PIP Changes: Impact on Carer’s Allowance Debate

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Department: Department for Work and Pensions

PIP Changes: Impact on Carer’s Allowance

Wendy Chamberlain Excerpts
Thursday 27th March 2025

(5 days, 22 hours ago)

Commons Chamber
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Stephen Timms Portrait Sir Stephen Timms
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I very much welcome my hon. Friend’s testimony to the value of the support that the system provides and the importance of maintaining that into the future. He is right about passported benefits. The availability of blue badges is not affected by anything in the Green Paper, because the mobility component of personal independence payment is not changed by any of the proposals we have made. Access to carer’s allowance, as we have said, certainly will be, and I would welcome a discussion with him about that.

Wendy Chamberlain Portrait Wendy Chamberlain (North East Fife) (LD)
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I declare an interest as an honorary vice-president of Carers UK, and I sit on the board of the Fife Carers Centre. Last September, I had the Adjournment debate on support for unpaid carers. In that, the Minister for Care, the hon. Member for Aberafan Maesteg (Stephen Kinnock), promised that we would

“forge ahead together with the promise of that future in which unpaid carers are visible, valued and supported.”—[Official Report, 3 September 2024; Vol. 753, c. 288.]

That is not how unpaid carers are feeling today. The Minister referred to how the earnings limit for carer’s allowance has increased, but there is still a cliff edge. Are the Government planning to bring forward plans to link the earnings limit to the 16 hours of employment at the national minimum wage? We know that those are some of the things that caused the overpayments for carer’s allowance in the first place.

Stephen Timms Portrait Sir Stephen Timms
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Yes, the earnings threshold will in future be set at 16 times the hourly rate of the national living wage, and that will continue indefinitely. In addition, the Chancellor announced in the Budget last year that we will look at the idea of an income taper in carer’s allowance to replace the cliff edge, which, as the hon. Member rightly says, is a feature of it at the moment. We are looking at that assessment.