From April 2025, the amount carers can earn each week will be increased to £196.
The change was announced in the recent budget and is a £45 increase compared to the previous earnings threshold of £151 per week.
It means that full-time unpaid carers who provide care for at least 35 hours a week will be able to earn up to £196 a week from next April, without forfeiting Carer’s Allowance benefit, which is currently £81.90 a week.
Also announced in the budget was an increase in the National Living Wage from £11.44 to £12.21 an hour from April 2025. The new earnings threshold will be pegged to 16 times the National Living Wage, meaning that carers will not see their earnings drop as the living wage increases.
Jacqui Orchard, CEO of The Carers' Centre said:
"The increase in Carer's Allowance will come as a big relief to many carers in Bath and North East Somerset. This change will allow carers the opportunity to earn more each week and will hopefully ease some of the financial pressures many are facing.
Increases in the cost of living have had a huge impact on the lives of many carers. Rising energy prices in particular have placed significant strain on already tight household budgets, leaving many carers in fuel poverty and rising debt. Of the grants we helped carers obtain in the past year, nearly 75% were for basic needs such as food, utility bills or essential household appliances.
Caring for a loved one often comes with a mental, financial and emotional impact. While I welcome this change in the carers 'earning limit', I would like to see government go further in supporting unpaid carers and recognising the vital contribution they make not just to society, but also to the NHS and the wider social care system."