The Department for Work and Pensions (DWP) has announced that 60,000 more people could become eligible for Carer's Allowance, a benefit worth £340 per month, following a change to the earnings threshold. DWP minister Sir Stephen Timms confirmed the update, stating that the government is committed to supporting unpaid carers.
Earnings Threshold Increased to £204 Per Week
In April, the Carer's Allowance earnings threshold was raised from £196 to £204 per week. This means claimants can now earn up to £204 weekly without losing their benefit. Previously, earning even £1 over the threshold resulted in the complete loss of the payment, as there is no tapering system. Sir Stephen noted that this change alone will allow an extra 60,000 carers to claim the benefit.
Speaking on BBC Radio 5, Sir Stephen 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."
What Counts as Earnings
Earnings for Carer's Allowance include income from employment and self-employment, calculated after tax, National Insurance, and expenses such as pension contributions, work equipment, or business expenses for the self-employed. However, certain types of income are excluded, including:
- Money from an occupational or private pension
- Contributions from someone you live with toward living costs (unless they are a tenant or boarder)
- The first £20 per week and 50% of any additional income from a boarder in your home
- Loans or advance payments from employers
Additional Support for Carers
Sir Stephen emphasized that Carer's Allowance is not the only financial support available. Over a million people currently receive the benefit, but additional support is provided through Universal Credit for working-age people and Pension Credit for those above state pension age. Other potential support includes help from the local council, Council Tax reductions, and grants or bursaries for courses or training.
The minister concluded: "There are things we can do and we want to do a better job."
