If you’re a UK resident providing care to someone in need, you’re likely familiar with Carer’s Allowance, a vital welfare payment designed to support caregivers. This article will provide you with essential details on the expected increase in Carer’s Allowance for 2024, along with insights into eligibility, payment amounts, and what this means for carers across the UK.
Carer’s Allowance
Carer’s Allowance is a weekly payment made to individuals who provide at least 35 hours of care per week to someone with a disability, chronic illness, or other medical conditions requiring significant support. Importantly, you don’t need to be a relative of the person you’re caring for to qualify.
As of April 2023, the Carer’s Allowance stands at £76.75 per week. This payment is typically provided every four weeks, though some carers may opt to receive it weekly. The allowance is designed to help with the costs associated with caregiving, allowing carers to maintain a reasonable standard of living despite the demanding nature of their role.
Carer’s Allowance Increase
In response to rising living costs and inflation, the UK government is set to increase Carer’s Allowance in 2024. Starting in April 2024, the weekly Carer’s Allowance will increase from £76.75 to £81.90. This represents an increase of £5.15 per week, which translates to approximately £2.19 per hour based on a 35-hour workweek. While this increase may seem modest, it reflects the government’s effort to provide additional financial support to carers as living expenses continue to rise.
Why the Increase Matters
The increase in Carer’s Allowance is particularly significant when viewed in the context of the overall economic landscape. With the National Living Wage set to rise by 9.8% to £11.44 per hour in April 2024, the increase in Carer’s Allowance helps ensure that carers receive a fairer level of compensation for their contributions, even if they earn below the income threshold.
This adjustment is part of a broader effort to align social welfare payments with inflation and the rising cost of living. As the government continues to uphold the triple lock policy—which guarantees that benefits increase in line with the highest of average earnings, inflation, or 2.5%—carers can expect their payments to remain responsive to economic changes.
Income Limits
It’s important to note that Carer’s Allowance is taxable. If you have other sources of income, such as a pension or part-time employment, you may be required to pay tax on your Carer’s Allowance. Additionally, the allowance is means-tested, meaning that if you earn more than £139 per week (after certain deductions), you may not be eligible to receive the full amount. However, even if you are ineligible for the full payment, you may still retain an “underlying entitlement” to the allowance, which can increase other means-tested benefits like Housing Benefit or Pension Credit.
What to Expect
According to the 2024 Budget announced on October 10, 2023, significant changes and increases in social welfare payments are planned for the coming year. The Carer’s Allowance is set to receive substantial attention as part of this budget, with a focus on providing carers with the financial support they need to continue their vital work.
- Carer’s Allowance Increase: Starting April 2024, the allowance will rise to £81.90 per week, marking a £5.15 increase from the previous year.
- Additional Financial Support: Depending on their circumstances, some carers may see further financial support through other social welfare payments or one-time benefits outlined in the budget.
For individuals providing care for more than one person, it’s important to remember that the allowance is capped per carer, not per care recipient. However, if you care for two or more people and meet specific criteria, your allowance rate could be increased by up to 50%.
Final Thoughts
Carers play an essential role in the UK, providing care and support to those who need it most. The planned increase in Carer’s Allowance for 2024 is a positive step toward recognizing and compensating the invaluable work that carers do every day.
If you’re a carer, it’s crucial to stay informed about these changes and ensure that you are receiving the correct amount. For the latest information on Carer’s Allowance and other social welfare payments, visit the Department of Social Services website.
FAQs
How much will Carer’s Allowance increase in 2024?
Carer’s Allowance will increase from £76.75 to £81.90 per week in April 2024.
When does the Carer’s Allowance increase take effect?
The increase takes effect in April 2024.
Is Carer’s Allowance taxable?
Yes, Carer’s Allowance is taxable if you have other sources of income.
Can I claim Carer’s Allowance for multiple people?
You can only receive one Carer’s Allowance, but the rate may increase if you care for more than one person.
Where can I get more information on Carer’s Allowance?
Visit the Department of Social Services website for detailed information and updates.