Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will make it her policy to increase the carers allowance cap to reflect the rise in minimum wage so that part-time workers do not have to reduce their hours to continue qualifying for carers allowance.

Carer’s Allowance has an earnings limit which permits carers to undertake some part-time work if they are able to do so. This recognises the benefits of staying in touch with the workplace, including greater financial independence and social interaction. We know that some carers are keen to maintain contact with the labour market so we want to encourage carers to combine some paid work with their caring duties wherever possible. That is why we regularly increase the earnings limit when it is warranted and affordable.

The earnings limit for those in receipt of Carer’s Allowance who are able to maintain some contact with the employment market is currently £128 a week. Subject to Parliamentary approval, this will increase to £132 a week from April 2022. This will mean that the earnings limit will have increased by around one third since 2010.

The earnings limit for Carer's Allowance is a figure net of certain expenses, including income tax, National Insurance contributions and half of any contributions to an occupational or personal pension, which means that some carers will be able to earn considerably more in gross earnings than the weekly earnings limit.

The earnings limit for Carer’s Allowance is not linked to any specific factor such as the number of hours worked, or the National Living Wage. However, the Government keeps the earnings limit under review and will consider changes where they are warranted and affordable.

Many carers who are receiving Carer’s Allowance and doing some work will also be receiving Universal Credit. For those receiving Universal Credit, the 55% taper rate and any applicable work allowance will help to ensure that people are better off in work.