Carers to earn more without losing out

Carers will be able to earn more money without losing their benefits, Work and Pensions Secretary Peter Hain has announced.

From 1 October 2007, the maximum amount of money that carers in Great Britain will be allowed to earn without losing their entitlement to Carer's Allowance (CA) will rise from £87 to £95 a week, after expenses such as income tax and national insurance contributions have been taken into account.

Peter Hain said:

"Carers play a vital role in our communities, providing invaluable help and support for their loved ones. It is right that where we can offer further support we do so. The higher weekly limit of £95 means that more carers will be able to keep their Carer's Allowance if they earn more money. And it means that more carers will now be able to receive Carer's Allowance for the first time. Together with next April's normal increase in Carer's Allowance, carers should be able to receive more than £7,500 a year combined."

The increase in the earnings limit is an interim measure ahead of the government's forthcoming review of the National Carers Strategy. The strategy will look at how CA could be reformed to meet today's needs more effectively.

Carers who employ someone to look after a disabled person or a child aged under 16 while they are at work will continue to be entitled to the allowance while earning significantly more than the normal limit.