Martin Lewis says DWP rule change is coming for 1.4 million people

Martin Lewis has welcomed a Department for Work and Pensions (DWP) rule change which will benefit 1.4 MILLION people. Carer's Allowance earnings thresholds could rise by around £30 a week in tomorrow's Autumn Budget.

Chancellor Rachel Reeves is expected to announce the change will come into force from April 2025, as part of the 'painful' autumn budget. Taking to social media, ITV and BBC star Mr Lewis said: “Good news. The Carers Allowance earnings threshold will be increased from £151 to at least £181 in the #Budget tomorrow, starting April 2025.

“So carers can earn more and still receive the allowance. PS I've written at least £181 as it's currently £151 and the confirmation is it'll rise "over £30 extra a week" - we think as it’s based on minimum wage hours it'll be £183, but that isn't confirmed.”

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There have also been calls for the allowance itself to increase, and for the current "cliff-edge" to be replaced with a taper so that recipients don’t lose all their benefits for earning just 1p over the limit. At the moment, carers receive £81.90 a week if they care for someone at least 35 hours a week and if they get certain benefits.

Helen Walker, Chief Executive of Carers UK said: "We are delighted to hear that the Chancellor is expected to increase the earnings limit on Carer's Allowance, something that we've been asking of Government for nearly two decades. It's great that the Government seems to be taking swift action to end what we feel is a significant injustice for some of the most deserving people of this country, unpaid carers.

"It's been heartbreaking and frustrating to hear carers having to choose between paid work and Carer's Allowance simply because of a rise in the National Living Wage - something that is supposed to benefit low paid workers, not put them out of work. We're delighted that this is being addressed.

"Carers have told us that juggling work and care is critical for them, keeping a toe in the labour market whilst caring significant hours for their older, ill and disabled relatives and friends. This is a really important poverty prevention measure and will help many carers, particularly women, stay in the labour market.”