Carers UK welcomes reports that Chancellor is about to announce increase to earnings limit on Carer's Allowance in Budget
Unpaid carers with earnings pushed out of work. Many will be lifted out of poverty with change
Currently around 175,000 unpaid carers have earnings and Carer's Allowance. Research released earlier this week by Carers UK found that 4 out of 10 carers with difficulties with the earnings limit had given up work and 62% said that they would like to work more but couldn't because of earnings restrictions and other issues. Another report by Carers UK, modelling carers' poverty, found that thousands would be lifted out of poverty with a rise in the earnings limit.
Unpaid carers have lost vital income year on year, with lack of change
Because the earnings limit has not risen in line with the National Living Wage, unpaid carers have been losing vital income year on year. In 2019, they were able to work around 15 hours per week at the National Living Wage and still receive the benefit. This has fallen to just over 13 hours per week, a loss of 13 days paid work across a year, something that families simply cannot afford.
Carers UK has been campaigning for a change to the earnings limit for years, asking for it to be aligned with at least 16 hours at the National Living Wage.
Changes could also help some carers avoid overpayments of Carer’s Allowance
The charity has also highlighted the scandal of Carer's Allowance overpayments, with the Government recently announcing a review headed by former Disability Rights UK CEO, Liz Sayce OBE.
Carers have shared experiences with Carers UK where they have had to reduce working hours just to stay within the earnings limit. For some, this meant that work was impossible as employers were unable to lower working hours. For others, they didn't realise that their rise in the National Living Wage took them just a few pounds over the earnings limit, unwittingly ending up with benefits overpayments, with carers having to pay back thousands in arrears.