Budget announcement: What unpaid carers need to know

A person using a calculator and a laptop.

The latest Budget included several announcements that could affect unpaid carers and their families, including changes to Carer’s Allowance, help with household bills and measures relating to fuel costs.

Here’s a summary of the key announcements:

  • Carer’s Allowance: The Government plans to change the earnings rules so carers can earn more without losing their entire Carer’s Allowance payment if they exceed the earnings limit. Around 48,000 carers are expected to benefit when the changes come into effect in 2030–31.
  • Energy bills: Around 20 million households in council tax bands A to D are set to receive a £100 energy payment this winter. The VAT cut on electricity bills will also be extended until July 2027.
  • Gas standing charges: Fixed daily charges on household gas bills are set to be removed. Further details are awaited on how this will affect households with higher energy needs.
  • Fuel duty: The 5p fuel duty cut will be extended until July 2027.
  • State Pension: People receiving the full new State Pension will be protected from paying income tax on income up to that amount during this Parliament.

Some of these measures will take effect in the coming months, while others are planned for future years.

Carers UK has published a detailed breakdown of the Budget announcements, including its response and further information about what they mean for unpaid carers.

Read more on the Carers UK website