Thousands of Brits will receive a cash boost after Rachel Reeves announced a Carer’s Allowance shake-up.
There will be an increase to the weekly earnings limit from £151 a week to £181, Ms Reeves announced.
The move will mean 60,000 more carers will be eligible for the benefit – the largest increase since it was introduced in the 1970s.
It is the equivalent of 16 hours at the National Living Wage per week.
In her Budget speech to the Commons, Ms Reeves said: “I have heard representations from colleagues across this house about the Carer’s Allowance and the impact of the current policy on carers looking to increase the hours they work.”
She continued: “Carer’s Allowance currently provides up to £81.90 per week to those with additional caring responsibilities.
“Today, I can confirm that we are increasing the weekly earnings limit to the equivalent of 16 hours at the National Living Wage per week – the largest increase since Carer’s Allowance was introduced in 1976.
“That means a carer can now earn over £10,000 a year while receiving Carer’s Allowance, allowing them to increase their hours where they want to and keep more of their money.”
Work and Pensions Secretary Liz Kendall is also launching an independent review into Carer’s Allowance overpayments.
Ms Reeves said she was “concerned about the cliff-edge in the current system and the issue of overpayments”.
“My right honourable friend, the Work and Pensions Secretary, has announced an independent review to look at the issue of overpayments, and we will work across the house to develop the right solutions,” she said.
The review will focus on how and why overpayments were made, operational changes to minimise future overpayment risk and how the DWP can best support those with overpayments.
Carer’s Allowance is currently claimed by around 1.4million people in the UK.
By Emma Soteriou
