TENS of thousands of Brits have been given an unexpected cash boost with a major benefits upgrade being announced.
Anyone who claims Carer’s Allowance is now set to pocket an extra £4,344 a year as the threshold for earners is due to move from £151 all the way up to £191.
Tens of thousands of Brits have been given an unexpected cash boost with the government announcing a major benefits upgrade[/caption]
Carer’s Allowance is a helpful benefit paid to those spending a minimum of 35 hours a week caring for someone with an illness or disability.
It is currently paid at a weekly rate of £81.90 and anyone on the benefit is allowed to have a second income from a job.
But this price is now due to go up to £83.30 under Labour’s new budget plan.
Another major change sees drastic improvements to the minimum amount a person can earn before claiming.
Under current rules, anyone who earns more than £151 per week is excluded from the benefit.
Chancellor Rachel Reeves announced last month though that the upper limit was due to stretch by up to £40 in April 2025.
During her maiden Budget speech she announced changes to the benefit with it now finally being confirmed as rising to £191.
It is the equivalent of 16 hours a week for people on the living wage.
The announcement means an extra 60,000 carers will be eligible for Carer’s Allowance.
The £40 uplift will be the largest increase in the threshold since the benefit was introduced in 1976.
Helen Walker, chief executive of Carers UK, said: “It’s great that the Government seems to be taking swift action to end what we feel is a significant injustice for some of the most deserving people of this country, unpaid carers.
“We’re delighted that this is being addressed.”
The boost will also help those who have suffered recently when being made to payback the benefits if they earn too much.
Rules state that anyone must pay back all of the benefit they were given while earning over the £151 weekly limit.
It has seen some carers forced to pay back huge sums to the Government worth thousands of pounds.
Figures from the Department for Work and Pensions (DWP) reveal that over 134,500 carers repaid a total £251million back in 2023/24.
The Sun has previously highlighted cases where some individuals were required to repay up to £20,000 after unknowingly breaching carer’s allowance rules.
You can apply for the carer’s allowance by visiting www.gov.uk/carers-allowance/how-to-claim online.
What is Carer’s Allowance?
CARER’S allowance is a UK benefit designed to help people who have caring responsibilities for more than 35 hours each week.
Those eligible get £81.90 a week paid directly into bank accounts.
To qualify, the person you care for must already get one of these benefits:
- Personal independence payment (PIP) – daily living component
- Disability living allowance – the middle or highest care rate
- 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
You don’t have to be related to the person or live with them to apply.
But if you share caring responsibilities with someone else, only one of you can make a claim.
The type of care you provide can vary, but includes things such as helping with washing or cooking, taking the person to medical appointments or helping out with household tasks such as shopping or organising bills.
To get the benefit, you must also meet a certain set of criteria:
- You must be 16 or over
- You have to spend at least 35 hours a week caring for someone
- You need to have been in England, Scotland or Wales for at least two of the last three years (this does not apply if you’re a refugee or have humanitarian protection status)
- You must normally live in England, Scotland or Wales or live abroad as a member of the armed forces (you might still be eligible if you’re moving to or already living in an EEA country or Switzerland)
- You cannot be in full-time education
- You must not be studying for 21 hours a week or more
- You cannot be subject to immigration control
- You will also have to meet certain earnings criteria in order to get the benefit.
Your earnings must also be £151 or less a week after tax, National Insurance and expenses.
What to do if you breach the earnings limit
If you breach the £151 earnings limit, you should try and proactively report it to the DWP as it is classed as a change in circumstances.
You can report any change in circumstances online via the Government’s website.
But you’ll need your National Insurance (NI) number to hand, details of the person you’re caring for and details of the change.
If you have been overpaid Carer’s Allowance, you will have to pay it back in full or instalments via the DWP Debt Management platform.
This is also on the Government’s website.
If you don’t do this, the DWP can take deductions from your work salary, or even pass your case on to a debt collector.
If you don’t engage with the debt collector, it may then take your case to the county courts.
You can dispute an overpayment if you don’t agree with it, but you’ll need evidence as to why you claim to not have overpaid.
You can do this via what’s known as a “mandatory reconsideration”, which you can submit to the DWP online, via phone or by letter.
The specific contact details you’ll need to send any correspondence to will be on the decision letter you receive from the DWP.
Once the DWP has received your mandatory reconsideration, you will receive a “mandatory reconsideration notice” informing you whether it has changed its decision.
If you disagree with that outcome, you can appeal to the Social Security and Child Support Tribunal.
A judge will listen to both sides of the argument before making a decision.
Chancellor Rachel Reeves announced the rise in the Budget[/caption]
