Carers across the UK are being urged to pay close attention after the Department for Work and Pensions (DWP) confirmed that Carer’s Allowance rules will change again from April 2026, with a new earnings limit set to take effect. While Carer’s Allowance remains one of the most important benefits for unpaid carers, even a small change to the earnings threshold can have serious consequences for people who juggle part-time work alongside caring responsibilities. For many, this update has come as a shock — especially those already close to the current limit.
Although the DWP has not presented the change as a cut, any adjustment to the earnings cap can still result in carers losing entitlement if they are not prepared. With the cost of living still high and wages rising, carers are being warned that staying informed is essential.
What the Earnings Limit Means for Carer’s Allowance
Carer’s Allowance is paid to people who provide at least 35 hours of care per week to someone receiving a qualifying disability benefit. One of the strictest rules is the earnings limit, which caps how much a carer can earn from work and still receive the allowance.
The earnings limit applies to net earnings, meaning pay after deductions such as tax, National Insurance and certain work-related expenses. If a carer earns even £1 over the limit, they can lose their entire Carer’s Allowance for that week. This rule has long been criticised for being unforgiving, and the upcoming April 2026 change has renewed concerns.
What the DWP Has Confirmed for April 2026
The DWP has confirmed that the Carer’s Allowance earnings threshold will be updated from April 2026, in line with the annual benefit uprating process. While the exact figure will be formally set closer to the start of the 2026–27 financial year, officials have indicated that the limit will be reassessed to reflect economic conditions, wage growth and benefit sustainability.
This does not mean the limit will automatically rise enough to protect all carers. In previous years, increases to the earnings threshold have failed to keep pace with rising wages, pushing working carers out of eligibility without any change in their caring role.
Why This Change Is Being Called a “Shock”
Many carers describe this as a shock because they already live on tight margins. A small pay rise, extra shift or increase in the National Living Wage can unintentionally push earnings over the limit. For carers who rely on Carer’s Allowance as a financial lifeline, losing it can mean an immediate drop in income.
What makes the situation more stressful is that Carer’s Allowance is not gradually reduced — it is stopped entirely once the limit is breached. This all-or-nothing approach means the April 2026 change could affect carers who believe they are “only slightly over” and therefore safe.
Who Is Most at Risk From the New Limit
Carers most likely to be affected by the April 2026 earnings rule include those working part-time or on zero-hours contracts, carers paid close to the minimum wage, and people whose hours fluctuate week to week. Seasonal work, overtime or bonus payments can also cause problems if not carefully monitored.
Single carers, women, and older carers who cannot increase working hours easily are particularly vulnerable, as they often rely on a delicate balance between earnings and benefits.
What Carers Should Do Before April 2026
The DWP is advising carers to review their earnings regularly and report any changes promptly. Checking payslips, understanding allowable deductions, and keeping clear records can help avoid accidental overpayments, which may later need to be repaid.
Carers approaching the earnings limit may also want to seek advice before accepting extra work. In some cases, adjusting hours slightly or claiming allowable expenses correctly can make the difference between staying eligible and losing support.
Will This Affect Other Benefits?
Losing Carer’s Allowance can sometimes increase entitlement to other benefits, such as Universal Credit or Pension Credit, but this is not guaranteed. Each case is assessed individually, and some carers may still be worse off overall. That is why understanding the April 2026 rule change early is so important.
Final Thoughts
The confirmed April 2026 Carer’s Allowance earnings limit update may not sound dramatic on paper, but for thousands of UK carers it could have serious real-world consequences. With wages rising and living costs still high, even small rule changes can push carers out of the system.
The key message is preparation. Knowing where you stand, checking earnings carefully and staying alert to official DWP updates can help protect your income and avoid unexpected losses. For carers who already give so much, clarity and fairness in the system have never been more important.