Carer Allowance Increase 2024 – Anticipated Changes and UK Carers Payment Rise

By Ehsteem Arif

Published on:

Kirsty McHugh

Do you spend most of your time caring for someone with a disability or illness? You may be eligible for Carer Allowance benefits. The Department for Work and Pensions (DWP) has made some important changes for 2024. Read on to know more about the Carer Allowance Increase 2024, expected changes, and how they impact you.

Increase

Carers in the UK play a crucial role in supporting loved ones with disabilities or medical conditions. The Carer’s Allowance is a financial benefit designed to recognize this contribution and provide some income replacement for those who spend significant time caring.

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In April 2024, the Carer Allowance received a much-needed boost. The weekly rate increased from £76.75 to £81.90, a 6.7% rise in line with inflation. This translates to an annual increase of approximately £267.80.

Changes

Inflation is a significant concern in the UK, affecting everyone, including carers. The 6.7% increase aimed to ensure that Carer Allowance recipients maintain their purchasing power amidst rising prices.

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One major issue is the call to raise the Carer Allowance to match the National Living Wage, reflecting the minimum income needed for a basic standard of living. Currently, the gap between the allowance and the Living Wage leaves many carers struggling financially.

For working carers, the current eligibility requirement is 35 hours of care per week. This poses a challenge for those who wish to work part-time or full-time. Proposed changes include increasing the earning threshold or introducing more flexible eligibility options.

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While a higher allowance is essential, additional support is also needed. Caring can be emotionally and physically demanding. The current Carer’s Allowance is a flat rate, but the cost of living varies across the UK. The Carer Allowance Increase will take into account higher living expenses compared to rural areas.

Payment Increase

The UK government has taken positive steps regarding the Carer Allowance Increase. The weekly allowance has risen from £76.75 to £81.90, representing a 6.7% increase in line with inflation.

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Inflation has significantly affected the cost of living, and caregivers are no exception. The 2024 increase aims to maintain purchasing power, but is it enough? Advocacy groups argue that the current allowance still falls short of adequately reflecting the financial burden and dedication required of caregivers.

Looking ahead, aligning the Carer Allowance Increase with the National Living Wage would significantly improve carers’ financial security. This change would reflect the cost of living required for a basic standard of life.

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How to Claim

Before claiming Carer Allowance benefits, you must meet certain eligibility criteria. This includes:

  • Being 16 or older
  • Residing in England, Scotland, or Wales
  • Not being in full-time education
  • Not being subject to immigration control
  • Meeting earnings limits (you can earn up to £151 weekly after tax, National Insurance, and certain expenses are deducted)
  • The person you care for must receive a higher or middle rate of DLA, PIP, AFIP, CAA, or any attendance allowance

If you meet these requirements, you can claim online or by post. The procedure involves:

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  1. Browsing the GOV.UK portal
  2. Clicking “Apply Now”
  3. Filling out the information on the new page
  4. Providing your National Insurance number, bank or building society details, and employment details
  5. Completing the application and securing the required documents

For offline applications, there are two types of claim forms: DS700 and DS700(SP). To request a form, call the Carer’s Allowance Unit at 0800 731 0297, print it out, fill it in, and send it to the DWP.

Carers play a pivotal role in supporting those in need, and these changes to the Carer Allowance aim to provide better financial security and recognition for their invaluable work.

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FAQs

What is the new Carer Allowance rate for 2024?

The new rate is £81.90 per week.

How much did the Carer Allowance increase in 2024?

It increased by 6.7%, or £5.15 weekly.

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Can I work and still receive Carer Allowance?

Yes, but your earnings must not exceed £151 weekly after deductions.

What are the eligibility criteria for Carer Allowance?

You must be 16 or older, not in full-time education, and meet residency and earnings criteria.

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How do I apply for Carer Allowance?

You can apply online via the GOV.UK portal or by post using forms DS700 or DS700(SP).

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Disclaimer- We are committed to fair and transparent journalism. Our Journalists verify all details before publishing any news. For any issues with our content, please contact us via email. 

Ehsteem Arif

A tax law expert with a knack for breaking down complex regulations into digestible insights. Ehsteem's articles on the tax news blog offer invaluable guidance to readers navigating changes in tax legislation.

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