Zarah ChoudharyCarers UK has reacted positively to reports that Chancellor Rachel Reeves might announce a rise in the earnings limit on Carer’s Allowance, the main carers’ benefit, to the equivalent of 16 hours at the National Living Wage in the Budget this week.
The report, originally in The Sun, suggested that 60,000 more carers could be eligible for Carer’s Allowance, with the rise in earnings allowing unpaid carers to earn £30 more per week than they could previously.
This would be one of the biggest rises in the earnings limit since the benefit was first created in 1976.
Currently, around 175,000 unpaid carers have earnings and Carer’s Allowance.
Research released earlier last week by Carers UK found that four in 10 carers with difficulties with the earnings limit had given up work, and 62% would like to work more but could not because of earnings restrictions and other issues.
Another report by Carers UK found that thousands would be lifted out of poverty with a rise in the earnings limit.
Because the earnings limit has not risen in line with the National Living Wage, Carers UK reported that unpaid carers have been losing income year-on-year.
In 2019, carers were able to work around 15 hours per week at the National Living Wage and still receive the benefit.
This fell to just over 13 hours per week, a loss of 13 days paid work across a year.
Carers UK has campaigned for a change to the earnings limit for years, asking for it to be aligned with at least 16 hours at the National Living Wage.
The charity also highlighted the issue of Carer’s Allowance overpayments, with the Government recently announcing a review headed by former Disability Rights UK CEO Liz Sayce OBE.
Helen Walker, chief executive at 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.
“It’s been heartbreaking and frustrating to hear carers having to choose between paid work and Carer’s Allowance simply because of a rise in the National Living Wage – something that is supposed to benefit low paid workers, not put them out of work.
“We’re delighted that this is being addressed.
“Carers have told us that juggling work and care is critical for them, keeping a toe in the labour market whilst caring significant hours for their older, ill and disabled relatives and friends.
“This is a really important poverty prevention measure and will help many carers, particularly women, stay in the labour market.”
Carers UK has also called for a raft of measures to improve the Carer’s Allowance as the lowest benefit of its kind, including a complete review to make the benefit fit carers’ lives better.
Having called for the earnings limit to rise to at least 16 hours per week for decades, in the light of new research Carers UK recently set a longer term goal of 21 hours for the earnings limit.
