DWP £400.40 per Week: The UK’s Department for Work and Pensions (DWP) is considering a significant increase in the Carer’s Allowance, with a potential rise of up to £319. This move comes amid growing pressure from campaigns advocating for fair compensation for unpaid carers. Campaigners suggest that the allowance should be aligned with the national living wage, which would increase weekly payments to £400.40 or £1,601.60 every four weeks.
Let’s dive into what this increase could mean for carers and why this issue has gained national attention.
Current Carer’s Allowance and the Proposed Change
Current Rate
- The current Carer’s Allowance is £81.90 per week or £327.60 every four weeks.
- To qualify, carers must provide at least 35 hours of unpaid care per week.
At the current rate, carers earn about £2.34 per hour, far below the national living wage, which is currently £11.44 per hour for individuals aged 21 and above.
Proposed Increase
- The campaign demands a rise in the weekly allowance to £400.40 per week, matching the national minimum wage for 35 hours of work.
- If approved, carers would receive £1,601.60 every four weeks, representing a much-needed financial boost.
Why is the Carer’s Allowance Being Questioned?
Carers’ Role in the Economy
The petition highlights how vital unpaid carers are to society. According to a recent study:
- Unpaid carers contribute £445 million per day to the economy, which totals £162 billion per year.
- This contribution is said to be equivalent to funding a second NHS system in England and Wales.
However, despite this immense value, carers currently receive only £4,258.80 per year through Carer’s Allowance.
The Financial Struggles of Carers
Carer’s Allowance is classified as a taxable benefit, meaning it is treated as income when calculating eligibility for other benefits, such as Universal Credit. For many carers, this allowance alone is insufficient, and they often rely on additional financial support to meet basic living expenses.
One major issue is the earnings limit of £151 per week.
- Carers can earn up to this amount through other jobs without affecting their benefits.
- However, if they earn even £1 above the limit, they risk losing the entire Carer’s Allowance, which could lead to prosecution for benefit fraud.
How Many People Would Benefit from the Increase?
Currently, around 1.4 million people in the UK receive Carer’s Allowance. If the proposed increase goes through, millions of families could experience significant financial relief, helping them better manage the demands of caring for loved ones.
The proposed increase in Carer’s Allowance is more than just a financial adjustment; it’s a recognition of the critical role unpaid carers play in society. These individuals provide essential support, often sacrificing their careers, time, and personal well-being. Raising their allowance to match the national living wage would not only help them survive financially but also acknowledge their immense contributions to the nation’s economy and healthcare system.
As discussions continue, all eyes are on the DWP and the UK’s new Labour government to see whether they act on this proposal and provide long-overdue support to the nation’s carers.
SOURCE: LINK
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