DWP rule change means thousands more people eligible for £332 a month

A Department for Work and Pensions rule change will see 60,000 more people eligible for a £332 a month benefit from the DWP. Labour Party Chancellor Rachel Reeves confirmed that the earnings threshold for Carers Allowance would increase by £45 a week.

This means thousands more carers will have access to the benefit. The earnings limit placed on people who claim government support for taking care of disabled, sick and elderly loved ones will rise by £45 a week, Ms Reeves announced in the Commons.

The changes will enable full-time unpaid carers who provide care for at least 35 hours a week to earn up to £196 a week from next April without forfeiting carer’s allowance benefit, currently £81.90 a week. The move has been welcomed by campaigners and carers who said it would make “a massive difference".

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s 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." Debbie Wilman, 63, who had to repay £900 in overpayments, spoke out to the Guardian newspaper over the decision.

She said "wow" and added: "It will be a huge help although very few carers can actually earn that amount because they don’t have the time [because of their caring responsibilities]." The carer went on and said: "But it certainly takes the pressure off.”

Helen Walker, chief executive of Carers UK, said: "It’s fantastic to hear that the government will increase the earnings threshold for Carer’s Allowance allowing 60,000 more carers juggling work and care to access this benefit. It’s the largest increase in the earnings limit for Carer’s Allowance since it was introduced in 1976.

"Carers working and claiming Carer’s Allowance can now take on additional hours to earn up to £196 per week from April 2025, or over £10,000 a year. This is a vital poverty prevention measure helping many carers, particularly women, stay in the labour market. It will make a noticeable difference for many, and for the first time in decades, carers will not lose out as the National Living Wage rises. It will help to put much needed cash into the pockets of working carers who do so much to look after their disabled, ill and older relatives.

"Many carers are still struggling with their finances whilst providing so much for society. In addition to today’s announcement, we need to see a full review of Carer’s Allowance as the lowest benefit of its kind at only £81.90 per week for providing a minimum of 35 hours of care. 45 per cent of carers receiving Carer’s Allowance are struggling to make ends meet and urgent steps must be taken to further tackle poverty for carers and their families."