• Invalid Care Allowance, now Carer’s Allowance, was first introduced at the rate of £7.90 a week in 1976
• Fifty years on Carer’s Allowance, paid to those caring for a minimum of 35 hours per week, is worth £86.45 a week (2026/27 financial year) 
• If Carer’s Allowance had kept pace with increases in earnings, carers would receive an extra £36.93 each week or £160.46 a month on average
• On the 50th anniversary of the benefit being introduced, Carers UK is calling for a comprehensive review of Carer’s Allowance and other carer-related benefits

Unpaid carers are losing out on around £160 a month because Carer’s Allowance has failed to keep pace with rising earnings over the past 50 years.

Analysis of ONS data by Carers UK shows that Carer’s Allowance, currently £86.45 per week or £374.62 on average per month, would be worth around £123.48 a week or £535.08 every month if the benefit had kept pace with rises in average earnings since 1976.

While benefits are not typically linked to earnings growth, the widening gap highlights the real financial pressures carers face as living costs continue to rise. With gas and electricity bills averaging around £147 per month for a typical UK household - and prices expected to rise further this year - the gap is roughly equivalent to the cost of heating and powering a home.

Carer’s Allowance, paid to people providing at least 35 hours of care a week to a family member or friend who is older, disabled or has a long-term health condition, is the lowest benefit of its kind - equivalent to just £2.47 an hour.

Meanwhile, 62% of Carer’s Allowance recipients, around half a million carers, are living in poverty. More than 600 people give up work every day to care, often putting their own financial security at risk. Many of these households also face higher living costs linked to disability and long-term health conditions.

Research from Carers UK shows that nearly half of carers (49%) have cut back on essentials such as food, heating, clothing and transport over the past year. A third (32%) have taken on debt by using credit cards, bank loans or overdrafts, while 84% say their energy bills have increased.

Carers UK, then known as the National Council for the Single Woman and Her Dependents, led the campaign to establish Carer’s Allowance in 1976 which was first introduced at the rate of £7.90 a week. But in the 50 years since, society and the wider economy have changed significantly.

Recently the government has increased the earnings limit to 16 times the National Living Wage and is proposing a taper to remove the “cliff edge” earnings threshold, which is a positive step forward, but there are other elements of the benefit that still fall short of what carers need.

To mark the 50th anniversary of the benefit, Carers UK is now calling for a comprehensive review of Carer’s Allowance and related benefits. Members of the Carer Poverty Coalition, led by Carers UK, have sent a letter to the Secretary of State asking for a review which examines how caring intersects with employment, financial security and social security to ensure it properly values and supports all unpaid carers.

Helen Walker, Chief Executive of Carers UK, said:

“These figures are concerning because we hear regularly from carers who are providing far more than the 35 hours of care required to qualify for Carer’s Allowance while struggling to make ends meet. Many tell us that their income simply isn’t enough to cover the basics.

“With an ageing population, the demand for care is growing rapidly. Unpaid carers are increasingly stepping in to fill the gaps, often providing intensive support and managing complex health conditions. 62% of current and former carers say they had no choice in taking on the role because no other care options were available.

“Too many carers are being pushed into financial hardship because the support available has failed to keep pace with rising wages and living costs. Fifty years on from the introduction of Carer’s Allowance, it’s time for a full review to ensure the benefit properly recognises the vital role carers play and provides the financial security families need to keep caring.”

Analysis of ONS data by Carers UK:

• Our analysis estimates what Carer’s Allowance would be worth today if it had increased in line with average earnings since its introduction in 1976 (when it was known as Invalid Care Allowance). The original weekly rate in 1976 was £7.90.
• Average weekly earnings in 1976 were approximately £47.47, based on a full-year average of official data. See ONS Average Weekly Earnings: Whole Economy Historic Level (£): Non-Seasonally adjusted here: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/timeseries/md9m/emp
• The most recent comparable figure for average weekly earnings (including bonuses) is £742 per week. See ONS Average weekly earnings in Great Britain: March 2026: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/employmentandemployeetypes/bulletins/averageweeklyearningsingreatbritain/march2026
• This means that average earnings are around 15.63 times higher today than in 1976. Applying this growth factor to the original benefit level (£7.90) gives an estimated equivalent of £123.48 per week in 2026.
• This calculation adjusts for earnings growth rather than inflation, reflecting how wages — and living standards — have changed over time. Most benefits are uprated in line with prices; using earnings instead provides an alternative benchmark for assessing the relative adequacy of support over the long term.
• The difference between the actual rate of Carer’s Allowance (£86.45 a week at 2026/27 rates) and what it would be if it had kept pace with average earnings rises over the past 50 years (£123.48 a week) is £37.03 a week.
  o    £37.03 x 52 weeks = £1,925.56 difference per annum
  o    £1,925.56 / 12 months = £160.46 a month

While Carer’s Allowance is normally paid either weekly or 4-weekly, we have used the average monthly figure here in order to compare to the costs of average monthly bills.

The average monthly energy bill in the UK is £147 for a medium-sized household (2-3 people). This includes both gas and electricity. Costs vary depending on location, household size, and energy usage: https://www.edfenergy.com/energywise/what-is-the-average-energy-bill-in-the-uk 

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