Reports suggest the UK government is set to significantly increase the Carer's Allowance, bringing it closer to the national living wage. The move comes amidst a campaign pushing for a fairer rate for unpaid carers, who contribute billions to the economy annually.
The Department for Work and Pensions (DWP) is poised to announce a significant increase to the Carer's Allowance , a benefit for individuals who dedicate 35 hours or more per week to unpaid care. Reports suggest the increase could reach as much as £319, aligning the weekly payment with the national living wage. Currently, the allowance stands at £81.90 per week (£327.60 every four weeks).
A campaign advocating for this change, urging the new Labour government and the DWP to take action, proposes a weekly payment of £400.40 (£1,601.60 every four weeks). The petition demanding this increase highlights the disparity between the current allowance and the national minimum wage for those over 21, which is £11.44 per hour. It emphasizes that the Carer's Allowance effectively equates to £2.34 per hour, significantly lower than the minimum wage. The petition also underscores the immense contribution unpaid carers make to society, citing a study that revealed their daily economic contribution amounts to £445 million. This translates to £162 billion annually, equivalent to a second National Health Service (NHS) in England and Wales. Despite this invaluable contribution, carers currently receive a taxable benefit of £4,258.80 per year. Due to its taxable nature, the allowance is treated as income when claiming other benefits like Universal Credit, often leaving carers struggling to make ends meet. Approximately 1.4 million people in the UK currently rely on the weekly £81.90 Carer's Allowance. But the allowance comes with a string of limitations. Carers can earn additional income alongside the allowance, but a strict limit of £151 per week, after deductions, applies. Exceeding this limit, even by a single pound, results in the complete loss of the benefit, leaving carers vulnerable to prosecution for benefit fraud
CARER's ALLOWANCE BENEFITS UK GOVERNMENT NATIONAL LIVING WAGE UNPAID CARE SOCIAL WELFARE
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