Upcoming Changes to Carer’s Allowance: What You Need to Know
A significant change to the Carer’s Allowance is set to take effect shortly, and it could impact your payments. Carer’s Allowance is a benefit designed for individuals who provide care for someone with a disability, currently valued at £81.90 per week.
The earnings limit for Carer’s Allowance is about to increase to £196 per week. This change means that if your earnings exceed this amount, you will no longer qualify for the allowance and must inform the Department for Work and Pensions (DWP). The current earnings cap is £151 per week, but this will rise on April 7. This £45 increase represents the largest adjustment to the earnings threshold since the allowance was first introduced in 1976. As a result, many more caregivers will be eligible for this financial support.
However, it’s crucial to note that if your earnings surpass £196, you will become ineligible for Carer’s Allowance. Should you exceed this limit, it’s imperative to report this change to the DWP. Failing to do so could lead to overpayments, which you would then be required to repay. Ignoring the repayment process can escalate the situation to legal action, including being taken to county court.
Recent statistics from the government indicate that over 140,000 individuals receiving Carer’s Allowance are currently in debt to the DWP due to overpayment issues. In some cases, individuals have found themselves liable to repay as much as £20,000 after inadvertently exceeding the earnings limit.
The increase in the earnings limit follows advocacy efforts from various charities, including Carer’s UK. After the recent budget announcement, Helen Walker, the chief executive of Carer’s UK, expressed her support, stating: “It’s fantastic to hear that the Government will increase the earnings threshold for Carer’s Allowance, allowing an estimated 60,000 more caregivers to access this essential benefit while balancing work and caregiving responsibilities. This adjustment is a critical step in preventing poverty among caregivers, especially women, and will undoubtedly make a substantial difference for many.”
What is Carer’s Allowance?
Carer’s Allowance is a financial benefit available to those who care for someone receiving qualifying benefits for at least 35 hours each week.
Reporting Changes in Earnings
If you exceed the earnings limit, it is classified as a “change in circumstances,” rendering you ineligible for the Carer’s Allowance. To report this change, visit the government’s website at www.gov.uk/carers-allowance-report-change. There, you will find a button that guides you through the reporting process. Make sure to have your National Insurance (NI) number ready, along with details about the person you care for and specifics about the earnings change.
Other circumstances that require reporting include:
- Changing, starting, or leaving your job
- Ceasing to be a caregiver
- Not providing at least 35 hours of care each week
- Taking a holiday or entering a hospital, even if care is arranged during your absence
- The person you are caring for going into a hospital, care home, or taking a holiday
The current weekly rate of Carer’s Allowance is £81.90, which will increase to £83.30 next month. You do not need to be related to the individual you are caring for, nor do you need to live with them to qualify for this benefit.
If you are in receipt of Carer’s Allowance, you will also receive National Insurance credits, which contribute to your NI record. The eligibility for Carer’s Allowance is based on the person receiving care qualifying for specific benefits, including:
- Personal Independence Payment – daily living component
- Disability Living Allowance – middle or highest care rate
- Scottish Adult Disability Living Allowance – middle or highest care rate
- Attendance Allowance
- Pension Age Disability Payment
- 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 – middle or highest care rate
- Adult Disability Payment – daily living component at the standard or enhanced rate
The individual you are caring for must also require assistance with essential tasks, including washing, cooking, attending doctor’s appointments, and managing household responsibilities such as paying bills or grocery shopping. Carer’s Allowance is available to residents in England, Wales, or Scotland aged 16 or over.
It’s important to note that receiving Carer’s Allowance may influence the benefits received by the person you care for. For instance, they may lose a severe disability premium or additional amounts for severe disability if they are on Pension Credit.
For more information on how to apply for Carer’s Allowance and to check your eligibility, visit www.gov.uk/carers-allowance/how-to-claim.
If you’re facing financial difficulties, don’t hesitate to reach out by emailing [email protected].
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