Carers Allowance gets reprieve from Government

The Government has confirmed that eligibility for Carer’s Allowance, will not be tightened with the introduction of the new disability benefit, the Personal Independence Payment (PIP).

Lord Freud, Minister of State for Work and Pensions, stated that both rates of the daily living component of the new Personal Independence Payment would be used as a criterion to determine the entitlement to Carer’s Allowance. The clarification from the Minister came after concerns that the Welfare Reform Bill left the future of Carer’s Allowance unclear.

The Welfare Reform Bill will replace Disability Living Allowance (DLA) with a new benefit the Personal Independence Payment (PIP).

Entitlement to Carer’s Allowance is currently established through a disabled person getting the middle or higher rate care component of Disability Living Allowance and there was a real concern that reducing the number of care components from three to 2 in the new disability benefit would squeeze out many carers.

Although it is worth only £55.55 per week and is the lowest benefit of its kind, Carer’s Allowance is vital income for around 550,000 people who care, unpaid, for family or close friends and who cannot work full time.