Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if he will make an assessment of the potential merits of increasing the carer's allowance earnings threshold in line with inflation.

Earlier this month the weekly Carer’s Allowance earnings limit increased from £132 to £139 net. This increase of 5.5% is in line with growth in Average Weekly Earnings for the year to May-July 2022, as published by the Office for National Statistics (ONS).

DWP uses the ONS Annual Average Weekly Earnings growth measure for benefit uprating purposes where appropriate, as it is regarded as the most robust and up to date estimate of earnings growth across the economy available at the time we review the earnings limit. Increases in the Carer’s Allowance weekly earnings limit are designed to try and ensure that it maintains its value. Therefore, the appropriate proxy for any increase is changes in wages (wage inflation), rather than a wider price inflation measure. Since 2010, the earnings limit will have increased by nearly 40%.