Caring for a loved one is a selfless and demanding role. For many carers, the Carer’s Allowance offers essential financial support. With the latest increase in Carer’s Allowance rates for 2024/2025, it's crucial to understand how much you can claim, who qualifies, and how these changes may impact your benefits. Whether you're an experienced carer or new to the role, this guide provides everything you need to know.
What is carer’s allowance?
Carer’s Allowance is a government-provided income replacement benefit for individuals who dedicate at least 35 hours per week to caring for someone with a disability, illness, or other medical condition. It is designed to support carers who may not be able to work full-time due to their responsibilities.
Key facts about carer’s allowance:
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- Paid weekly or every four weeks.
- Available to carers aged 16 or over.
- Not means-tested, but subject to an earnings cap of £139 per week (after deductions).
2024/2025 Carer’s allowance rates
The Carer’s Allowance rate for 2024/2025 increased by 6.7% in April 2024, aligning with inflation. Here’s a breakdown:
| Payment Period | 2024/2025 Amount | 2023/2024 Amount | Increase |
|---|---|---|---|
| Weekly | £81.90 | £76.75 | £5.15 |
| Four-Weekly | £327.60 | £307.00 | £20.60 |
| Yearly | £4,258.80 | £3,991.00 | £267.80 |
| Eligibility Criteria | Details |
|---|---|
| Hours of Care | Provide care for at least 35 hours per week. |
| Age | Must be aged 16 or older. |
| Earnings Cap | Earn no more than £139 per week after deductions. |
| Residency | Live in the UK and meet residency requirements. |
| Person Being Cared For | Must receive a qualifying benefit (e.g., Attendance Allowance, PIP). |
This increase provides much-needed support to carers facing rising living costs.
How much will carer’s allowance increase in 2025?
From April 2025, Carer’s Allowance rates are expected to rise by an additional 1.7%. The weekly payment will increase from £81.90 to £83.30, with corresponding adjustments for four-weekly and yearly payments.
Eligibility for carer’s allowance
To qualify for Carer’s Allowance, you must meet the following criteria:
- Hours of Care: Provide care for at least 35 hours per week.
- Age: Be 16 or older.
- Earnings Cap: Earn no more than £139 per week after deductions.
- Residency: Live in the UK and have been in England, Scotland, Wales, or Northern Ireland for at least two of the last three years.
The person you care for must also be receiving one of the following qualifying benefits:
- Attendance Allowance
- Disability Living Allowance (DLA) at the middle or higher care rate
- Personal Independence Payment (PIP) daily living component
- Adult Disability Payment in Scotland
How to Apply for Carer’s Allowance
Eligible carers can apply for Carer’s Allowance through the GOV.UK website or by requesting a paper application form. You will need the following information:
- Your National Insurance number.
- Bank or building society details.
- The details of the person you care for, including their date of birth and qualifying benefits.
Once submitted, applications are typically processed within 6-12 weeks. If approved, payments are made directly into your account.
Carer’s Allowance and the Benefit Cap
The benefit cap limits the total amount of benefits households can receive. However, if you or your partner claim Carer’s Allowance, you are exempt from this cap. This ensures carers receive the full amount of support without deductions.
Additional benefits for carers
Receiving Carer’s Allowance can also make you eligible for other financial support, such as:
- National Insurance Credits: These count towards your State Pension.
- Universal Credit: Available to low-income individuals or families.
- Pension Credit: Provides extra money to those of State Pension age.
- Council Tax Reductions: Offered by local councils for eligible carers.
- Carer’s Allowance Supplement: Additional payments for carers in Scotland.
Can you work and claim carer’s allowance?
Yes, but your earnings after deductions must not exceed £139 per week. Deductions include:
- Income tax.
- National Insurance contributions.
- Half of any pension contributions.
If your earnings exceed this threshold, you won’t be eligible for Carer’s Allowance.
The updated Carer’s Allowance rates for 2024/2025 highlight the government's effort to support carers across the UK. With exemptions from the benefit cap and additional financial support options, carers can access much-needed assistance to manage their responsibilities.
If you’re eligible, don’t hesitate to apply for Carer’s Allowance and explore other benefits available to support your caregiving journey.
Q&A:
1. How much is Carer’s Allowance in 2024/2025?
The weekly rate is £81.90, with four-weekly payments of £327.60.
2. Who can claim Carer’s Allowance?
Anyone aged 16 or over, caring for at least 35 hours per week, and meeting the income cap can apply.
3. Does Carer’s Allowance affect other benefits?
It may reduce some means-tested benefits like Universal Credit, but it often increases your overall entitlement.
4. Can you claim Carer’s Allowance if you’re a student?
No, full-time students are not eligible for Carer’s Allowance.
5. What happens if I care for multiple people?
You can only claim Carer’s Allowance for one person, even if you care for more than one.
