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Carer’s Allowance to rise under new Labour Budget

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Posted on 7th November 2024.

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 the 4th of July, the Labour Party won a majority in parliament, and we saw Sir Keir Starmer become our new Prime Minister. On the 30th of October, the new chancellor of the exchequer, Rachel Reeves, delivered the first Budget in 14 years of 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.

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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, it could mean that carers may be able to earn up to £2,340 more per year, helping out many carers in their day-to-day lives. At Helping Hands, we know how hard our own carers work and the difference they make in the lives of our customers. So, we’re happy to share the news that carers are being given a much-needed leg up. The rise in the new Carer’s Allowance will end the issue of reducing working hours and allow a more stable approach to their 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.

Read up more on the government website to hear more about Carer’s Allowance and how you can 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%!

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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.

Hannah Blackmore
About Hannah Hannah joined Helping Hands in February 2024 as a Content Writer where she enjoys writing blogs, care advice pages and campaign work. She has a degree in Archaeology and Ancient History and previously worked as a professional archaeologist. Hannah hopes to one day become a published author and enjoys solo travel, film and TV, history, fitness and writing.