UK Carer Allowance Increase 2024 – Expected Changes and News

By Joe Bidden

Published on:

Keir Starmer

If you dedicate your time to caring for someone with a disability or illness, the Carer’s Allowance can provide much-needed financial support. Offered by the Department for Work and Pensions (DWP), this allowance has undergone significant changes for 2024. Read on to learn about the Carer Allowance Increase 2024, expected changes, and more.

Carers in the UK play an essential role in supporting loved ones with disabilities, illnesses, or other medical conditions. The Carer’s Allowance is designed to recognize this contribution, offering some income replacement for those who dedicate significant time to care.

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Carer Allowance Increase

In April 2024, the Carer’s Allowance saw a welcome increase from £76.75 to £81.90 per week. This 6.7% rise aligns with inflation and translates to an annual increase of about £267.80. This boost is crucial for carers facing rising living costs.

Expected Changes

Inflation has significantly impacted living costs in the UK, and the increase aims to help carers maintain their purchasing power. Despite this rise, there’s a strong push to further increase the Carer’s Allowance to match the National Living Wage, reflecting the minimum income needed for a basic standard of living. The current gap between the allowance and the Living Wage leaves many carers financially strained.

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Currently, carers must provide 35 hours of care per week to be eligible for the allowance. This poses a challenge for those who wish to work part-time or full-time. Proposals suggest increasing the earnings threshold or introducing more flexible eligibility options.

While a higher allowance is important, additional support is also necessary. Caring can be emotionally and physically demanding. The flat-rate Carer’s Allowance does not account for varying living costs across the UK. The increase will be more reflective of higher living expenses in urban areas compared to rural ones.

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Increase in UK Carers Payment

The UK government has taken steps to address these concerns. The weekly Carer’s Allowance has risen from £76.75 to £81.90, a 6.7% increase in line with inflation.

However, inflation continues to drive up living costs, and the increase might not be sufficient. Advocacy groups argue that the current allowance still does not adequately reflect the financial burden and dedication required of caregivers. Aligning the Carer’s Allowance with the National Living Wage would significantly improve carers’ financial security and better reflect the true cost of living.

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How to Claim

To claim the Carer’s Allowance, you must meet specific eligibility criteria:

  • Age: You must be 16 or older.
  • Residency: You must live in England, Scotland, or Wales.
  • Education: You cannot be in full-time education.
  • Immigration: You cannot be subject to immigration control.
  • Earnings: You can earn up to £151 weekly after tax, National Insurance, and certain expenses are deducted.
  • Care Receiver’s Benefits: The person you care for must receive a higher or middle rate of DLA, PIP, AFIP, CAA, or any attendance allowance.

If you meet these requirements, you can claim the allowance online or by post. Here’s how:

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Online Application

  1. Visit the GOV.UK website.
  2. Click “Apply Now”.
  3. Fill out the required information, including your National Insurance number, bank or building society details, and employment details.
  4. Complete the application and submit the necessary documents.

Postal Application

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

The Carer’s Allowance is a vital financial support for those who dedicate their time and energy to caring for others. Staying informed about changes and increases in the allowance helps ensure you receive the support you deserve.

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FAQs

How much is the Carer’s Allowance in 2024?

£81.90 per week.

Can I claim Carer’s Allowance if I work?

Yes, but you must earn less than £151 weekly after deductions.

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What age must I be to claim Carer’s Allowance?

16 or older.

Do I need to live in the UK to claim Carer’s Allowance?

Yes, you must be a resident of England, Scotland, or Wales.

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Is the Carer’s Allowance taxable?

Yes, it is subject to tax.

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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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