60,000 more to get benefit as DWP ‘want to do a better job’ | Personal Finance | Finance
DWP minister Sir Stephen Timms has spoken out in support of unpaid carers across the UK following a significant update to Carer’s Allowance. He has outlined how the eligibility change will enable thousands more people to qualify for the benefit. He stressed that the Department for Work and Pensions is determined to “do a better job” for them going forward.
Appearing on BBC Radio 5 earlier this week, Sir Stephen said: “We owe a huge amount to these unpaid carers. They’re doing a fantastic job obviously looking after the people who they’re caring but actually they’re doing a great job for all of us and we want to do a better job in supporting them. The key thing we’re providing is our Carer’s Allowance benefit and one major change we’ve made is to increase the earnings threshold.”
Carer’s Allowance is paid at a flat rate of £86.45 a week. However, earning even £1 over the earnings threshold will result in the payment being stopped entirely, as there is no tapering system in place.
In April, the Carer’s Allowance earnings threshold was raised from £196 per week to £204 per week, meaning those claiming the benefit can now earn up to £204 a week without putting their payment at risk.
The minister confirmed that this change alone will result in “an extra 60,000 carers being able to claim”. He added: “There are things we can do and we want to do a better job.”
Earnings for Carer’s Allowance include any income from employment and self-employment, but are calculated after tax, National Insurance and expenses such as pension contributions, equipment required for your work, or business expenses for those who are self-employed.
Things that don’t count towards the earnings threshold include:
- Money from an occupational or private pension
- Someone you live with contributing to living costs, but they can’t be a tenant or boarder
- The first £20 a week and 50% of the rest of any income you make from someone boarding in your home
- Loans or advance payments from employers
Sir Stephen concluded: “Carer’s Allowance isn’t the only financial support that’s being provided.
“Over a million people are getting that, but there’s also people receiving additional support for caring in Universal Credit, that’s for working age people, and Pension Credit for people above state pension age.”
Other support unpaid carers may also be eligible for:
