Changes to Carer’s Allowance could soon make tens of thousands of more people eligible for the payment, which is worth £4,258 a year. The Government has confirmed plans to increase the upper earnings limit for the benefit, currently set at £151 a week, meaning more carers will be eligible for the DWP benefit, which pays £81.90 a week, or £4,258.80 a year.
The upper earnings rule has caught out many previous claimants of the benefit. As of May 2024, the upper earnings some 134,800 people had overpayments they owed the DWP, mostly due to carers exceeding the earnings limit. The current rules state that after tax and expenses are deducted, your income must not exceed £151 a week to receive the benefit.
Carers UK previously warned that many claimants were unknowingly being overpaid as they were “not understanding the rules”. A formal review into the overpayment scandal is to be carried out by the Government.
Suzanne Bourne, head of Carer Support at Mobilise, said: “It is especially important to be aware of exactly how much you earn – this earnings ‘threshold’ is where the recent issues have come from. Currently, it’s up to the individual to check they are not exceeding this limit to avoid having to repay any overpayments.
“Although there are plans to automatically alert people at risk of falling into this trap, this is not yet the case.” To qualify for Carer’s Allowance, you must care for someone for at least 35 hours a week and they must be on a qualifying benefit.
Another stipulation is that the person you care for needs to be on one of these benefits:
- Personal Independence Payment – daily living component
- Disability Living Allowance – the middle or highest care rate
- Attendance Allowance
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Attendance Allowance
- 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 – the middle or highest care rate
- Adult Disability Payment – daily living component at the standard or enhanced rate.
Mobilise offers a Carer’s Allowance checker tool to find out if you can claim the DWP benefit. A Carers UK report has revealed that carers frequently exceed the earnings limit due to fluctuating wages, pay rises, or employer errors such as late payments.
Detailing the struggles claimants have faced, one carer shared their experience being hounded by the DWP with regard to their overpayments: “It pushed me over the edge as the letters were very threatening and on top of my caring responsibilities it made me ill. I was scared and felt under constant threat from debt collectors and being taken to court.”
In light of these findings, Carers UK has urged for an increase in Carer’s Allowance by at least £11.10 a week and for an adjustment of the earnings threshold to match 21 hours per week at the National Living Wage.