A major change to Carer's Allowance will mean thousands more unpaid carers qualify for support, according to DWP minister Sir Stephen Timms. He stated that the Department for Work and Pensions hopes to “do a better job” for these claimants.
Earnings Threshold Increased
Appearing on BBC Radio 5 earlier this week, Sir Stephen Timms said: “We owe a huge amount to these unpaid carers. They’re doing a fantastic job obviously looking after the people who they’re caring but actually they’re doing a great job for all of us and we want to do a better job in supporting them. The key thing we’re providing is our Carer’s Allowance benefit and one major change we’ve made is to increase the earnings threshold.”
In April, the Carer's Allowance earnings threshold was increased from £196 per week to £204 per week. This means that people claiming Carer's Allowance can earn up to £204 a week without jeopardising their benefit payment. Carer's Allowance is paid at a flat rate of £86.45 a week, which equates to around £340 a month. However, earning even £1 over the threshold results in the payment being stopped completely, as there is no tapering.
Impact on Claimants
Sir Stephen said that this change alone will mean “an extra 60,000 carers being able to claim”. He continued: “There are things we can do and we want to do a better job.” Earnings for Carer's Allowance include any income from employment and self-employment but are calculated after tax, National Insurance and expenses like pension contributions, equipment needed for your work or business expenses for those that are self-employed.
Things that don't count towards the earnings threshold include: money from an occupational or private pension; someone you live with contributing to living costs (but they cannot be a tenant or boarder); the first £20 a week and 50% of the rest of any income you make from someone boarding in your home; and loans or advance payments from employers.
Additional Support
The minister concluded by saying: “Carer’s Allowance isn’t the only financial support that’s being provided. Over a million people are getting that, but there’s also people receiving additional support for caring in Universal Credit, that’s for working age people, and Pension Credit for people above state pension age.” Other support unpaid carers may also be eligible for includes help from the local council, Council Tax reductions, Universal Credit, Pension Credit, and some grants and bursaries to help pay for courses or training.
