Carers allowed to earn over the weekly limit without losing out as ‘cliff-edge’ abolished in the budget
Summary
The article says Chancellor John Healey will announce a tapered earnings rule for the UK’s carer’s allowance in Wednesday’s budget, replacing the rule that removed a full weekly payment when a carer earned even slightly above the limit. Under the proposed system, the benefit would fall by £1 for each £1 earned above the limit, so carers would not lose their allowance all at once.Key Facts
- The current weekly earnings limit is £204, and the weekly carer’s allowance payment is £86.45.
- Under the current rule, earning even a penny above the limit can cost a carer the full weekly payment.
- The article says some carers accumulated debts of £2,000 to £5,000, with some debts reaching £20,000.
- A government-commissioned review found that about 180,000 carers built up overpayment debts totaling £300 million between the years covered by the review.
- The review described hardship and distress linked to the allowance’s rules and the Department for Work and Pensions’ administration.
- The budget is also expected to make higher tax-free mileage rates permanent, including 55p per mile for the first 10,000 business miles and 35p per mile above that.
- The Treasury estimates that the mileage-rate change would benefit about three million employees and self-employed people who use their own vehicles for work.
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