£2.47 an hour: the shocking reality of Carer’s Allowance
Carer’s Allowance was introduced in 1976. At the time, it was a landmark step. It recognised that unpaid carers were making a major contribution and needed financial support too. Nearly 50 years later, that recognition still matters. However, the benefit now looks badly out of step with the reality of modern caring.
From April 2026, Carer’s Allowance will rise to £86.45 a week. To qualify, a carer must provide at least 35 hours of care a week. That means the benefit works out at roughly £2.47 an hour. Put simply, that figure shows how little unpaid care is valued in financial terms.
Here is why the current system feels so out of date:
Carer’s Allowance was designed for a very different world
the weekly payment remains low, even after the April 2026 increase
the rules can make it hard to combine caring with paid work
the benefit can interact badly with Universal Credit and State Pension
many unpaid carers still face serious financial pressure
Why Carer’s Allowance no longer reflects modern caring
Today, unpaid carers are supporting family members, partners and friends through disability, illness and older age. In England and Wales alone, Census 2021 recorded around 4.7 million unpaid carers in England and 310,000 in Wales. Their contribution is huge. Yet the rules behind Carer’s Allowance still reflect an older picture of caring, work and family life.
Many carers now try to balance care with part-time work, changing hours and rising living costs. However, Carer’s Allowance still places tight limits on what that balance can look like. Even with the earnings threshold rising to £204 a week from April 2026, the system remains restrictive for people trying to stay connected to work while caring.
The financial reality for unpaid carers
The low hourly value is only part of the story. Financial pressure among unpaid carers is much wider than that.
Carers UK found that 33% of unpaid carers who only receive Carer’s Allowance are living in poverty, compared with 18% of non-carers. That gap shows the problem clearly. The benefit may provide some support, but for many people it is nowhere near enough.
The wider value of unpaid care makes that even starker. The economic value of unpaid care in the UK has been estimated at £184 billion a year. So while carers are quietly holding families, communities and public services together, the support they receive still falls far short of the scale of what they give.
Why the rules need a full review
A full review of Carer’s Allowance should not only look at the weekly rate. It should also examine how the benefit works in practice.
For example, claiming Carer’s Allowance can affect other benefits. GOV.UK says Universal Credit is reduced by an amount equal to the Carer’s Allowance payment. Overlapping benefit rules can also mean some people cannot receive the full payment alongside State Pension.
That is why reform needs to go beyond annual uprating. The questions are bigger than that. Does the system reflect how caring works in 2026? Does it support carers to stay financially stable? And does it recognise the real value of unpaid care?
Right now, the answer feels uncertain.
Why this matters now
Carer’s Allowance still matters. For many people, it is a vital part of the support available. However, it is also clear that the system no longer matches modern caring.
A benefit first introduced in 1976 should not still be relying on assumptions from another era. Unpaid carers deserve a system that reflects the pressures they face now, not the world of nearly 50 years ago.
Because when Carer’s Allowance works out at £2.47 an hour, it is hard to argue that unpaid carers are being properly valued.