Carer’s Allowance is a vital financial support for individuals who dedicate a significant portion of their time to caring for someone with a disability, medical condition, or an elderly person. In 2024/25, the allowance provides £81.90 per week, which amounts to £327.60 per month, or £4,258 annually. Here’s a detailed guide on the eligibility criteria, how to claim, and the changes you can expect in 2025.
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How Much Is Carer’s Allowance in 2024 and 2025?
In the 2024/25 financial year, Carer’s Allowance remains at £81.90 a week, but from April 2025, it will rise to £83.29 weekly, an increase of 1.7%. This increase aims to keep pace with inflation and provide carers with more financial relief as they continue to support those in need.
Is Carer’s Allowance Means-Tested?
Yes, Carer’s Allowance is means-tested. To qualify, you must not earn more than £151 per week after tax, national insurance, and any pension contributions. If your income exceeds this threshold, you will not be eligible for the allowance.
However, starting from April 2025, the earnings limit will increase by £45, allowing carers to earn up to £196 per week and still qualify for the allowance. This change is expected to benefit an additional 60,000 carers.
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Eligibility for Carer’s Allowance
To be eligible for Carer’s Allowance, you must:
- Care for someone for at least 35 hours a week – This includes providing personal care, assisting with daily tasks, and supporting medical appointments.
- The person you care for must receive a qualifying disability benefit, such as Personal Independence Payment (PIP) or Disability Living Allowance (DLA).
- Be at least 16 years old.
- Not earn more than £151 per week after tax.
- Not be in full-time education (studying 21 hours or more per week).
- Live in the UK or be a member of the armed forces.
The person you care for doesn’t need to live with you, and they could be a relative, friend, or neighbor.
How to Claim Carer’s Allowance
To claim Carer’s Allowance, you need to meet the eligibility criteria and gather necessary documents. Here’s what you’ll need:
- Your National Insurance number.
- Bank or building society details.
- Employment details and the latest payslip if applicable.
- Details of the person you care for, including their date of birth, address, and relevant disability benefits.
You can apply online through the official government website or by calling the claims department for a claim pack.
What Happens If the Person You Care for Passes Away?
If the person you care for passes away, you can continue receiving Carer’s Allowance for up to eight weeks. This temporary support can help you manage during a difficult time, as you handle various practical and emotional challenges.
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Carer’s Allowance Supplement in Scotland
For carers in Scotland, Carer’s Allowance is being replaced by Carer Support Payment. The transition began in February 2024. However, carers in Scotland can still receive the Carer’s Allowance Supplement, a lump sum of £288.60, twice a year, alongside the allowance.
Can You Claim Carer’s Allowance for More Than One Person?
Unfortunately, you can only claim Carer’s Allowance for one person, even if you care for multiple individuals. The hours spent caring for different people cannot be combined to reach the 35-hour weekly threshold.
Carer’s Allowance is an essential support for those who dedicate their time to the care of individuals with disabilities, medical conditions, or the elderly. With increased earnings thresholds and regular payments, this allowance helps relieve some of the financial pressures faced by carers in the UK.
If you meet the eligibility requirements, it’s crucial to apply as soon as possible to ensure you receive the support you deserve. Always keep an eye out for updates to the payment rates and any new eligibility criteria.
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