Increase in Carer’s Allowance payment and earnings limit to benefit thousands of carers

The Carer’s Allowance benefit has increased today (Monday 7^th April 2025) and the earnings limit has also gone up, which means people can earn more each week without losing financial support.

The earnings limit has risen by £45 a week, from £151 to £196. Working carers can now earn up to £196 per week after certain deductions – equivalent to 16 hours at the National Living Wage – and still be able to claim Carer’s Allowance. 

We at Carers in Hertfordshire welcome this change, the largest increase to the earnings limit since the benefit was introduced in 1976. This change is expected to will help around 60,000 more carers nationally by 2029/30, providing vital income for those juggling work and care.

Carer’s Allowance, the main benefit for carers, is available if you spend at least 35 hours a week looking after someone who is disabled, ill or elderly (other criteria applies). Around 13,000 Hertfordshire residents receive Carer’s Allowance, and the increase to the earnings limit will help many more carers access Carer’s Allowance for the first time.

However, Carer’s Allowance remains the lowest benefit of its kind at £83.30 per week, up from £81.90 a week.

We are also concerned about the changes to Personal Independent Payments (PIP) outlined in the Government’s recent welfare reform Green Paper. These changes could mean fewer people can get PIP and the other support that this gateway benefit can provide. The plans are to tighten the eligibility for the daily living component from November 2026, requiring claimants to score four points in a single activity and eight in total, rather than the current eight points from different activities. Up to 150,000 people lose their Carer’s Allowance by 2029/30 as a result of changes.

Michèle Stokes, our Chief Executive, said: “We welcome this step forward for carers, allowing many to take on more work or earn higher pay while still receiving financial support. This will positively impact carers in our community on low incomes who juggle work and care.

However, we are concerned about the new welfare reforms announced in the Government’s 2025 Spring Statement. While the earnings limit increase is vital, the planned cuts to disability benefits will have a devastating impact on carers and the people they look after, who rely on this support.”

For more information or to apply for Carer’s Allowance visit www.gov.uk/carers-allowance or call 0800 731 0297 (8am – 6pm Monday to Friday, except bank holidays).