Carers Earning Over £10,608 Denied DWP Payments After Rule Change
Individuals who earn more than £10,608 per year are being denied a Department for Work and Pensions (DWP) benefit following a recent rule adjustment. Carer's Allowance, which supports those providing at least 35 hours of weekly care to family or friends with disabilities, long-term health conditions, or age-related needs, remains the lowest benefit of its kind, equating to just £2.47 per hour.
Earnings Threshold Increase and Eligibility
The earnings limit for Carer's Allowance has been raised from £196 to £204 per week after certain deductions, totaling £10,608 over a 52-week year. This change, highlighted by Carers UK, could allow more carers who balance paid employment with caregiving responsibilities to qualify for the benefit without reducing their work hours.
Helen Walker, Chief Executive of Carers UK, stated: "The increase to the Carer's Allowance earnings threshold to over £200 a week is welcome news for the many carers who are juggling paid work with caring responsibilities. Because the threshold has risen, some carers who previously earned too much to qualify may find they are now eligible for support."
Reporting Changes and Consequences
If carers breach the earnings limit, they must proactively report this change in circumstances to the DWP, which can be done online through the government's website. Failure to report promptly, providing incorrect information, or receiving overpayments by mistake may require repayment of the funds.
Payments not considered as earnings include:
- Money from occupational or private pensions
- Contributions towards living or accommodation costs from a cohabitant (excluding tenants or boarders)
- The first £20 per week and 50% of additional income from someone boarding in the home
- Loans or advance payments from employers
Calls for Benefit Review
Despite the threshold increase, Carer's Allowance is criticized for its inadequacy. Nearly two-thirds of recipients live in poverty, and most believe it fails to meet their financial needs. Carers UK is advocating for a comprehensive review of the benefit, including a reassessment of eligibility rules, to ensure long-term, meaningful support for carers.
Walker added: "We are encouraging all carers to check their entitlement so they don't miss out on money they could now receive. Even with the recent increase, Carer's Allowance remains the lowest benefit of its kind."
