If you live in the UK and care for someone who needs help, you probably rely on Carer’s Allowance to support you financially.
With 2024 coming up, many caregivers are curious about what changes might be coming for Carer’s Allowance in the new year.
This article will look at the expected increase and how it could affect your finances.
What is Carers Allowance?
Carer’s Allowance is a weekly payment from the UK government for people who look after someone with a disability, a long-term illness, or an elderly person who needs help.
The allowance is meant to support those who spend a lot of time caring for others, giving them some financial relief for their hard work.
To qualify for Carer’s Allowance, you need to care for someone for at least 35 hours a week and earn no more than £139 per week.
The person you care for should also be receiving certain benefits, like Disability Living Allowance or Personal Independence Payment.
Carers Allowance in 2023
Starting from April 2023, Carers Allowance is £76.75 per week. This payment comes every four weeks, adding up to about £307 a month. Although this support is helpful, many carers still struggle to meet all their needs, especially with the increasing cost of living.
Expected Increase in 2024
Great news for carers! The UK government has announced that Carers Allowance will be increased in 2024. This boost is part of a larger plan to adjust welfare payments with inflation, making sure carers get the financial support they need.
What’s Changing?
Starting in April 2024, Carers Allowance is set to rise from £76.75 to £81.90 per week. That’s about a 6.7% increase, showing the government’s dedication to helping carers as costs go up. This boost will add an extra £5.15 each week, which works out to around £20.60 more per month. This extra amount can really help with everyday expenses.
| Year | Weekly Allowance | Monthly Total |
|---|---|---|
| 2023 | £76.75 | £307 |
| 2024 | £81.90 | £327.60 |
Why the Increase?
The boost in Carer’s Allowance is part of a larger plan by the UK government to adjust benefits to keep up with inflation.
Since the National Living Wage is set to go up by 9.8% to £11.44 per hour in April 2024, it’s important that Carer’s Allowance is also increased. This helps carers manage the rising cost of living.
Additionally, the government’s promise to protect the value of state pensions and similar benefits through the triple lock policy has played a role in this decision. By raising Carer’s Allowance, the government wants to make sure that those who provide vital care aren’t left struggling financially.
Tax Implications
Carer’s Allowance is subject to tax, so if you have other income sources like a pension, you might need to pay tax on your Carer’s Allowance.
But don’t worry too much—many carers don’t earn enough to cross the personal allowance threshold. This means you might not owe any tax on the Carers Allowance unless your total income goes over this limit.
Extra Help for Carers
Apart from Carer’s Allowance, there are other types of financial support that carers might be eligible for, such as:
- Housing Benefit
- Pension Credit
- Universal Credit
If you receive means-tested benefits, the rise in Carer’s Allowance could mean you qualify for additional help, so it’s a good idea to check your eligibility for these benefits.
The 2024 increase in Carer’s Allowance is a positive step, showing that the UK government values the crucial work carers do. With the allowance now at £81.90 per week, carers will get some extra financial support, making it easier to manage their finances while providing essential care.
To make sure you’re getting all the benefits you’re entitled to, stay updated on these changes. Contact your local benefits office or the Department for Work and Pensions (DWP) for the latest information on how these updates could impact you.
FAQs
How much will Carers Allowance go up in 2024?
Carer’s Allowance will rise from £76.75 to £81.90 per week.
When will the new Carer’s Allowance rate start?
The updated rate will begin in April 2024.
Is Carer’s Allowance taxed?
Yes, Carer’s Allowance is considered taxable income.
What do I need to qualify for Carer’s Allowance?
You need to care for someone for at least 35 hours a week and earn no more than £139 a week.