Chancellor Rachel Reeves announced during the Autumn Budget that the Carer’s Allowance weekly earnings limit will increase to the equivalent of 16 hours at the National Living Wage from next April. The rule change will enable people providing unpaid care to earn over £10,000 a year without seeing payments reduced by the Department for Work and Pensions for being over the threshold. Ms Reeves told MPs on Wednesday: “Carer’s Allowance currently provides up to £81.
1 per cent from April, while all other working age benefits - including Carer’s Allowance - will increase by 1.7 per cent. This means Carer’s Allowance will rise from £81.90 per week to £83.30. As the payment is typically issued every four weeks this will see monthly payment go up from £327.60 to £333.20. The policy changes are expected to be adopted by the Scottish Government for people on Carer Support Payment to prevent a two-tier benefits system.
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