Carer’s Allowance Changes: What Today’s Budget Means for Carers and Families

Today’s Budget included several changes that will directly affect carers — but the information can be confusing, especially with people mixing up Carer’s Allowance and the Carer’s Element inside Universal Credit.

This blog post breaks everything down clearly, in simple terms, so you know exactly what’s changing, what isn’t, and what it means for you and your family.

1. Carer’s Allowance and the Two-Child Cap Are Not Linked

A lot of people online have been worried that the scrapping of the two-child benefit cap affects Carer’s Allowance.

It doesn’t.

The cap only affects the child element of Universal Credit.
Carer’s Allowance is completely separate and continues as normal.

2. Carer’s Allowance Is Increasing Slightly

Carer’s Allowance is going up with the annual benefit uprating.

This means:

The weekly Carer’s Allowance payment will increase by a small amount.
The earnings limit (how much a carer can earn before losing the allowance) will also be adjusted in line with inflation.

Nothing else about Carer’s Allowance is being removed, cut, or changed.
The rules stay the same.

If you care for someone for 35 hours or more per week, and the person you care for receives qualifying disability benefits (such as DLA, PIP, or ADP), you should continue to receive Carer’s Allowance in the same way you do now.

3. The Carer’s Element in Universal Credit Is Also Increasing

The Carer’s Element is different to Carer’s Allowance.

It’s an extra amount added to your Universal Credit if:

You are a recognised carer,
You provide at least 35 hours of care each week, and
The person you care for receives DLA, PIP, or another qualifying benefit.

Carers receiving Universal Credit will see a slight increase in the Carer’s Element due to benefit uprating.

There is no earnings limit for the Carer’s Element.
Even if you earn too much to receive Carer’s Allowance, you may still be entitled to the Carer’s Element in UC.

4. If You Receive Both Carer’s Allowance and Universal Credit

Many carers receive both payments.

Here’s how it works:

Universal Credit subtracts the Carer’s Allowance from your UC.
But you still receive the Carer’s Element on top, meaning you don’t lose money overall.
In simple terms: your total income stays higher than it would be with UC alone.

Nothing in the Budget changes this arrangement.

5. The Two-Child Cap Ending in April 2026 Does Not Reduce Any Carer Payments

This change only affects families with three or more children who are currently not receiving the standard child element for their third or subsequent children.

When the cap is lifted in April 2026, these families will get more UC — including carers.

This does not reduce:

Carer’s Allowance
Carer’s Element
Disabled child elements
LCWRA payments
Child Benefit

Carers will not lose anything because of this change.

6. No Cuts to Carer Support in This Budget

This is important.

Carers have been worried about cuts to disability benefits or the Carer’s Allowance system.

But the Budget contains:

No cuts to Carer’s Allowance
No cuts to the Carer’s Element
No changes to eligibility
No changes to the care hours requirement
No changes to LCWRA for carers who are also unable to work

Both payments are being uprated, meaning they’re increasing — not decreasing.

7. What Carers Should Do Now

You don’t need to report anything to DWP for these increases to apply.

Here’s all you need to do:

Make sure the person you care for is correctly listed on your UC claim.
Make sure your caring role is recorded (this is usually already in the system).
Keep providing 35+ hours of care per week.
If you earn, stay within the Carer’s Allowance earnings limit to keep receiving both payments.
Watch for updated DWP rates in the coming months.

Other than that, everything should adjust automatically.

8. Final Summary

Here’s what today’s Budget means for carers: