UK government to scrap carers' benefit cliff edge in pre-Budget cost-of-living plan
The government will replace the punitive Carers’ Allowance cliff edge with a gradual taper and introduce a series of cost-of-living measures ahead of the Budget.
On the eve of the Budget, the UK government pledged to eliminate the Carers’ Allowance cliff edge that has penalised unpaid carers for marginal earnings, replacing it with a taper that reduces the benefit by £1 for each extra pound earned. Chancellor John Healey will also raise the national living wage to £13.20 and align the minimum wage for 18- to 20-year-olds with the national rate. The package includes a permanent 55p tax-free mileage allowance, lower tariffs on items like chocolate and beans, and a freeze on fuel duty at 52p per litre.
Prime Minister Andy Burnham highlighted the focus on everyday affordability, adding expanded parental pay for over 150,000 families and a £432 million fund to help the homeless by Christmas. The measures are presented as part of a broader effort to give families and businesses breathing space amid the cost-of-living crisis.
Why it matters
The reforms directly affect millions of unpaid carers and low-income workers facing rising living costs.
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