DWP makes change to one benefit meaning people will be £4,258 better off

A Department for Work and Pensions (DWP) rule shake-up means benefit claimants could be set for a £4,258 boost. The Carers Allowance weekly earnings limit is set to be increased from £151 to a minimum of £181 from next April.

Chancellor Rachel Reeves is expected to confirm the change during her maiden Budget speech tomorrow. Carer's Allowance is a benefit paid to those spending a minimum 35 hours a week caring for someone with an illness or disability.

It is paid at a weekly rate of £81.90 and anyone on the benefit is allowed to have a second income from a job. But under current rules, anyone who earns more than £151 per week is no longer eligible for the benefit. You also have to pay back any of the benefit you were paid while earning over the £151 weekly limit.

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Suzanne Bourne, head of Carer Support at Mobilise, said: "It is especially important to be aware of exactly how much you earn - this earnings ‘threshold’ is where the recent issues have come from. Currently, it’s up to the individual to check they are not exceeding this limit to avoid having to repay any overpayments. Although there are plans to automatically alert people at risk of falling into this trap, this is not yet the case."

A report from Carers UK found reasons for carers going over the earnings limit included fluctuating earnings, receiving a pay rise, or errors on the part of an employer, such as paying them late. One carer spoke about the pressure from the DWP to pay back the amount they owed: "It pushed me over the edge as the letters were very threatening and on top of my caring responsibilities it made me ill.

"I was scared and felt under constant threat from debt collectors and being taken to court." The limit is currently set at £151 a week, but the changes could mean more carers will be eligible for the DWP payments, which pays or £4,258.80 a year.

Helen Walker, chief executive of Carers UK, said: "We are delighted to hear that the Chancellor is expected to increase the earnings limit on Carer's Allowance, something that we've been asking of Government for nearly two decades.

"It's great that the Government seems to be taking swift action to end what we feel is a significant injustice for some of the most deserving people of this country, unpaid carers.

"We're delighted that this is being addressed."