20 September 2007 – Carers to earn more without losing out

Carers will be able to earn more money without losing their benefits, Work and Pensions Secretary Peter Hain has announced.

From 1 October 2007, the maximum amount of money that carers in Great Britain will be allowed to earn without losing their entitlement to Carer’s Allowance (CA) will rise from £87 to £95 a week, after expenses such as income tax and national insurance contributions have been taken into account.

Peter Hain said:

“Carers play a vital role in our communities, providing invaluable help and support for their loved ones. It is right that where we can offer further support we do so.

“The higher weekly limit of £95 means that more carers will be able to keep their Carer’s Allowance if they earn more money. And it means that more carers will now be able to receive Carer’s Allowance for the first time.

“Together with next April’s normal increase in Carer’s Allowance, carers should be able to receive more than £7,500 a year combined.” 

The increase in the earnings limit is an interim measure ahead of the government’s forthcoming review of the National Carers Strategy. The strategy will look at how CA could be reformed to meet today’s needs more effectively.

Carers who employ someone to look after a disabled person or a child aged under 16 while they are at work will continue to be entitled to the allowance while earning significantly more than the normal limit.

Notes to Editors

1. Carer’s Allowance is designed to provide a measure of help for someone who forgoes the opportunity of full-time work to provide at least 35 hours of care a week for a severely disabled person who receives Attendance Allowance, an equivalent rate of the Disability Living Allowance care component, or a specified minimum level of Constant Attendance Allowance with an Industrial Injuries Disablement Benefit or a War Pension.
2. Income-related benefits like Income Support, Housing Benefit and Council Tax Benefit, along with Pension Credit for people aged 60 or over, provide additional help for lower-income households and are payable at a higher rate where someone is entitled to Carer’s Allowance.
3. In 2001, the government increased the weekly amount which Carer’s Allowance recipients are allowed to earn from £50 to the level of the lower earnings limit for National Insurance Contributions, then £72 and since increased annually to its current level of £87.
4. The new earnings limit will be kept under review pending any reform of Carer’s Allowance which was introduced (as Invalid Care Allowance) in 1976 when social conditions were very different.
5. The change in the earnings limit was laid before parliament on 10 September as part of the Social Security (Miscellaneous Amendments) (No. 5) Regulations 2007 (http://www.opsi.gov.uk/si/si2007/uksi_20072618_en.pdf)
6. The current rate of Carer's Allowance is £48.65 a week.

 

Media enquiries: 0203 267 5144
Out of Hours: 07659 108 883
Website: www.dwp.gov.uk