A major change to the Carer's Allowance benefit will come into effect from Monday, April 7, allowing 60,000 more people to claim £333 a month.
The Department for Work and Pensions (DWP) is increasing the earnings threshold from £151 to £196 per week.
This significant change means carers can earn up to £45 more weekly whilst still receiving their benefit payments. The DWP estimates this will make 60,000 more people eligible for the £83.30 weekly payment.
Carer's Allowance provides £83.30 weekly to those who care for someone for 35 hours or more each week.
Carers don't need to live with or be related to the person they care for to qualify. Currently, carers lose their entitlement if they earn more than £151 weekly.
From Monday, the new threshold will increase to the equivalent of 16 hours per week at the National Living Wage.
This allows carers to maintain their benefit while earning substantially more.
The Government has described this change as the largest increase to the benefit since it was introduced in 1976.
MORE LIKE THIS:
It also means carers will be able to earn over £10,000 a year while still receiving their weekly payments.
The DWP has previously faced criticism for its 'cliff edge' approach to the benefit, where carers lose entitlement entirely when exceeding the weekly limit.
Some carers have been asked to repay thousands of pounds after inadvertently passing the earnings threshold, sometimes by as little as £1.
An independent review into Carers Allowance overpayments was launched by the Government in October 2024, led by Liz Sayce OBE. The review follows criticism of the DWP's handling of benefit overpayments.
Findings from this review are expected in early summer 2025.
The review aims to address concerns about how the system has operated, particularly regarding repayment demands from carers who unintentionally exceeded earnings limits.
Rates of Carer's Allowance have also increased this month in line with inflation, along with other DWP benefits.
The weekly payment has risen from £81.90 to £83.30, reflecting the 1.7 per cent inflation rate recorded in September 2024.
This is part of the annual uprating of welfare benefits, which includes PIP and Universal Credit.
State Pension rates, meanwhile, have increased by 4.1 per cent under the triple lock promise, based on average earnings growth.
Charity Carers UK has welcomed the earnings threshold increase but expressed concerns about recent proposed changes to Personal Independence Payments (PIP).
The charity warned that PIP changes could see 150,000 carers lose their eligibility for Carer's Allowance.
Helen Walker, chief executive of Carers UK, said: "We welcomed news that the limit on Carer's Allowance would rise, which is a much-needed step forward, helping carers in employment on a low income to increase their earning potential."
She added: "A full review of Carer's Allowance, including the eligibility criteria, is needed urgently."
Find Out More...
The Department for Work and Pensions (DWP) is increasing the earnings threshold from £151 to £196 per week.
This significant change means carers can earn up to £45 more weekly whilst still receiving their benefit payments. The DWP estimates this will make 60,000 more people eligible for the £83.30 weekly payment.
Carer's Allowance provides £83.30 weekly to those who care for someone for 35 hours or more each week.
Carers don't need to live with or be related to the person they care for to qualify. Currently, carers lose their entitlement if they earn more than £151 weekly.
From Monday, the new threshold will increase to the equivalent of 16 hours per week at the National Living Wage.
This allows carers to maintain their benefit while earning substantially more.
The Government has described this change as the largest increase to the benefit since it was introduced in 1976.
MORE LIKE THIS:
- DWP issues thousands of letters to Britons warning their benefit payments will be axed
- DWP issues warning over 'significant' benefits change on top of PIP and Universal Credit
- Online 'sickfluencer' earns £480k by showing Britons how to 'maximise' benefits - 'Not ashamed!'
It also means carers will be able to earn over £10,000 a year while still receiving their weekly payments.
The DWP has previously faced criticism for its 'cliff edge' approach to the benefit, where carers lose entitlement entirely when exceeding the weekly limit.
Some carers have been asked to repay thousands of pounds after inadvertently passing the earnings threshold, sometimes by as little as £1.
An independent review into Carers Allowance overpayments was launched by the Government in October 2024, led by Liz Sayce OBE. The review follows criticism of the DWP's handling of benefit overpayments.
Findings from this review are expected in early summer 2025.
The review aims to address concerns about how the system has operated, particularly regarding repayment demands from carers who unintentionally exceeded earnings limits.
Rates of Carer's Allowance have also increased this month in line with inflation, along with other DWP benefits.
The weekly payment has risen from £81.90 to £83.30, reflecting the 1.7 per cent inflation rate recorded in September 2024.
This is part of the annual uprating of welfare benefits, which includes PIP and Universal Credit.
State Pension rates, meanwhile, have increased by 4.1 per cent under the triple lock promise, based on average earnings growth.
Charity Carers UK has welcomed the earnings threshold increase but expressed concerns about recent proposed changes to Personal Independence Payments (PIP).
The charity warned that PIP changes could see 150,000 carers lose their eligibility for Carer's Allowance.
Helen Walker, chief executive of Carers UK, said: "We welcomed news that the limit on Carer's Allowance would rise, which is a much-needed step forward, helping carers in employment on a low income to increase their earning potential."
She added: "A full review of Carer's Allowance, including the eligibility criteria, is needed urgently."
Find Out More...