Chancellor to end carer's allowance cliff edge, but debts remain

The chancellor is set to announce a digital taper system for carer's allowance in the upcoming budget, abolishing the rule that strips the entire weekly benefit from carers who earn slightly above a set threshold. The change ends a policy that triggered massive financial penalties for hundreds of thousands of unpaid carers. However, the new system will not be live until 2030, meaning the cliff edge remains in force for four more years.

Guy Shahar, an unpaid carer for his autistic son Daniel, criticized the plan despite welcoming the structural change. He argued that the government is punishing carers for being victims of an unfair system. Shahar stated that most carers who received unjust overpayment notices in the past will still be required to repay the money. He described the approach as effectively saying the system was flawed but the consequences will still stand.

The current rule causes severe financial strain because a single penny over the weekly earnings limit of £204 results in the loss of the full £86.45 allowance for that week. The Shahars received a bill for £10,130.45 plus a £50 civil penalty for earnings breaches dating back five years. Oksana Shahar earned an average of just £1.92 per week over the limit while working part-time minimum wage jobs. The couple is currently challenging the charge at a tribunal.

Elizabeth Tait, who cares for her disabled son Oliver, expressed shock that a digital system will take years to build. She noted that the delay is illogical in the current technological climate and demanded that ministers prioritize the project. Tait, who faced a £1,623 bill for an unwitting threshold breach, described the cliff edge as a symbol of a wider broken system that treats unpaid carers as casualties.

Andrea Tucker successfully overturned a £4,600 overpayment at a tribunal in February 2025. She worked part-time for a charity shop and sometimes worked six hours for free to stay under the earnings limit. DWP officials had unlawfully decided she could not average her earnings over a one-year period. Tucker believes carers who were unfairly punished should be compensated and that those currently repaying debts should have them cancelled.

Tucker highlighted the ongoing stress for carers still paying back overpayments. She cited a friend who went £12.50 over the limit due to holiday pay and is now repaying the debt in £10 monthly installments. That friend has expressed a hope to pass away before finishing the payments. The Department for Work and Pensions faces continued pressure to restore trust among unpaid carers as it builds the new taper mechanism from scratch.