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25 February 2025

DWP Boosts Carer's Allowance Earnings Threshold By £45

The Department for Work and Pensions emphasizes compliance as it prepares for historic changes to support unpaid carers.

The Department for Work and Pensions (DWP) has acknowledged the integral role of unpaid carers, underscoring its commitment to supporting those who provide care for vulnerable populations. Minister for Transformation Andrew Western recently addressed the responsibilities of Carer's Allowance recipients, emphasizing the necessity for them to remain informed about their eligibility and any changes to their circumstances.

According to Western, the Government recognizes the invaluable contribution made by carers, particularly to those most in need, including pensioners and disabled individuals. He stated, "This Government recognises and values the vitally important contribution made by carers in supporting some of the most vulnerable in society, including pensioners and disabled people. We are determined to provide unpaid carers with the support they need and deserve." This commitment appears to be on the rise as the department prepares for significant changes to the Carer's Allowance.

One of the most notable changes is the increase to the earnings limit for Carer's Allowance, set to take effect from April 2025. Minister Western announced this increase would be by £45 per week, raising the cap to £196. This change would greatly benefit over 60,000 carers by the 2029/30 fiscal year, marking it as the largest ever cash increase for Carer's Allowance earnings thresholds to date.

Western cautioned, though, about the obligations for claimants: "Claimants have a responsibility to be sure they are entitled to benefits they claim and to inform the DWP of any changes in their circumstances." He elaborated on the importance of transparency, particularly with income fluctuations, as the DWP continues to highlight the repercussions of failing to report such changes.

There are currently 143,922 unpaid carers with outstanding Carer's Allowance debts, with approximately 99,349 of these cases attributable to overpayments tied to earnings surpassing the weekly income limit—amounting to about 60 percent of all Carer's Allowance debt. This statistic is particularly alarming as it reflects the challenges many face trying to balance their caregiving responsibilities with financial realities.

To address these overpayment issues, the DWP has initiated an independent review. This review aims to investigate the circumstances surrounding these overpayments and to develop strategies to prevent future occurrences, including improved communication with carers about their responsibilities. Western noted, "We expect review findings and recommendations to be submitted to the Department in early summer 2025." The review will be led by Liz Sayce OBE, who is eager to gain insights from all stakeholders involved.

The DWP is actively working on improving support mechanisms for carers, including changes to their communication strategies. This is highlighted by Western’s comments about trialing new methods, such as text message reminders, to help carers understand their responsibilities and keep them informed of any necessary updates they should convey to the DWP.

Western's comments also reflect the DWP's duty to protect public funds. He explained, "Where overpayments do occur, the Department has a duty to the taxpayer to protect public funds and to ask for money to be paid back." Nevertheless, he assured carers facing repayment challenges of the department's commitment to work with them—stressing the importance of creating sustainable and feasible repayment plans.

This focus on both support and compliance reflects broader governmental recognition of the strain unpaid carers endure. With the rise of new policies aimed at empowering these individuals, the DWP is striving to alleviate some of the burdens through increased financial thresholds and dedicated oversight of benefit management. Yet, the emphasis remains clear: recipients must stay vigilant about their eligibility and communicate proactively with the DWP.

These developments come at a time when society is becoming more aware of the contributions of unpaid carers and the challenges they face. With over 60,000 carers expected to benefit from the upcoming changes, it is hoped this shift will not only provide much-needed financial relief but also reinforce the value of caregiving roles across the UK.