For the second day of Carers Week, John Perryman, Head of Policy and Public Affairs, has shared a blog about tackling carer poverty.
Unpaid carers play a vital but often invisible role in our society — supporting family members and friends who are older, disabled, or seriously ill. Yet despite their contribution, many face deep financial hardship as a direct result of their caring responsibilities. This Carers Week, with our theme “Caring About Equality,” it's an opportunity to explore what this economic inequality says about how we value care in the UK.
Rising inflation and the ongoing cost-of-living crisis have had a severe impact on unpaid carers. Many are now unable to afford essentials like food, fuel, and heating. Even more worrying, many expect their situation to worsen in the months ahead.
Carers UK's research with WPI Economics in 2024 laid bare the scale of this crisis: 1.2 million unpaid carers are living in poverty, including 400,000 in deep poverty. Long hours of care, limited access to paid employment, and reliance on income-related benefits are key factors driving this deprivation.
In the lead-up to the last General Election, Carers UK urged all political parties to commit to real action. We called for a full review of the connection between caring and poverty, a rise in the deeply inadequate Carer’s Allowance (currently just £83.30 a week for 35 hours of care), and long-term reforms to ensure the system is fairer and more sustainable.
In the past year, there have been some welcome developments. The Labour Government’s decision to raise the Carer’s Allowance earnings limit, allowing 60,000 more part-time working carers to qualify, marked a positive step. Equally significant was the establishment of an independent review, led by Liz Sayce OBE, into the long-standing issue of Carer’s Allowance overpayments. For years, carers have been penalised—sometimes for earning just a few pence over the threshold—with the average overpayment standing at a shocking £4,000. The findings of this review, expected soon, must lead to a reformed, fairer system and compensation for those unfairly affected.
However, these positive steps are at risk of being overshadowed. In March 2025, the Government proposed reforms to disability benefits that would drastically reduce eligibility for Personal Independence Payment (PIP)—a key gateway to Carer’s Allowance. If implemented, these changes could strip 150,000 carers of their benefits by the end of the decade and cut £500 million from carers’ support — the largest rollback since Carer’s Allowance was introduced in 1976.
The consequences would be devastating. Already, carers face a poverty rate 50% higher than non-carers (27% compared to 18%). Meanwhile, the care they provide is estimated to be worth £184 billion a year, effectively propping up our broken health and social care systems.
We cannot afford to turn our backs on carers. At a minimum, the Government must reconsider these proposed cuts and instead work to strengthen financial support for carers. But beyond this, we need systemic change: better access to benefits, more flexible working opportunities, and broader societal recognition of the value carers bring to our society.
While our (and the Carer Poverty Coalition’s, which we established in 2023) ultimate goal of ending carer poverty may take time, the steps we take now can and must improve carers’ lives. No carer should be pushed into poverty because of the care they provide. Raising awareness among policymakers, parliamentarians, and the public is crucial. Only through collective pressure can we secure the reforms carers so urgently need — and deserve.
This Carers Week, we ask that join with us in saying "We care about equality for carers" and campaign with us to help put an end to carer poverty.