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HomeNewsFinanceCarer's Allowance to rise next year - how much will you get?

Carer's Allowance to rise next year – how much will you get?

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One of the groups recognised as being most vulnerable to the cost of living crisis are unpaid carers. Many in this group get support from the DWP via Carer’s Allowance but with inflation and energy bills rising, the current payment rate may not be enough for some. Chancellor Jeremy Hunt confirmed last week, benefit payments will rise next year by 10.1 percent – including support for carers.

What is Carer’s Allowance?

If someone cares for an individual or loved one for at least 35 hours per week, they will be entitled to Carer’s Allowance via the DWP. Those who receive this benefit are able to get £69.70 a week.

The person being looked after will need to be claiming at least one of the qualifying benefits. Among these payments include the daily living component of Personal Independence Payment (PIP), the middle or highest rate of Disability Living Allowance and Attendance Allowance.

People do not get paid extra Carer’s Allowance if they look after more than one person. If another person cares for the same person as the claimant, only one is able to receive the benefit payments.

Those eligible for Carer’s Allowance could also be entitled to Carer’s Credit, which helps boost peoples’ state pensions. Claimants living in Scotland are also entitled to Carer’s Allowance Supplement, which offers two additional payments every year.

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How much will Carer’s Allowance rise to?

Following Mr Hunt’s speech last week, the Government has confirmed the rate of payment will rise by 10.1 percent. Similarly, the state pension, Pension Credit and other benefit payments are going up by this amount.

This figure is based on the triple lock, which is the pledge to raise the state pension by either inflation, average earnings or 2.5 percent. Whichever is the highest figure will be used to determine the pension payment rate.

September’s Consumer Price Index (CPI) rate of inflation is used every year as a potential indicator of how much the state pension will rise. With inflation being higher than average earnings and 2.5 percent for that month, payments are to rise by 10.1 percent.

When this rate hike is implemented onto other benefit payments, weekly payments for Carer’s Allowance will rise to £76.74. This is another £300 a year in the pocket for unpaid carers.

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What other support is available?

Outside the announcement that benefit payments will rise next April, Mr Hunt confirmed 2023 will see another wave of cost of living payments rolled out to vulnerable groups across the country.

Notably, pensioners and people with disabilities are set to receive extra payments worth £300 and £150, respectively. Payments of the same amount were awarded to these groups in 2022.

On top of this, the Chancellor revealed there will be another cost of living payment for those on means-tested benefits worth £900. In comparison, those on these types of payments were able to claim an extra £650 this year.

Due to Carer’s Allowance not being a means-tested benefit, unpaid carers are likely to miss out on this £900 cost of living payment. However, they may be able to claim it through other means.

READ MORE: Attendance Allowance: 6 myths that stop millions of pensioners claiming up to £370 a month

Experts have long been warning of the particular struggles carers are dealing with under the current economic environment. Various charities and organisations have praised Mr Hunt’s fiscal announcement but believe more can be done.

Helen Walker, the chief executive of Carers UK, warned the Government’s decision only goes so far in remedying the dire financial situation many unpaid carers face in the UK at this moment in time.

Ms Walker explained: “We’re relieved that benefits are being uprated with inflation but this doesn’t tackle the long lasting and systemic issues with the level of Carer’s Allowance which remains the lowest benefit of its kind, despite carers providing 35 hours of care.

“We need an urgent review of the benefit to ensure that carers don’t experience the kinds of poverty and financial hardship that we’ve seen even before the cost of living crisis.

“Whilst the extra funding for social care is welcome and will help with some of the pressure points in social care, it still falls short of what we really need to give carers the breaks and support they need – 40 percent of carers have not had a break in the last year.

“Long term sustainable funding of social care must remain an urgent priority for the Government, to provide a decent life for people needing care, to prevent carers from having to give up work in order to care and to stop their health and wellbeing from deteriorating.”

During his Autumn Statement, the Chancellor said: “There is a global energy crisis, a global inflation crisis and a global economic crisis. But today with this plan for stability, growth and public services, we will face the storm.

“We do so today with British resilience and British compassion. Because of the difficult decisions we take in our plan, we strengthen our public finances, bring down inflation and protect jobs.”



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