The DWP has announced a major benefit change coming into force from Monday, April 7

A significant change to a key DWP benefit will take effect on Monday, April 7. This could potentially make an additional £333 per month available to thousands of Brits who care for someone else.

The Carer’s Allowance earnings threshold is being revised, which will result in an extra 60,000 people becoming eligible to claim the benefit. Furthermore, claimants will be able to earn more before their entitlement is affected, as stated by the DWP.

Carer’s Allowance is a weekly payment of £83, provided to those who care for someone for 35 hours or more each week. Eligibility does not require the carer to live with or be related to the person they are caring for.

At present, the earnings limit for Carer’s Allowance – the amount a carer can earn while still being able to claim the benefit – is set at £151 per week. If a carer’s earnings exceed £151 a week, they are ineligible to claim the benefit payment for that week.

However, this limit is set to rise to £196 per week from Monday, enabling carers to earn up to an additional £45 a week and still qualify for the payments, reports the Manchester Evening News.

According to the DWP, this increase in the allowed earnings while claiming the benefit will enable an additional 60,000 people to receive the weekly payments.

Starting next week, the earnings threshold will be raised to the equivalent of 16 hours a week at the National Living Wage.

The government has highlighted that this adjustment represents the most substantial increase to the benefit since its inception in 1976. This means that a carer can now earn over £10,000 a year while still receiving the weekly payments.

An independent probe into overpayments of Carers Allowance was kicked off by the government in October 2024, spearheaded by Liz Sayce OBE.

This follows a backlash against the DWP’s ‘cliff edge’ policy on the benefit, which sees carers stripped of their entitlement entirely if they exceed the weekly limit.

The DWP has come under fire for demanding repayments running into thousands from carers who accidentally breached the earnings threshold, sometimes by a measly £1. The review’s findings are slated to be unveiled in early summer 2025.

Carer’s Allowance rates have also seen a bump this month in line with inflation, along with other DWP benefits.

Welfare benefit rates, including PIP and Universal Credit, are set to rise this month by nearly 2 per cent. DWP and HMRC benefit payments get an annual boost in line with the previous September’s inflation rate.

In September 2024, the inflation rate was pegged at 1.7 per cent, as per the consumer price index.

On the other hand, the State Pension gets a lift by whichever is highest out of inflation, average wage growth between May and July, or 2.5 per cent – a guarantee known as the triple lock promise. This year, state pension rates will see a 4.1 per cent hike in line with average earnings growth.

Thanks to the DWP benefit increase, Carer’s Allowance will now be £83.30 a week, up from £81.90 a week, starting this month.

Carers UK has expressed mixed feelings about recent government decisions affecting carers. While they appreciate the increase in the earnings threshold for Carer’s Allowance, they are worried about the impact of proposed changes to Personal Independence Payments (PIP) unveiled last month.

The charity warns that alterations to PIP, which is crucial for qualifying for Carer’s Allowance, could result in 150,000 carers being deprived of financial aid.

Helen Walker, chief executive of Carers UK, commented on the situation: “Unfortunately, we are looking at a game of two halves. Last year in the 2024 Autumn Budget we welcomed news that the limit on Carer’s Allowance would rise, which is a much-needed step forward, helping carers in employment on a low income to increase their earning potential.

“We know that the earnings limit is a barrier to taking on more work for carers. Some have cut back hours, switched jobs or even given up work completely. This will make a notable difference to many, but these changes now take place against the concerning backdrop of new welfare reforms announced in the 2025 Spring Statement.

“Carers’ benefits are long overdue for reform. We welcome the rise in the earnings limit whilst acknowledging that many carers remain under huge financial pressure, including those who are not able to combine caring with paid work due to the intensity of their caring role. A full review of Carer’s Allowance, including the eligibility criteria, is needed urgently to ensure it provides adequate, long-lasting support.”