The Department for Work and Pensions (DWP) has announced an important change to Carer’s Allowance, which will enable an additional 60,000 people to apply for the benefit. As of April 7, the earnings threshold has been raised from £151 to £196 per week, allowing carers to earn more while still receiving the £333 monthly payment.
This adjustment marks a significant shift for many carers, who have often been restricted by the previous earnings cap. The move is expected to benefit those who balance care responsibilities with work, making it easier for them to increase their weekly earnings without jeopardising their eligibility for financial support.
A Much-Needed Change for Carers
The Carer’s Allowance, worth £83.30 per week, is designed to assist those who dedicate significant time to caring for individuals with severe disabilities or illnesses. Until recently, the strict earnings cap of £151 per week meant that many carers could not increase their working hours or take on higher-paid work without losing their benefits.
With the new cap of £196, carers will now be able to earn an additional £45 per week, providing more financial flexibility.
According to Carers UK, this change is the most substantial improvement to the earnings threshold since the allowance was first introduced in 1976. Helen Walker, the CEO of Carers UK, commented that this adjustment would help carers “take on more work” without the financial penalty of losing their benefits.
It is expected to support carers in their efforts to improve their quality of life while continuing to provide vital care.
Who Qualifies for Carer’s Allowance?
To qualify for Carer’s Allowance, applicants must meet specific criteria. They need to be over 16 years of age and provide at least 35 hours of care per week to someone who receives certain means-tested benefits.
These include Personal Independence Payment (PIP) or Disability Living Allowance (DLA), among others. Additionally, applicants must earn £196 or less after taxes, National Insurance, and allowable expenses are deducted, as stipulated by the DWP.
The DWP’s changes also include an update to the eligible expenses, allowing carers to account for things like pension contributions, travel costs, and business expenses if self-employed.
However, while the allowance is a taxable benefit, carers should be aware that receiving it may affect other benefits they are receiving, such as the severe disability premium or council tax reductions.
