Question to the Department for Work and Pensions:

To ask His Majesty's Government what plans they have to revise (1) the limits on earnings and the number of hours that can be worked, and (2) the rate at which earnings above those limits can be reclaimed, for those in receipt of Carer’s Allowance.

The Government recognises the challenges unpaid carers are facing and is determined to provide them with the help and support they need and deserve. It is looking closely at how the benefit system currently does this.

Universal Credit provides support to carers on low incomes, whether they are in paid employment or not. Carer’s Allowance, by contrast, is available to all unpaid carers, provided they are not in ‘gainful employment’. This is currently defined as having earnings not exceeding £151 a week net of allowable expenses. This level is reviewed annually alongside the Secretary of State’s statutory review of State pension and benefit rates. Many Carer’s Allowance recipients are in households also receiving Universal Credit, where the structure of tapers and work allowances (where applicable) effectively takes precedence over ‘gainful employment’ test in Carer’s Allowance.

With respect to overpayments of Carer’s Allowance due to the interaction with earnings, the Government is moving quickly to understand exactly what has gone wrong so that it can set out its plan to put things right.