New Carer’s Allowance Rules Could Benefit Thousands

Recent changes to Carer’s Allowance rules allow thousands of new carers to qualify. The increase in the earnings threshold to £196 per week broadens eligibility for this essential support.

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New Carer's Allowance Rules Could Benefit Thousands
New Carer's Allowance Rules Could Benefit Thousands | en.Econostrum.info - United Kingdom

Recent changes to the Carer’s Allowance regulations have opened the door to much-needed financial support for thousands of additional carers. Starting this month, the weekly amount for Carer’s Allowance has increased to £83.30, totaling £333.20 every four weeks.

This marks a 1.7% increase from the previous amount of £81.90. Along with the rise in allowance, the earnings threshold has also been raised, allowing up to 600,000 additional carers to benefit from the allowance.

These adjustments reflect growing concerns about the financial difficulties carers face and follow reports from sources such as the Manchester Evening News, which highlighted the challenges many unpaid carers were experiencing.

What’s Changed in the Carer’s Allowance Rules?

The Department for Work and Pensions (DWP) has made two key changes to the Carer’s Allowance. First, the weekly amount has been raised by £1.40, now standing at £83.30 per week, up from £81.90. This means carers can receive £333.20 over a four-week period, a slight but important increase.

The second major change is the rise in the earnings threshold for eligibility. Previously, carers were limited to earning £151 a week. Now, they can earn up to £196 per week without losing their entitlement to the allowance.

This adjustment comes in response to widespread concerns that carers were being penalized for exceeding the earnings cap by just a small amount. The increase in the threshold aims to help carers who face fluctuating hours or pay rates, giving them greater flexibility without risking their allowance.

Why This Change Is Important for Carers

For many, this increase in the earnings limit provides much-needed flexibility. Carers often face fluctuating hours or varying pay rates, making it difficult to stay within strict earnings boundaries. The changes also address concerns that carers were being forced to repay large sums when their income slightly surpassed the previous limit.

The difficulties faced by carers under the old system have been highlighted by several cases. For instance, Helen Grater, a supermarket employee, was instructed to repay nearly £6,000 after she took on an extra shift at Sainsbury‘s while caring for her seriously ill partner. She exceeded the earnings limit by a small margin, which led to the overpayment demand.

Similarly, George Henderson, a full-time carer and father-of-three, was forced to sell his home to avoid imprisonment after being prosecuted for receiving an overpayment of Carer’s Allowance.

He had been caring for his children and was managing his household finances while relying on the allowance. These cases underscore the complexity and potential harshness of the previous earnings rules.

Who Is Eligible for Carer’s Allowance?

Carer’s Allowance is available to individuals who care for someone for at least 35 hours a week. To qualify, the person receiving care must also be in receipt of one of several qualifying benefits, including :

  • Disability Living Allowance (middle or highest care rate)
  • Attendance Allowance
  • Personal Independence Payment (daily living component)
  • Scottish Adult Disability Living Allowance (middle or highest care rate)
  • Pension Age Disability Payment
  • Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit
  • Armed Forces Independence Payment
  • Constant Attendance Allowance at the basic (full day) rate with a War Disablement Pension
  • Child Disability Payment (middle or highest care rate)
  • Adult Disability Payment (daily living component at the standard or enhanced rate)

This rule change is expected to significantly help carers, particularly those who have struggled with the complex and sometimes unforgiving income rules in the past. Carers have expressed frustration with the previous system, where even a small change in income could result in having to repay substantial amounts.

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