We call on the Government to end the practice of deducting Carer’s Allowance in full from Universal Credit.

Carers save the state billions of pounds every year by providing essential care to disabled, elderly, and vulnerable people. Despite this, carers are financially penalised for the support they give.

Carer’s Allowance is currently treated as unearned income and deducted pound for pound from Universal Credit. This is deeply unfair and inconsistent with how work is treated within the system. People in paid employment can earn up to a work allowance before their Universal Credit starts to reduce — £411 or £684 a month depending on circumstances — yet Carer’s Allowance, which is below those thresholds, is still fully offset. �

In contrast, wage income is tapered at 55p for every £1 earned above the allowance. �

GOV.UK

GOV.UK

Carers who receive Carer’s Allowance also pay National Insurance contributions, just like working people. Despite this, the allowance is treated as if it were a benefit to be offset, rather than recognition of work that would otherwise need to be paid for by the state.

Personal testimony

I am a parent to a 12‑year‑old boy with autism. He cannot attend a mainstream school, and the local authority has been unable to find a suitable school placement, so he has a home tutor. He cannot be left alone. Because of this, I had to give up my job as a full‑time community carer — a role I adored — to care for him full time.

This is not a lifestyle choice; it is an absolute necessity to keep my child safe, supported, and progressing. Yet the system treats my Carer’s Allowance as if it cancels out the very support I need, even though I am not earning anything from paid work. I’m left no better off, despite providing constant, essential care and having contributed to National Insurance while working previously.

My situation shows exactly why the current policy hurts carers: it forces many to give up valuable paid work, reduces household income to the bare minimum, and ignores the real value and cost of unpaid care.

We ask the Government to:

Stop deducting Carer’s Allowance from Universal Credit

Treat Carer’s Allowance in line with earnings allowances

Recognise caring as a valid and valuable contribution to society

Supporting carers properly is not only fair — it is economically sensible and morally right.

We urge policymakers to act now and ensure carers are no longer financially punished for caring.