UK government to end carers’ benefit cliff edge in pre‑Budget cost‑of‑living package
The change will see benefits fall by £1 for each extra pound earned, easing a long‑standing penalty for unpaid carers.
By Felo News Desk · Published
The UK government announced on the eve of the Budget that it will end the Carers’ Allowance "cliff edge" that penalises unpaid carers for exceeding a low earnings limit.
What happened
Chancellor John Healey said the benefit will no longer be withdrawn when a carer’s earnings rise by even a few pence per week. Instead, the allowance will be reduced gradually – a taper of £1 for every additional pound earned.
What the reports add
Both Independent and Standard said the announcement was part of a broader "everyday fixes" package aimed at easing the cost‑of‑living crisis. In addition to making a 55p tax‑free mileage allowance permanent and slashing tariffs on foods such as chocolate, beans and gherkins, the outlets reported that the package will:
- Extend parental pay to more than 150,000 parents each year, including self‑employed fathers.
- Raise the national living wage from £12.71 to £13.20, a near‑4% increase.
- Freeze fuel duty at 52p per litre, keeping the tax unchanged despite an expected unfrozen rise.
- Deliver a £432 million boost to help ensure homeless people are off the streets by Christmas.
The tariff cuts are intended to lower fertilizer costs for farmers and kerosene prices for households that use it for heating.
What was said
“We are taking on the big challenges facing the country but that doesn’t mean losing sight of the everyday problems that cost people money or simply aren’t fair.” – Prime Minister Andy Burnham, Independent and Standard
“If you’re a nurse driving for work, a parent spending those precious first weeks with your new baby, or an unpaid carer picking up an extra shift, these changes will make life a little easier and put more money back in your pocket.” – Prime Minister Andy Burnham, Standard
How it came about
The move follows earlier criticism of the government’s handling of cost‑of‑living pressures, including the SNP’s claim that Burnham had broken a pledge as mortgage rates rose (Felo coverage). Ministers set out the "everyday fixes" on the Budget eve, with the full details expected in the Budget scheduled for Wednesday.
Key facts
- The Carers’ Allowance cliff edge will be replaced by a taper of £1 per extra pound earned. (independent.co.uk)
- The change is part of a cost‑of‑living package announced before the Budget. (standard.co.uk)
- The package also includes a permanent 55p tax‑free mileage allowance and tariff cuts on selected foods. (independent.co.uk)
Sources
- [1] independent.co.uk
- [2] standard.co.uk
- [3] independent.co.uk
