The minister for disabilities has expressed support for reforms to the carer’s allowance system that would replace the existing “cliff edge” earnings threshold with a gradual taper, easing the financial impact on unpaid carers who work alongside their caregiving duties. Sir Stephen Timms said he was “very interested” in pursuing a taper model, under which the benefit would reduce incrementally as earnings rise above the current limit of £204 per week, rather than being stopped entirely.

Currently, carers who provide at least 35 hours of care per week to someone receiving a qualifying disability benefit can claim £86.45 weekly. However, if a carer’s income exceeds the earnings threshold, they lose the entire benefit, a situation described by many as “punitive” and confusing. Unpaid carers report that this system can lead to unintended overpayments from the Department for Work and Pensions (DWP), which they must then repay.

Jayne Simpson, a 60-year-old unpaid carer from Shoreham-by-Sea, West Sussex, who cares for her daughter with autism and complex health needs, said the introduction of a taper would be “not just helpful but… morally right.” She argued that it was unfair for carers to lose their entire benefit due to marginally exceeding the earnings limit.

In response, the government has launched a six-week call for evidence to gather input from carers, advocacy groups, and charities on modernising the system. The review aims to improve predictability and support for individuals balancing paid work and caregiving responsibilities. Officials will explore proposals including replacing the current sharp earnings cutoff with a gradual reduction in payments and reconsidering the rules that cap working hours for carers.

Sir Stephen Timms noted that the existing benefit structure has not adapted to societal changes, with many carers needing to combine employment with their care duties. He described the current system as “very old-fashioned” and acknowledged that the cliff edge threshold “makes life very difficult for carers.” Timms indicated that if reforms proceed, they could be implemented within the current parliamentary term, expected to run until 2029, although it may take a couple of years for changes to take full effect.

Separately, the government initiated a major reassessment of historic carer’s allowance overpayments, which involves reviewing more than 200,000 cases dating back to 2015. This follows an independent review led by Liz Sayce, former chief executive of Disability Rights UK, which found that systemic failures in administering the benefit caused many carers to unknowingly fall foul of rules, accruing debts they struggled to repay.

The Sayce Review revealed that some carers felt they were treated like criminals, experiencing fear and shame as a result. In some cases, carers left paid employment entirely because of the financial pressures arising from these debts. Elizabeth Tait, 61, a single mother and carer from Thames Ditton, Surrey, described being “made to feel like a criminal” after having to contest overpayments in court.

Sir Stephen Timms expressed optimism that eligible claimants could see some or all of their historic debts cancelled during this parliamentary session as the DWP works through the backlog of cases.