Martin Lewis welcomes huge change to benefits for tens of thousands of carers expected in Budget
MARTIN Lewis has welcomed a major change for tens of thousands of carers set to be announced in the Budget.
The consumer champion hailed the news carers will be able to earn more before having a crucial benefit stopped.
The Carers Allowance weekly earnings limit is set to be increased from £151 to a minimum of £181 from next April.
Chancellor Rachel Reeves is expected to confirm the change during her maiden Budget speech tomorrow.
Posting on X, said: "Good news. The Carers Allowance earnings threshold will be increased from £151 to at least £181 in the #Budget tomorrow, starting April 2025.
"So carers can earn more and still receive the allowance."
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Carer's Allowance is a benefit paid to those spending a minimum 35 hours a week caring for someone with an illness or disability.
It is paid at a weekly rate of £81.90 and anyone on the benefit is allowed to have a second income from a job.
But under current rules, anyone who earns more than £151 per week is no longer eligible for the benefit.
You also have to pay back any of the benefit you were paid while earning over the £151 weekly limit.
It has seen some carers forced to pay back huge sums to the Government worth thousands of pounds.
Figures from the Department for Work and Pensions (DWP) reveal that over 134,500 carers repaid a total £251million back in 2023/24.
The announcement from the Government expected tomorrow means an extra 60,000 carers will be eligible for Carer's Allowance.
Helen Walker, chief executive of Carers UK, said: "We are delighted to hear that the Chancellor is expected to increase the earnings limit on Carer's Allowance, something that we've been asking of Government for nearly two decades.
"It's great that the Government seems to be taking swift action to end what we feel is a significant injustice for some of the most deserving people of this country, unpaid carers.
"We're delighted that this is being addressed."
What to do if you breach the earnings limit
If you breach the £151 earnings limit, you should try and proactively report it to the DWP as it is classed as a change in circumstances.
You can report any change in circumstances online via the Government's website.
But you'll need your National Insurance (NI) number to hand, details of the person you're caring for and details of the change.
If you have been overpaid Carer's Allowance, you will have to pay it back in full or instalments via the DWP Debt Management platform.
This is also on the Government's website.
If you don't do this, the DWP can take deductions from your work salary, or even pass your case on to a debt collector.
If you don't engage with the debt collector, it may then take your case to the county courts.
You can dispute an overpayment if you don't agree with it, but you'll need evidence as to why you claim to not have overpaid.
You can do this via what's known as a "mandatory reconsideration", which you can submit to the DWP online, via phone or by letter.
The specific contact details you'll need to send any correspondence to will be on the decision letter you receive from the DWP.
Once the DWP has received your mandatory reconsideration, you will receive a "mandatory reconsideration notice" informing you whether it has changed its decision.
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If you disagree with that outcome, you can appeal to the Social Security and Child Support Tribunal.
A judge will listen to both sides of the argument before making a decision.
What is Carer's Allowance?
CARER'S allowance is a UK benefit designed to help people who have caring responsibilities for more than 35 hours each week.
Those eligible get £81.90 a week paid directly into bank accounts.
To qualify, the person you care for must already get one of these benefits:
- Personal independence payment (PIP) - daily living component
- Disability living allowance - the middle or highest care rate
- Attendance allowance
- Constant attendance allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit
- Constant attendance allowance at the basic (full day) rate with a war disablement pension
- Armed forces independence payment
You don't have to be related to the person or live with them to apply.
But if you share caring responsibilities with someone else, only one of you can make a claim.
The type of care you provide can vary, but includes things such as helping with washing or cooking, taking the person to medical appointments or helping out with household tasks such as shopping or organising bills.
To get the benefit, you must also meet a certain set of criteria:
- You must be 16 or over
- You have to spend at least 35 hours a week caring for someone
- You need to have been in England, Scotland or Wales for at least two of the last three years (this does not apply if you’re a refugee or have humanitarian protection status)
- You must normally live in England, Scotland or Wales or live abroad as a member of the armed forces (you might still be eligible if you’re moving to or already living in an EEA country or Switzerland)
- You cannot be in full-time education
- You must not be studying for 21 hours a week or more
- You cannot be subject to immigration control
- You will also have to meet certain earnings criteria in order to get the benefit.
Your earnings must also be £151 or less a week after tax, National Insurance and expenses.
You can apply for the carer's allowance online by visiting www.gov.uk/carers-allowance/how-to-claim
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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