On Monday the Minister for Welfare Delivery, Caroline Nokes announced the proposed social security benefit and pension rates for 2017-18, which included a change to the Carer’s Allowance earnings limit.

The Minister said:

“Today I am announcing the proposed social security benefit and pension rates for 2017-18. The annual up-rating of benefits will take place for state pensions and most other benefits in the first full week of the tax year. In 2017, this will be the week beginning 10 April. A corresponding provision will be made in Northern Ireland.

“The annual up-rating process takes into account a variety of measures:

  • The basic and new State Pension will be increased by the Government’s ‘triple lock’ manifesto commitment, meaning that they will be up-rated in line with the highest of prices, earnings or 2.5%.
  • The Pension Credit Standard Minimum Guarantee will be up-rated in line with the annual rise in earnings, as reflected in Average Weekly Earnings (AWE).
  • Benefits linked to the additional costs of disability, and for carers, are increased by the annual rise in prices, as reflected in the Consumer Price Index (CPI). A number of other elements – including Non-Dependant Deductions (NDDs) – will also be up-rated in line with prices. The majority of working-age benefits have been frozen at their 2015-16 levels for four years under the Welfare Reform and Work Act 2016.

“The list of proposed benefit and pension rates also includes a change to the Carer’s Allowance Earnings Rule, which will be increased for 2017-18 from £110 to £116 a week.”

Department for Work and Pensions Secretary of State, Damian Green added:

“Carers should be celebrated for the vital and selfless work they do every day. That’s why we’re increasing the Carer’s Allowance earnings limit so that more carers who are in work will be able to benefit from this extra support.

Recognising the range of talents and circumstances of people who want to be in work, or work more hours, is central to our plans to build a country that works for everyone.”