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The department recovered £47.3 million in Carer’s Allowance debt in 2023/24, up from £19.6 million in 2018/19, and wrote off £9.1 million in debt compared to £2.7 million in 2018/19.
The Carers Trust welcomed the review but called for a commitment to write off debts and for a wider review and reform of the “archaic and unfair” Carer’s Allowance system overall.
Carer's Allowance is a non-contributory benefit in the United Kingdom payable to people who care for a disabled person for at least 35 hours a week. It was first established as Invalid Care Allowance [ 1 ] in 1976, and married women were not eligible.
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Carers will be able earn up to £10,000 without losing Carer's Allowance. Miners' pensions to rise by 2.5%. Pension credits to rise by 4.5%. Fuel duty frozen. Employees' national insurance contributions (NICs) will not rise. [15] [21] Employers' NICs will rise by 1.2% to 15% and the threshold fall from £9,100 to £5,000. [15] [22]
In 1976 Invalid Care Allowance was introduced – the first benefit for carers and still the only benefit specifically for carers. It was renamed Carer's Allowance in April 2003. It is officially described as “a non-contributory, non means-tested, income-maintenance benefit, not intended to be a wage for caring, nor a payment for the services ...
The benefit cap is a UK welfare policy that limits the amount in state benefits that an individual household can claim per year. It was introduced by the Cameron–Clegg coalition government in 2013 [1] as part of the coalition government's wide-reaching welfare reform agenda which included the introduction of Universal Credit and reforms of housing benefit and disability benefits.
Historically, the amount a council could claim back was capped at 90% of Local Housing Allowance, which is used to work out how much in benefits people are entitled to.