Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment she has made of the potential merits of increasing the level of the cap on the carer's allowance income threshold to help support greater participation in the workforce.

Carer’s Allowance (CA) does not have a general income test. Rather it has a weekly earnings limit which acts as the test as to whether the carer is in gainful employment or not (this is a basic qualifying condition for CA).

Whilst the Government does not link the earnings limit to any other particular factor, it does keep it under regular review and increases it when it is warranted and affordable. The increase in the CA earnings limit from £123 to £128 a week in April 2020 was in line with average earnings growth.

DWP is undertaking research into carers employment and potential barriers to working. We will look at any findings from the research and other evidence with an open mind when the level of the earnings limit is next considered.