The Department for Work and Pensions (DWP) is set to offer a boost to Carer’s Allowance recipients with an increase in the earnings threshold.
From April 2025, thousands of unpaid carers will benefit from this change, with an additional £196 paid to eligible individuals.
Increase in Carer’s Allowance Earnings Threshold
The government has confirmed a significant increase in the Carer’s Allowance earnings threshold, now rising by £45 per week. This change will allow 60,000 more carers to qualify for the benefit by 2029/30. Andrew Western, DWP minister, emphasized that this is the largest cash boost for the Carer’s Allowance earnings threshold to date.
Mr. Western stated, “The Government values the crucial role carers play in supporting vulnerable individuals, including pensioners and people with disabilities. This increase in the earnings threshold will provide more support to those who care for others unpaid.“
Responsibility of Claimants and Reporting Changes
While this policy change expands support for unpaid carers, claimants must ensure they meet the eligibility criteria. Mr. Western reminded claimants of their duty to inform the DWP of any changes in their circumstances, such as changes in employment or other factors that could affect their benefit eligibility.
To make this process easier, the government is testing new communication methods, such as text message reminders, to ensure carers understand their responsibilities and report any changes promptly.
Review of Overpayments and Earnings Compliance
A recent review has been initiated to address the issue of overpayments in Carer’s Allowance when claimants exceed the earnings threshold.
This review aims to explore how these overpayments occurred and what can be done to support those affected, while reducing the risk of similar problems in the future.
The review’s findings and recommendations are expected by summer 2025. Liz Sayce OBE, the Independent Reviewer, is seeking input from relevant parties.
Overpayment Recovery and Public Fund Protection
In cases of overpayment, the DWP is committed to recovering public funds. Carers who have exceeded the earnings threshold and received overpayments will be required to repay the money.
The department is dedicated to working with individuals to establish affordable repayment plans for those facing financial hardship.
Key Figures and Affected Customers
The DWP has outlined the volume of customers affected by Carer’s Allowance debt, including:
- Former recipients who are no longer entitled to the allowance
- Individuals no longer acting as carers
- Those who fraudulently claimed the allowance without eligibility
Below is a table summarizing key information on Carer’s Allowance overpayments and debts:
| Category | Details |
|---|---|
| Overpayment Due to Earnings Exceeding Threshold | Review underway to address overpayments. |
| Affected Individuals | Includes former claimants, individuals no longer carers, and fraudulent claimants. |
| Repayment Plans | Negotiated based on individual financial situations. |
The upcoming Carer’s Allowance changes will significantly benefit more than 60,000 carers, enhancing their ability to manage their finances while supporting vulnerable individuals.
While the increase in the earnings threshold is a positive development, it’s important for claimants to fulfill their responsibilities by reporting changes in circumstances and adhering to the eligibility criteria.
The DWP’s efforts to address overpayments through a comprehensive review will help ensure a fair and sustainable process for all carers.
FAQs
What is the new Carer’s Allowance earnings threshold?
The earnings threshold will increase by £45 per week, raising it to £196 starting in April 2025.
How will I know if I need to repay overpayments for Carer’s Allowance?
If you exceed the earnings threshold or are no longer eligible, you may be required to repay overpaid benefits. The DWP will provide guidance on repayment options.
When will the review of overpayments be completed?
The review of Carer’s Allowance overpayments is expected to be completed by summer 2025.