DWP Carer's Allowance to see 'largest increase' since 1970 in welcome relief for thousands
BUDGET2024: There have been big changes announced for carers
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Rachel Reeves has announced the weekly earnings limit for Carer's Allowance will be increased to the equivalent of 16 hours at the National Living Wage per week.
This is "the largest increase" to the Benefit since it was introduced in 1976.
The Chancellor has confirmed that the working limit to Carer's Allowance will be lifted from next April.
The weekly earnings limit will increase from £151 a week to £181,Reeves said.
This means carers can earn more money from work and still claim the benefit.
The move will mean 60,000 more carers will be eligible for the benefit.
Chancellor of the Exchequer Rachel Reeves delivering her Budget to the House of CommonsPAReeves says the increase will be equivalent of more than £10,000 a year and is “the largest increase in carers’ allowance since it was introduced in 1976”.
At the moment, carers receive £81.90 a week if they care for someone at least 35 hours a week and if they get certain benefits. These are:
- Personal Independence Payment - daily living component
- Disability Living Allowance - the middle or highest care rate
- Attendance Allowance
- Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit
- Constant Attendance Allowance at the basic (full day) rate with a War Disablement Pension
- Armed Forces Independence Payment
- Child Disability Payment - the middle or highest care rate
- Adult Disability Payment - daily living component at the standard or enhanced rate
Helen Walker, Chief Executive of Carers UK said it was "delighted" to hear that the working threshold had been lifted. She said the Government was taking "swift action" to end the "significant injustice" to unpaid carers.
She added: "It's been heartbreaking and frustrating to hear carers having to choose between paid work and Carer's Allowance simply because of a rise in the National Living Wage - something that is supposed to benefit low paid workers, not put them out of work. We're delighted that this is being addressed.
"Carers have told us that juggling work and care is critical for them, keeping a toe in the labour market whilst caring significant hours for their older, ill and disabled relatives and friends.
"This is a really important poverty prevention measure and will help many carers, particularly women, stay in the labour market.”
Liz Kendall, Work and Pensions Secretary has also launched an independent review into Carer's Allowance overpayments.
Reeves said she was "concerned about the cliff-edge in the current system and the issue of overpayments".
She said: "My right honourable friend, the Work and Pensions Secretary, has announced an independent review to look at the issue of overpayments, and we will work across the house to develop the right solutions."
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