Boost for carers in Rachel Reeves’ budget

Carers have been given a much-needed boost in Chancellor Rachel Reeves’ first budget.  

They will now be able to earn over £10,000 a year while still receiving carer’s allowance – the equivalent of being paid 16 hours at the national living wage per week.  

But the exact date for these changes is still under wraps. 

What does this mean for carers? 

Carers will be able earn more money without losing their allowance. And an extra 60,000 who previously earnt too much will now qualify for the benefit.

What is carer’s allowance? 

The carer’s allowance is a vital lifeline for many.  

Currently, it stands at £81.90 a week, making it one of the lowest paid benefits available.  

To qualify, you need to care for someone with a disability or illness (who claims certain benefits) for at least 35 hours a week. This works out at just £2.34 an hour.  

There’s also strict earning limits. At the moment, carers can’t earn more than £151 a week after tax and expenses to keep getting the allowance, which has forced many to cut back on work hours. 

With the new threshold, they’ll be able to earn £181 a week and still benefit from carer’s allowance.

While we think the increase is a positive step, we would have liked the government to go further.

Our director of external affairs, Sebrina McCullough, says: "The increase to the Carers Allowance earnings threshold is a positive step towards supporting carers.

"11% of the people we provide debt support to claim carer’s allowance, with 75% deemed vulnerable. 44% of these people are also affected by benefit overpayment debts, so we would have liked the government to go further and replace the ‘cliff-edge’ limit with a tapered approach to earnings limits." 

Help and support for carers 

If you look after someone, you might be eligible to claim certain benefits.  

Check out our guide on financial support for carers or use our benefits calculator to find out what you can claim. You may also qualify for grants that you don’t have to repay.