Carer’s Allowance to rise under new Labour Budget

Love them or hate them, the new Labour government is here to stay (at least for the next four years) and with it – a new Budget. Sadly, if you’re a farmer, pensioner or first-time home buyer, the chances are you’re not too impressed with the changes. However, here at Helping Hands, we’re all about looking at the positive side. If you happen to be a carer or know someone who is, the new Labour Budget may give you a reason to smile.

On 4 July, the Labour Party won a majority in Parliament, and Sir Keir Starmer became our new Prime Minister. On 30 October, the new Chancellor of the Exchequer, Rachel Reeves, delivered the first Budget in 14 years under a new Labour government. Carers across the UK will have cause for celebration, as the government has decided to increase the earnings limit threshold, meaning thousands of carers will be better off.

The main carer’s benefit, the ‘Carer’s Allowance’, is set to rise in the earnings limit to an equivalent of 16 hours of pay, according to the National Living Wage. The National Living Wage is also going up from £11.44 to £12.21 an hour from April 2025, resulting in one of the biggest increases in the earnings limit since the benefit was first created in 1976. Working carers will now be able to earn £196 per week and claim Carer’s Allowance, which is an increase of around £45 per week in comparison to the previous earnings threshold of £151. This all means that 60,000 more carers will be able to access Carer’s Allowance as a result.

On average, this could mean carers are able to earn up to £2,340 more each year, providing valuable financial support in their day-to-day lives. At Helping Hands, we see first-hand the incredible work our carers do and the difference they make to the lives of the people they support. That’s why we’re pleased to see this much-needed increase to Carer’s Allowance. By raising the earnings threshold, carers will no longer be forced to reduce their working hours to remain eligible, giving them greater financial stability and allowing them to build more sustainable careers in care.

According to the Gov.uk website at the time of writing this article, you now are entitled to £81.90 a week if you care for someone at least 35 hours a week and they get certain benefits. You also:

• Do not have to be related to, or live with, the person you care for
• Do not get paid extra if you care for more than one person
• If someone else also cares for the same person as you, only one of you can claim Carer’s Allowance.

Visit the government website to find out more about Carer’s Allowance, including who is eligible and how to claim it.

Remember that due to the new Budget announcement, this figure will rise to £83.29 per week from 6th April 2025, an increase of 1.7%!

So, if you’re currently a carer, there’s reason to smile and continue doing the hard work that makes a difference. Our carers here at Helping Hands are educated, capable and dedicated and we’re proud to get to know them and their careers. This way, our customers will benefit the most from our expert live-in care, visiting care and respite care from our superb carers.