A recent change by the Department for Work and Pensions (DWP) has opened the door for an additional 60,000 people to claim Carer’s Allowance. This adjustment means that carers will receive an income boost of £333 every four weeks, helping them financially while caring for someone.
The eligibility threshold for Carer’s Allowance has been raised from £151 to £196 per week, after tax, National Insurance, and expenses. This change is expected to make over 60,000 more carers eligible by the end of the decade, as projected by the DWP.
How Does the Carer’s Allowance Increase Help?
With the increase in the earnings threshold, more carers will now qualify for the Carer’s Allowance, giving them an extra £333 every four weeks.
Helen Walker, Chief Executive of Carers UK, explained:
“We know that the earnings limit is a barrier to taking on more work for carers. Some have cut back hours, switched jobs or even given up work completely. This will make a notable difference to many.”
This adjustment helps carers balance their work and caring responsibilities more easily without having to worry about exceeding the earnings threshold.
Carer’s Allowance Payment Rates and Timing
Carer’s Allowance has also seen a recent increase in the weekly rate, rising from £81.90 to £83.30. However, claimants will notice the increase in their payments only after April 7, once a full four-week payment cycle has passed.
Currently, Carer’s Allowance is paid out at £333.20 every four weeks. It can also be claimed alongside Universal Credit, though there are some adjustments to consider.
Effect of Carer’s Allowance on Universal Credit
If you’re receiving Universal Credit and Carer’s Allowance, your Universal Credit payments will be reduced by an amount equivalent to £360.96 per month due to the Carer’s Allowance.
However, this reduction can be partially mitigated by claiming the Carer Element of Universal Credit, which adds £201.68 to your Universal Credit payment.
Eligibility for Carer’s Allowance
To be eligible for Carer’s Allowance, you must meet the following criteria:
- Be at least 16 years old
- Spend at least 35 hours per week caring for someone
- The person you care for must already receive one of the following benefits:
- Personal Independence Payment (PIP) – daily living component
- Disability Living Allowance (DLA) – middle or highest care rate
- Scottish Adult Disability Living Allowance – middle or highest care rate
- Attendance Allowance
- Pension Age Disability Payment
- Constant Attendance Allowance with an Industrial Injuries Disablement Benefit
- Constant Attendance Allowance with a War Disablement Pension
- Armed Forces Independence Payment
- Child Disability Payment – middle or highest care rate
- Adult Disability Payment – daily living component at the standard or enhanced rate
Importantly, if you receive Carer’s Allowance, the person you care for will lose the Severe Disability Premium, which can be part of certain benefits like Income Support, Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance, and Housing Benefit. This could also affect their eligibility for reduced Council Tax.
Who Is Not Eligible for Carer’s Allowance?
You are not eligible for Carer’s Allowance if:
You share caring responsibilities with someone else who is already claiming Carer’s Allowance or Universal Credit’s Carer Element.
The recent changes to Carer’s Allowance are a welcome relief for many, offering financial support to carers who may be struggling to balance their work and caregiving responsibilities. By raising the eligibility threshold, the government is making it easier for more people to qualify for this important benefit.
For anyone receiving Universal Credit or caring for someone who qualifies for benefits, this increase could mean a significant financial boost. Just be aware of the reduced Universal Credit payments and apply for the Carer Element to ensure you receive the full support available.
FAQ’s
What is Carer’s Allowance and how does it help carers?
Carer’s Allowance is a financial support of £333.20 every four weeks for those who care for someone with a disability. Recent changes make it easier for more carers to qualify.
How has the Carer’s Allowance payment been increased?
Carer’s Allowance has been increased from £81.90 to £83.30 per week, and more people are now eligible due to the higher earnings threshold of £196 per week.
How does Carer’s Allowance affect Universal Credit payments?
If you receive Carer’s Allowance along with Universal Credit, your Universal Credit payments will be reduced by £360.96 per month, though you can claim the Carer Element to reduce this impact.
Who is eligible for Carer’s Allowance?
You must be at least 16 years old, care for someone for at least 35 hours per week, and the person you care for must receive specific disability-related benefits like PIP or DLA.
What is Transitional Protection in Universal Credit?
Transitional Protection ensures that if your Universal Credit payments are reduced during the migration process, you will receive extra support to cover the difference in your payment amount.
Oh dear, thousands will benefit while millions won’t!