If you dedicate a significant portion of your time to caring for someone with a disability or illness, you may be eligible for Carer Allowance. This benefit, provided by the Department for Work and Pensions (DWP), is designed to support those who offer substantial caregiving and meet specific eligibility requirements. For 2024, there are some notable updates to the Carer Allowance. This article will delve into the anticipated increase and its potential impact on your finances.
What is Carers Allowance?
Carer’s Allowance is a weekly financial support offered by the UK government to individuals who care for someone with a disability, long-term illness, or elderly person who requires assistance.
The allowance is intended to offer financial aid to those who spend significant time providing care, helping to compensate for their efforts.
To qualify for Carer’s Allowance, you must provide at least 35 hours of care each week and have a weekly income of no more than £139. Additionally, the person you care for must be receiving certain benefits, such as Disability Living Allowance (DLA) or Personal Independence Payment (PIP).
Carers Allowance Amount in 2023
As of April 2023, the Carer’s Allowance was £76.75 per week. Paid every four weeks, this totals approximately £307 per month. Despite this support, many carers find it difficult to meet all their financial needs, especially given the increasing cost of living.
Carer Allowance Increase for 2024
Carers in the UK play a crucial role in supporting individuals with disabilities, illnesses, or other medical conditions. Carer’s Allowance is a financial benefit aimed at acknowledging this contribution and providing some level of income replacement.
In April 2024, Carer Allowance will increase from £76.75 to £81.90 per week, marking a 6.7% rise in response to inflation. This adjustment equates to an annual increase of about £267.80.
Expected Changes for Carer Allowance
Inflation has been a major concern in the UK, affecting the cost of living for all, including carers. The 6.7% increase is meant to help people who get Carer Allowance keep their buying power as prices rise.
There is ongoing advocacy for raising Carer Allowance to align with the National Living Wage, reflecting the minimum income needed for a basic standard of living. The current allowance falls short of this, leaving many carers in financial hardship.
Furthermore, the existing eligibility requirement of 35 hours of care per week is challenging for those who wish to work part-time or full-time. Proposals suggest increasing the earning threshold or introducing more flexible eligibility criteria.
While the higher allowance is essential, additional support is also necessary, as caregiving can be emotionally and physically taxing. The cost of living varies significantly across the UK, and the new Carer Allowance will be adjusted to account for higher living expenses in more expensive areas.
What’s Changing?
Starting in April 2024, the Carers Allowance will rise from £76.75 to £81.90 per week. This 6.7% increase translates to an extra £5.15 per week, or approximately £20.60 more per month, which can significantly aid in managing everyday expenses.
| Year | Weekly Allowance | Monthly Total |
|---|---|---|
| 2023 | £76.75 | £307 |
| 2024 | £81.90 | £327.60 |
Why the Increase?
The increase in Carer’s Allowance is part of the UK government’s broader effort to adjust welfare benefits in line with inflation.
With the National Living Wage set to rise by 9.8% to £11.44 per hour in April 2024, it is important for Carer’s Allowance to also increase to help carers keep pace with the cost of living.
Additionally, the government’s commitment to the triple lock policy, which safeguards the value of state pensions and related benefits, has influenced this decision. By raising Carer’s Allowance, the government aims to ensure that those providing essential care are financially supported.
Tax Implications
Carer’s Allowance is a taxable benefit. If you have other sources of income, such as a pension, you may be liable to pay tax on your Carer’s Allowance.
However, many carers fall within the personal allowance threshold, meaning they may not have to pay tax on this benefit unless their total income exceeds the limit.
How to Claim Carer Allowance
To claim Carer’s Allowance, you must meet certain eligibility criteria:
- You must be 16 years or older.
- You must live in Wales, England, or Scotland.
- You cannot be in full-time education.
- You must not be subject to immigration control.
- You must meet the earnings limit, which is up to £151 weekly after tax, National Insurance, and certain expenses.
- The person you care for must be receiving a higher or middle rate of DLA, PIP, AFIP, CAA, or any attendance allowance.
If you meet these criteria, you can apply online or by post. The process involves:
- Visiting the GOV.UK website.
- Clicking on “Apply Now.”
- Completing the application with your National Insurance number, bank or building society details, and employment information.
- Applying and required documents.
For offline applications, request a claim form by calling the Carer’s Allowance Unit at 0800 731 0297, filling out the DS700 or DS700(SP) form, and sending it to the DWP.
Additional Support for Carers
In addition to Carer’s Allowance, carers may qualify for other financial support, including:
- Housing Benefit
- Pension Credit
- Universal Credit
If you are receiving means-tested benefits, the Carer’s Allowance increase might also result in additional support, so it’s worth reviewing your eligibility for these benefits.
The rise in Carer’s Allowance in 2024 is a positive development that acknowledges the crucial role carers play. With the allowance increasing to £81.90 per week, carers will receive enhanced financial relief, helping them manage daily expenses more effectively.
For the latest information and guidance, consult your local benefits office or the Department for Work and Pensions (DWP).
FAQs
How much will Carers Allowance increase in 2024?
It will rise from £76.75 to £81.90 per week.
When will the new Carers Allowance rate take effect?
As of April 2024, the new rate will be in place.
Is Carers Allowance taxable?
Yes, Carer’s Allowance is subject to tax.
What are the eligibility criteria for Carers Allowance?
You must care for someone for at least 35 hours a week and earn no more than £139 weekly.