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Budget Shake-up Expected to Bring Major DWP Benefit Changes for Households

The taper would cut Carer’s Allowance by £1 for every extra £1 earned, ending the current rule that strips the full benefit.

  • On Wednesday, Chancellor John Healey will present his first budget, expected to replace the Carer's Allowance 'cliff edge' with a taper where benefits fall by £1 for every extra £1 earned above the limit.
  • Currently, 1.4 million claimants face a sudden loss of support if earnings exceed set limits, a practice campaigners have long described as a scandal affecting unpaid carers.
  • The Budget includes a £432 million boost to tackle homelessness disclosed on Monday, alongside parental pay extensions for more than 150,000 parents annually and tariff cuts on popular food items.
  • Prime Minister Andy Burnham stated the government will 'go further to give families and businesses the breathing space they need' through these 'everyday fixes' at the Budget.
  • Further reports indicate the national living wage is expected to rise by nearly 4% to £13.20 an hour, while Healey reportedly plans to freeze fuel duty at 52p per litre for the first time in 16 years.
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Budget shake-up expected to bring major DWP benefit changes for households

Carers could see a major change to Carers’ Allowance as the Government moves to end a controversial earnings rule that can strip people of their entire benefit for earning just a few pence too much.

·Bradford, United Kingdom
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Devon Live broke the news in Exeter, United Kingdom on Tuesday, October 27, 2026.
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