Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, for what reason her Department has set a limit for the amount of income that someone in receipt of carer's allowance can earn.

The primary purpose of Carer’s Allowance is to provide a measure of financial support to those who’s ability to work is constrained by providing care for someone else for at least thirty-five hours per week. The eligibility conditions for the benefit use income as a proxy for ability to work.

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.

This is why the Government has announced that from April 2025 the weekly Carer’s Allowance earnings limit will be pegged to the level of 16 hours work at the National Living Wage (NLW) and in future it will increase when the NLW increases. This means that unpaid carers will be able to earn up to £196 per week net earnings and still receive Carer’s Allowance compared to £151 now.