Carer Allowance Increase 2024 – Anticipated Changes and Boost in UK Carers’ Payments

By Joe Bidden

Published on:

Keir Starmer

If you spend most of your time looking after someone with a disability or illness, you may be entitled to financial assistance through the Carer Allowance. This benefit, offered by the Department for Work and Pensions (DWP), has undergone specific changes for 2024. Continue reading to know more about the Carer Allowance Increase 2024, its expected changes, and additional details.

Overview

Carers in the UK play a vital role in supporting loved ones with disabilities, illnesses, or other medical conditions. The Carer’s Allowance is a financial benefit designed to acknowledge this contribution and offer some level of income replacement for those who dedicate significant time to care.

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Increase Details

In April 2024, the Carer Allowance saw a much-needed boost in the weekly rate from £76.75 to £81.90, representing a 6.7% rise in line with inflation. This translates to an annual increase of approximately £267.80, offering additional financial support to carers.

Inflation Impact

Inflation has been a significant concern in the UK, impacting the cost of living for everyone, including carers. The 6.7% increase aimed to ensure Carer Allowance recipients have sufficient purchasing power due to rising prices.

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Expected Changes

A key issue is the call to raise the Carer Allowance to match the National Living Wage, reflecting the minimum income needed for a basic standard of living. Currently, the gap between the allowance and the Living Wage leaves many carers struggling financially.

Working Carers

For working carers, the current eligibility criteria require 35 hours of care per week. This poses a significant challenge for those who wish to work part-time or full-time. Proposals have addressed the need to boost the earning threshold or introduce more flexible eligibility options.

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Regional Differences

While a higher allowance is crucial, additional support is also needed to address the varied cost of living across the UK. The current Carer’s Allowance is a flat rate, but living expenses differ significantly between urban and rural areas. Future increases may consider these differences to provide more equitable support.

UK Carers Payment

The UK government has taken positive steps with the Carer Allowance Increase. The weekly carer’s allowance has risen from £76.75 to £81.90, representing a 6.7% increase in line with inflation. However, advocacy groups argue that this increase still falls short of adequately reflecting the financial burden and dedication required of caregivers.

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Future Developments

Looking ahead, aligning the Carer Allowance with the National Living Wage would significantly improve carers’ financial security, ensuring they have a basic standard of living.

How to Claim

To claim the Carer Allowance benefits, the individual carer must meet certain eligibility criteria:

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  • Must be 16 or older
  • Must be a resident of England, Scotland, or Wales
  • Cannot be in full-time education
  • Cannot be subject to immigration control
  • Must meet earnings limits (up to £151 weekly after tax, National Insurance, and certain expenses are deducted)
  • The person being cared for must receive a higher or middle rate of Disability Living Allowance (DLA), Personal Independence Payment (PIP), Armed Forces Independence Payment (AFIP), Constant Attendance Allowance (CAA), or any attendance allowance.

Application Process

If you meet these requirements, you can make your claim online or by post. The procedure involves:

  • Browsing the leading web portal of GOV.UK
  • Clicking on “Apply Now”
  • Filling out all the required information on the new page
  • Providing your National Insurance number, bank or building society details, and employment details
  • Completing the application and submitting the required documents

For offline applications by post, there are two types of claim forms: DS700 and DS700(SP). To request a form, call the Carer’s Allowance Unit at 0800 731 0297, print it out, fill it out, and send it to the DWP.

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The Carer Allowance Increase 2024 is a significant step towards recognizing the invaluable contributions of carers in the UK. While the increase provides much-needed financial relief, ongoing advocacy and policy adjustments are necessary to ensure carers receive adequate support and recognition.

FAQs

What is the new weekly Carer Allowance rate?

The new weekly rate is £81.90.

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How much did the Carer Allowance increase in 2024?

The allowance increased by 6.7%, from £76.75 to £81.90.

Who is eligible for the Carer Allowance?

Carers aged 16 or older, residing in England, Scotland, or Wales, and meeting specific earnings and care criteria.

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How do I apply for the Carer Allowance?

Apply online through the GOV.UK portal or by post using forms DS700 or DS700(SP).

Can I work while receiving the Carer Allowance?

Yes, but your earnings must not exceed £151 weekly after deductions.

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Joe Bidden

A Certified Public Accountant specializing in personal finance and taxation. Joe's engaging writing style and deep understanding of tax codes make her articles a must-read for individuals seeking to maximize their tax savings.

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