Contact welcomes Carer’s Allowance earnings limit hike

2 mins read

Wednesday 30 October 2024

Tags: carer, carer's allowance, budget, unpaid carers, earnings limit

Chancellor Rachel Reeves MP has today announced an increase in the Carer’s Allowance earnings limit in her first budget.

The earnings limit – the maximum amount a carer can earn a week while getting Carer’s Allowance – will raise to £196 per week (16 hours at the National Minimum Wage) from next April. The earnings limit will also increase in line with any future increases in the National Minimum Wage.

Una Summerson, Head of Policy at Contact, says:

“Many carers will be encouraged to hear that the care they give to their disabled and seriously ill relatives has been recognised at long last in the Chancellors budget today. Increasing the Carer’s Allowance earnings cap – by £45 – is unprecedented and will be welcome news to the families we support. It is something that Contact and parent carers have been campaigning on for years. Today’s announcement means that carers will now be able to earn over £10k a year without losing an essential benefit.

“We also look forward to hearing more from the independent review into Carer’s Allowance overpayments and about the government’s plans to look at the current Carers Allowance earnings cliff-edge, which means if carers go over the earning cap by just one penny they lose all of their Carer’s Allowance.

“Contact also welcomes the announcement in today’s budget for SEND provision in schools across England and a promised £1 billion uplift in spending.”