What’s changed

Two developments in January are worth noting:

• The Employment Rights Act 2025 is now law (Royal Assent: 18 December 2025) and will be introduced in stages across 2026–2027.

• MPs have criticised senior DWP officials over the Carer’s Allowance overpayments scandal. Ministers have ordered a reassessment of around 200,000 cases, with debt relief expected for many unpaid carers.

Who this affects

Most relevant to:

• Carers who are employed (care homes, domiciliary employers, agencies with employed staff)
  The Employment Rights Act changes apply most directly here.

• Unpaid carers (Carer’s Allowance claimants)
  The overpayments review affects these households.

Indirectly relevant to:

• Self-employed carers, because sector expectations around rights, documentation, and “good practice” often shift when employment law changes.

What this means in real life

• Nothing changes overnight for self-employed carers.
  This is not a “you’re now employed” situation.

• Over 2026–27, you may notice:

  • more questions from families about “rights”, working time, rest, and what’s “allowed”

  • employers and agencies tightening contracts and procedures, which can influence expectations across the wider care sector

• The Carer’s Allowance review is a reminder that carers are being heard and that systems can be challenged when unfairness occurs — but this issue mainly affects unpaid carers and benefits, not self-employed care income.