Carer's Allowance

(asked on 8th October 2018) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether she plans to increase the amount carers in receipt of carers allowance are allowed to earn.


Answered by
Sarah Newton Portrait
Sarah Newton
This question was answered on 11th October 2018

The Government keeps the Carer’s Allowance (CA) earnings limit under regular review. In April 2018, the CA earnings limit increased from £116 to £120 a week. This 3.4% increase was higher than average earnings growth (Sep 17). In the Economic and fiscal outlook (March 2017) the OBR forecast that average earnings would increase by around 7.5% between 2015 and 2018, whereas we will have increased the CA earnings limit by around 9%.

The earnings limit for CA, is a net figure which is the figure once income tax, National Insurance contributions and half of any contributions to an occupational or personal pension are deducted from earnings. In addition, up to half the net earnings figure calculated can be allowed towards the cost of alternative care for the disabled person, or for a child aged under 16, while the carer is at work. CA rules also allow for further deductions from the net earnings figure to be made, including expenses wholly, exclusively and necessarily incurred in the performance of the duties of any employment; e.g. equipment, special clothing and travel between workplaces, though not between home and work. These rules mean that people can earn significantly more than £120 per week and still be eligible for CA.

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