DWP set to make 'biggest change' to one benefit since 1976

Rachel Reeves has raised the Carer's Allowance weekly limit in the biggest boost to the Department for Work and Pensions ( DWP ) benefit since 1976. Tens of thousands of carers are set to gain £4,258 a year following this rule change.

This is the biggest boost to benefit since 1976. On the Carer’s Allowance, Rachel Reeves said: “Carer’s allowance currently provides up to £81.90 per week to those with additional caring responsibilities. Today, I can confirm that we are increasing the weekly earnings limit to the equivalent of 16 hours at the National Living Wage per week, the largest increase since Carer’s Allowance was introduced in 1976.

“That means a carer can now earn over £10,000 a year while receiving Carer’s Allowance, allowing them to increase their hours where they want to and keep more of their money.” The Chancellor nodded to the Work and Pensions Secretary Liz Kendall’s review of overpayments to Carer’s Allowance claimants, saying: “I am also concerned about the cliff-edge in the current system and the issue of overpayments.”

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esponding to Chancellor Rachel Reeves' Budget statement, Carers Trust CEO, Kirsty McHugh, said: “Today’s Budget provides some hope for unpaid carers. A rise in the Carer’s Allowance earnings limit is a welcome step that will help tens of thousands of people to balance work and caring. However, it remains the lowest benefit of its kind with complex eligibility criteria that just don’t work for carers. We hope the changes announced today and the Government's review of Carer's Allowance overpayments will be the first steps towards a desperately needed overhaul of this totally inadequate benefit.

“The renewal of the Household Support Fund will also be a relief for tens of thousands of carers living in poverty who need financial help. However, it is concerning that we have yet to see meaningful action taken on social care or any details of the Government’s plans. The system is broken, piling pressure on carers while the local carer organisations who support them are struggling to meet demand. The hike to employer National Insurance contributions will see the operating costs of those carer organisations soar while local government remains squeezed, driving some to the brink. The Government has to recognise the value of these services to carers, those they care for and the wider health and care system. These crucial services must be properly funded before it’s too late.”