Carer’s allowance earnings limit 2020: What is the earnings limit for 2020?

As of 2019 there were as many as 8.8 million adult carers in the UK. Every single day, another 6,000 people take on a caring responsibility and may need support. That’s where the Carer’s Allowance comes in. If you already receive Carer’s Allowance or are applying for it, you will be interested to know the rate has increased for 2020. So what is the Carer’s Allowance earnings limit for 2020?

What is Carer’s Allowance?

If you care for someone for at least 35 hours a week and they get certain benefits, you could be entitled to Carer’s Allowance.

Those receiving carer’s allowance can choose to be paid weekly or monthly.

The money will be paid into your bank account.

Alongside Carer’s Allowance, you’ll automatically get National Insurance credits and may be able to apply for other benefits.

For example, you might be able to apply for Universal Credit, Income Support, or a Council Tax Reduction if you are eligible.

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What is the Carer’s Allowance earnings limit for 2020?

As of April, the Carer’s Allowance earnings limit has increased.

Last year it was £66.15 a week, and this year it is £67.25 a week.

This is an increase of 1.7 percent, and £1.10 a week.

According to Carer’s UK, due to the coronavirus pandemic, new measures allow unpaid carers to continue to claim Carer’s Allowance if they have a temporary break in caring because they or the person they care for gets coronavirus or if they have to isolate because of it.

This is active from March 30.

Also due to the pandemic, you will no longer be required to attend an assessment for a disability benefit face to face.

Director of Policy and Public Affairs at Carers UK Emily Holzhausen OBE said: “Carer’s Allowance will rise with inflation to £67.25 per week, but a £1.10 increase won’t do much for carers who are struggling to pay the bills and put food on the table.

“Carer’s Allowance is the lowest benefit of its kind and Carers UK is calling on the next government to significantly increase the benefit and associated premia to make it fairer for carers across the UK.

“The earnings limit must also be increased so that carers can earn more alongside caring if they want to.

“The 3.9 percent increase to State Pensions will go some way to helping older carers who are not eligible for Carer’s Allowance.

“However in the longer term it would be better if all carers were auto-enrolled into a second pension – a Carer’s Pension – which recognises the value of their unpaid work and reduces the likelihood of financial hardship later in life.”

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Who is eligible for Carer’s Allowance?

To be eligible to receive Carer’s Allowance, both you and the person you care for must be eligible.

The person you care for must already get one of the following benefits:

  • 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

For you personally to be eligible to receive Carer’s Allowance, all of the following must be true:

  • you’re 16 or over
  • you spend at least 35 hours a week caring for someone
  • you’ve been in England, Scotland or Wales for at least 2 of the last 3 years (this does not apply if you’re a refugee or have humanitarian protection status)
  • you normally live in England, Scotland or Wales, or you live abroad as a member of the armed forces (you might still be eligible if you’re moving to or already living in an EEA country or Switzerland)
  • you’re not in full-time education
  • you’re not studying for 21 hours a week or more
  • you’re not subject to immigration control
  • your earnings are £128 or less a week after tax, National Insurance and expenses
  • If your earnings are sometimes more than £128 a week, you might still be eligible for Carer’s Allowance.

How do I calculate my earnings?

According to Gov.uk, your earnings are any income from employment and self-employment after tax, National Insurance and expenses.
Expenses includes:

  • 50% of your pension contributions
  • equipment you need to do your job, for example specialist clothing
  • travel costs between different workplaces that are not paid for by your employer, for example fuel or train fares
  • business costs if you’re self-employed, for example a computer you only use for work

If you pay a carer to look after the person you normally care for, you can treat the care costs that are less than or equal to 50 percent of your earnings as an expense.
However, the carer cannot be your partner, parent, child or sibling.

What doesn’t count as earnings?

Payments that don’t count as earnings include:

  • money received from pensions
  • contributions towards your living or accommodation costs from someone you live with (they cannot be a tenant or boarder)
  • the first £20 a week and 50 percent of the rest of any income you make from someone boarding in your home
  • a loan or advance payment from your employer

Reporting changes

If you are claiming Carer’s Allowance, you must report changes in circumstance, for example:

  • you change, start or leave your job
  • you start earning more than £128 a week
  • you stop being a carer
  • you stop providing at least 35 hours of care a week
  • you take a holiday or go into hospital – even if you arrange care while you’re away
  • the person you care for goes into hospital or takes a holiday

If the person you care for dies, you need to tell the Tell Us Once service.

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