DWP warning over major change to Carer’s Allowance that kicks in within days as payments are at risk of stopping

A MAJOR change to Carer's Allowance will kick in within days and you could be at risk of payments stopping.

The benefit is paid to anyone who has caring responsibilities for someone with a disability and is currently worth £81.90 a week.

However, if you earn over a certain amount a week you are no longer eligible and have to report it to the DWP.

This is through what's known as the earnings limit. This is currently £151 a week, but will rise to £196 in days – April 7.

The £45 uplift is the largest increase in the threshold since the benefit was introduced in 1976 and will see tens of thousands more carers receiving the benefit.

But, it still means anyone earning over £196 will be ineligible for Carer's Allowance.

If you do breach the earnings limit, it's crucial you report it to the DWP so it knows you no longer qualify.

If you don't, you may end up being overpaid and have to repay your debt to the Government department.

If you don't engage with the repayment process, you can even be taken to county court.

Recent data published by the Government reveals more than 140,000 people on Carer's Allowance are in debt to the DWP after being overpaid.

In recent years, some have had to pay back as much as £20,000 after unknowingly breaching the earnings limit.

The rise in the earnings limit comes after campaigning from charities across the benefits sector including Carer's UK.

Following the announcement in the Budget the threshold would rise to £196, Helen Walker, chief executive at Carer's UK, said: “It’s fantastic to hear that the Government will increase the earnings threshold for Carer’s Allowance allowing 60,000 more carers juggling work and care to access this benefit.

“This is a vital poverty prevention measure helping many carers, particularly women, stay in the labour market.

“It will make a noticeable difference for many.”

What is Carer's Allowance?

Carer's Allowance is paid to those caring for someone else (who is on benefits) for at least 35 hours a week.

It is currently worth £81.90 a week but this will rise to £83.30 a week from next month.

You don't have to be related to the person you care for, or live with them, to qualify.

If you are on Carer's Allowance you also receive National Insurance credits which contribute to your NI record.

What classes as someone needing “care” is based on them qualifying for a number of benefits. These are:

• Personal Independence Payment – daily living component
• Disability Living Allowance – the middle or highest care rate
• Scottish Adult Disability Living Allowance – the middle or highest care rate
• Attendance Allowance
• Pension Age Disability Payment
• Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit
• Constant Attendance Allowance at the basic (full day) rate with a War Disablement Pension
• Armed Forces Independence Payment
• Child Disability Payment – the middle or highest care rate
• Adult Disability Payment – daily living component at the standard or enhanced rate

The person you are caring for must also need help with certain tasks including: washing and cooking, being taken to the doctors and household tasks like managing bills or going food shopping.

Carer's Allowance is issued to those living in England, Wales or Scotland aged 16 or over.

It's worth noting, receiving Carer's Allowance can impact the benefits the person you are caring for gets.

For example, they will usually stop receiving a severe disability premium or an extra amount for severe disability premium if they are on Pension Credit.

You can apply for Carer's Allowance and find out more about the exact eligibility criteria via www.gov.uk/carers-allowance/how-to-claim.

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