibility rules apply).

That’s why we have pegged the CA earnings limit to 16 hours work at National Living Wage (NLW) levels, and in future it will increase when the NLW increases. The earnings limit increased to be £196 a week net earnings on 7 April 2025, compared to £151 in 24/25. This is the largest ever increase in the earnings limit since CA was introduced in 1976 and the highest percentage increase since 2001. Over 60,000 additional people will be able to receive CA between 2025/26 and 2029/30 as a result.

DWP has also begun some scoping work to see whether an earnings taper in CA might be a feasible option in the longer term. This will require significant change to current DWP systems.