Carer's Allowance Cliff-Edge Abolished: New Digital Taper System in UK Budget

The UK government will abolish the carer's allowance earnings limit 'cliff-edge' in Wednesday's budget, the Guardian can reveal. Chancellor John Healey is set to announce a new digital taper system, ending a controversial rule that led to unpaid carers being hit with penalties of thousands of pounds for exceeding the weekly earnings threshold. Under the current system, carers who earn even £1 over the £151 weekly limit lose their entire allowance and face large overpayment fines. The reform follows a Guardian investigation that exposed the harsh impact on carers, many of whom were unaware they had breached the limit. The new taper will gradually reduce the allowance as earnings rise, removing the sudden cut-off. Carers' charities have long campaigned against the cliff-edge, which they say traps people in poverty and discourages work. The change is expected to benefit tens of thousands of carers and simplify the system. It marks a significant victory for campaigners and a shift towards fairer treatment of unpaid carers in the social security system.