In a major win for UK carers, the Department for Work and Pensions (DWP) has confirmed a £45 weekly earnings boost for Carer’s Allowance. This increase is set to benefit thousands of Britons who rely on this financial support to care for loved ones. Starting from April 7, 2025, the earnings limit for Carer’s Allowance will rise from £151 to £196 per week. This significant change allows carers to earn more without losing their benefits, marking the largest increase in the allowance’s 48-year history. This move is welcomed by many, though there’s still work to be done to address concerns around the allowance’s overall adequacy.
DWP Confirms £45 Weekly Earnings Boost
| Topic | Details |
|---|---|
| Earnings Limit Increase | The weekly earnings limit for Carer’s Allowance will rise by £45, from £151 to £196. |
| Effective Date | The change will take effect on April 7, 2025. |
| Annual Earnings Boost | This change will allow carers to earn an additional £2,340 per year without losing their entitlement. |
| Carers Affected | Over 60,000 carers are expected to benefit by 2029 from this increase. |
| Current Weekly Allowance | The weekly allowance of Carer’s Allowance remains at £83.30 per week. |
| Carers UK’s Concerns | Despite the increase, Carers UK has expressed concerns about the low level of the weekly allowance. |
| DWP Review | The DWP is conducting an independent review into overpayments related to Carer’s Allowance. |
The DWP’s announcement of a £45 weekly earnings boost for Carer’s Allowance is a long-awaited relief for many carers in the UK. The increase in the earnings threshold allows carers to work more hours, support their families, and continue providing care without risking their financial stability. While the weekly allowance remains low, this is a positive step toward addressing the challenges faced by unpaid carers. With the DWP conducting a review of overpayments and pledging improvements, we can only hope that this marks the beginning of further reforms that will better support carers in the future.
What is Carer’s Allowance?
Carer’s Allowance is a state benefit designed for individuals who provide regular care to someone with a disability or illness. This allowance helps people who are not earning much money but still spend a lot of time taking care of others. It’s a vital financial lifeline for many unpaid carers who often juggle their caregiving responsibilities with work, family life, and personal well-being.
The allowance aims to ensure that carers have a basic income to support them while they dedicate themselves to the care of someone in need. Previously, many carers had to choose between working more hours to make a living or cutting back on work to meet the threshold required for the allowance. This increase in the earnings limit will offer more flexibility.
Why is This Boost Important?
The decision to raise the Carer’s Allowance earnings limit by £45 a week is a huge win for thousands of carers who have long been advocating for better financial support. Carers, especially those with limited income, face a daily challenge of balancing work with their caregiving duties. The current rules were seen as unfair, often putting carers in a “cliff-edge” situation where earning just a little bit more could result in losing the allowance altogether.
The new £45 weekly boost will allow carers to earn more without jeopardizing their benefits. This will directly impact their ability to provide better care, support their families, and improve their financial stability. In practical terms, carers can now work more hours, take on extra shifts, or increase their income in other ways without having to worry about losing their Carer’s Allowance.
Breaking Down the Changes
1. What’s Changing?
- Starting April 7, 2025, carers will be allowed to earn up to £196 per week (previously £151) without losing their Carer’s Allowance.
- The amount of Carer’s Allowance itself remains the same at £83.30 per week, but this increase in earnings will help carers earn more without facing the tough decision of whether to take on extra work and risk losing benefits.
2. How Does This Affect Carers?
Carers who are already receiving the allowance will be able to earn more money without being penalized. This means that carers with lower earnings can now work extra hours or pursue additional income without being forced to choose between their livelihood and caregiving responsibilities.
3. Financial Impact:
For a carer, this adjustment means an additional £2,340 in potential annual earnings without affecting their benefits. That’s a huge boost, particularly for those struggling to make ends meet.
4. Real-Life Example:
- Sarah, a mother and carer, had to limit her hours as a part-time waitress because her earnings were too close to the Carer’s Allowance threshold. With the new changes, she can work more hours, increase her income, and still receive the allowance. This change gives her the financial flexibility she needs to improve her standard of living and continue caring for her disabled son.
5. Economic and Emotional Impact of Caregiving
The economic and emotional costs of caregiving are enormous. According to a 2023 report by Carers UK, there are over 6.5 million carers in the UK, many of whom are struggling with mental health issues and financial difficulties due to the heavy responsibility of caregiving. The new earnings boost addresses some of these challenges but is just a step in the right direction.
Carer’s Allowance: 2024 vs. 2025
Let’s see how the Carer’s Allowance is changing for the better:
| Feature | 2024/25 (Prior to April 2025) | 2025/26 (From April 2025) |
| Weekly Earnings Limit | £151 | £196 |
| Weekly Allowance Rate | £81.90 | £83.30 |
| Annual Allowance (approx.) | £4,258.80 | £4,331.60 |
| Beneficiaries | Existing eligible carers | Existing and ~60,000 new eligible carers by 2029/30 |
The Bigger Picture: What’s Next for Carers?
While the earnings limit increase is an important step, there’s still much work to be done to improve Carer’s Allowance. The weekly allowance is still one of the lowest in the UK, and advocacy groups such as Carers UK continue to call for further reforms. The aim is to provide carers with better financial support, acknowledging the crucial role they play in society.
Furthermore, the DWP’s ongoing review of Carer’s Allowance overpayments is crucial. Many carers have faced issues with delayed notifications or problems with the system, leading to unnecessary debt. This review will ensure that such mistakes are avoided in the future and that carers are treated fairly.
International Perspective: How Does the UK Compare?
In countries like Australia and the USA, carers receive more financial assistance. For example, in Australia, carers can earn up to AUD 500 per fortnight (approximately £250 per week) without losing their benefits, a significantly higher limit than the UK’s current £151. Similarly, in the USA, Family Caregiver Support Programs provide not only financial aid but also training and respite services for caregivers.
This comparison shows that while the UK’s £45 increase is a step forward, there’s still room for improvement to match global standards.
FAQs
1. Who qualifies for Carer’s Allowance?
To qualify for Carer’s Allowance, you must:
- Be at least 16 years old.
- Provide regular care to someone who is receiving certain benefits due to illness or disability.
- Earn less than £151 a week (before taxes) from employment or self-employment.
2. How do I apply for Carer’s Allowance?
You can apply for Carer’s Allowance through the DWP website. The process involves providing details about the person you care for, your earnings, and your caregiving responsibilities.
3. Will the £45 weekly increase affect my existing benefits?
No, this increase will not affect any other benefits you are receiving. The goal is to give you more flexibility in earning without losing your Carer’s Allowance.
4. What should I do if I earn more than the limit?
If you earn more than the limit, it’s important to report your earnings to the DWP. Otherwise, you risk facing an overpayment situation, where you could be asked to repay the amount you received incorrectly.
