In a positive development for carers across the UK, the government’s Autumn Budget has introduced an increase in the weekly earnings threshold for Carer’s Allowance, set to take effect in April 2024. For many unpaid carers, this adjustment means an opportunity to earn more without jeopardising their eligibility for financial support. Here’s what you need to know about the new threshold, what it means for carers, and why this change is so crucial for millions balancing work and caregiving.
Understanding the New Earnings Threshold
Starting in April 2024, unpaid carers who receive Carer’s Allowance will be able to earn up to £150 per week, a rise from the current limit of £139 per week. This change gives carers a modest yet impactful increase in weekly earnings, allowing them to take on additional work hours or consider higher-paying roles without worrying about exceeding the earnings cap.
Carer’s Allowance is a benefit provided to those who care for someone at least 35 hours a week and whose income falls below a certain threshold. With this adjustment, carers can have greater financial stability while maintaining their caregiving role. This increase is seen as a positive step toward recognising the invaluable work unpaid carers do, as they often juggle employment with extensive caregiving responsibilities.
How Many Carers Will Benefit?
The increase in the earnings threshold is expected to benefit thousands of carers across the UK. According to recent statistics, there are approximately 1.3 million people receiving Carer's Allowance in the UK, with millions more providing care but ineligible due to earnings limits.
The additional flexibility allows carers to take on extra hours or higher wages, making a meaningful difference in their financial situation. This is especially valuable given the rising costs of living and the financial pressure that caregiving can bring. Many unpaid carers have long struggled with the decision to limit work hours to stay below the threshold, often leading to financial strain. Now, with the increased limit, carers have a better chance at managing both work and caregiving.
Why This Increase Matters
For unpaid carers, financial security is a persistent challenge. Many find themselves unable to work full-time due to the demands of caring for loved ones with disabilities, chronic illnesses, or advanced age. For those balancing paid work with caregiving, even a small increase in weekly earnings can make a substantial difference in covering basic needs.
Here are several reasons why this increase in the earnings threshold matters:
Relief from Financial Strain: Carers often face financial hardship due to reduced working hours. The increased threshold provides a bit more financial breathing room, helping with the mounting costs of living.
Encouragement to Continue Working: The adjustment may encourage more carers to stay engaged in the workforce without fear of losing essential benefits, supporting both their personal development and their household income.
Acknowledgement of Carers’ Contributions: Carers contribute an estimated £132 billion in unpaid labour to the UK economy each year. This increase is a small but important step toward recognizing the crucial role they play.
Better Mental Health and Wellbeing: Financial stress can impact mental health, and a small earnings increase can alleviate some of the anxiety that many carers experience in balancing work and caregiving.
Final Thoughts
This update in the Carer’s Allowance earnings threshold is a significant step in acknowledging the unique challenges faced by unpaid carers. While the increase from £139 to £150 per week may seem modest, it provides essential support to carers striving to maintain both financial stability and their caregiving roles. As the changes take effect in April 2024, we hope this sets the stage for even more support and recognition of the selfless work of unpaid carers, whose contributions are often undervalued yet irreplaceable.
The increase in the earnings threshold is a promising development for carers who will now have a greater ability to manage their finances and continue their important caregiving work.
