DWP Carer's Allowance new rates and earnings threshold 2025

Furthermore, the earnings threshold will also rise by around £30 a week.  Chancellor Rachel Reeves announced as part of the autumn budget that the change would come into force from April 2025.

Money Saving Expert founder Martin Lewis has been campaigning to see the rates increased, the threshold raised - and crucially - the 'cliff edge' removed. At present, anyone who earns a penny over the earnings limit receives nothing.

CARERS ALLOWANCE: Pleased to have had a reply from @DWPgovuk over my concern last week that getting rid of the cliff-edge (ie go 1p over the £151wk max earnings limit & carers lose ALL the £82/wk payment) wasn't in the remit of the Independent Review of overpayments.

It says “As…

— Martin Lewis (@MartinSLewis) December 18, 2024

At the moment, carers receive £81.90 a week, and that will increase in April to £83.30.

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This is only if they care for someone at least 35 hours a week and if they get certain benefits. These are:

• Personal Independence Payment - daily living component
• Disability Living Allowance - the middle or highest care rate
• Attendance Allowance
• 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

Carers do not have to be related to, or live with, the person they care for. The care can include:

• Helping with washing and cooking
• Taking the person you care for to a doctor’s appointment
• Helping with household tasks, like managing bills and shopping

If you live in Scotland and get Carer’s Allowance, you may also get Carer’s Allowance Supplement.

You may also need to apply for Carer Support Payment instead of Carer’s Allowance if you live in:

• Aberdeen City
• Aberdeenshire
• Angus
• East Ayrshire
• North Ayrshire
• South Ayrshire 
• Dundee City
• Fife
• North Lanarkshire
• South Lanarkshire
• Moray 
• Perth and Kinross 
• Western Isles

If you currently get Carer’s Allowance, you’ll be automatically moved to Carer Support Payment by spring 2025.

When the move begins, you’ll get letters from the Department for Work and Pensions (DWP) and Social Security Scotland.