Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if he will make it his policy to automatically increase on an annual basis the earnings limit for carer's allowance in line with annual increases in the national living wage.
The primary purpose of Carer’s Allowance is to provide a measure of financial support and recognition for people who give up the opportunity of full-time employment. It was never intended to be a carer's wage nor a payment for the services of caring, and is therefore not comparable with the National Living Wage.
The earnings limit for Carer’s Allowance is not linked to the number of hours worked. It is currently £110 per week, net of tax, National Insurance and various expenses. This offers help for carers who can undertake some employment in addition to their caring responsibilities. The limit was increased by 8 per cent in April 2015 from £102 per week. Around 4,000 people will benefit from this increase this year.
The Government keeps the earnings limit and rules under review, including whether an increase in the threshold is warranted and affordable.