DWP £300 per Month Financial Boost: Who Can Claim and What’s Changed

DWP £300 per Month Financial Boost: The DWP £300 per Month Financial Boost is set to impact thousands of unpaid carers across the UK. Thanks to a recent rule change by the Department for Work and Pensions (DWP), more people now qualify for Carer’s Allowance, offering long-overdue support to those who dedicate their time to looking after others.

This article breaks down how the DWP £300 per Month Financial Boost works, who can claim it, and how it interacts with other benefits like Universal Credit. If you’re a carer or supporting someone who needs care, this guide will help you understand the new rules and what financial help is available.

DWP £300 per Month Financial Boost

The DWP £300 per Month Financial Boost comes from changes to Carer’s Allowance eligibility. The earnings threshold has been raised from £151 to £196 per week (after deductions), making it easier for people to qualify. As a result, over 60,000 more carers could become eligible by the end of the decade. The allowance is now paid at a rate of £83.30 per week, which totals approximately £333 every four weeks.

This is a much-needed change, especially for those who have previously been forced to cut down on work or give up jobs to meet the old income limits. With the new threshold, carers can earn more and still qualify for support.

Overview of DWP £300 per Month Financial Boost

Category	Details
Benefit Name	Carer’s Allowance
Monthly Boost Amount	£333 every four weeks
New Weekly Payment Rate	£83.30
Old Weekly Rate	£81.90
Earnings Threshold (New)	£196 per week (after deductions)
Earnings Threshold (Old)	£151 per week
Who Benefits	Unpaid carers meeting eligibility criteria
Universal Credit Impact	UC reduced by £360.96 per month if Carer’s Allowance is received
Carer Element (UC)	Adds £201.68 to your Universal Credit payment
Payment Schedule	Every four weeks

How Does the Carer’s Allowance Increase Help?

This increase gives thousands of carers a stronger financial cushion. Previously, many avoided taking on extra work for fear of earning too much and losing their benefits. Now, with the higher earnings cap of £196 per week, more carers can manage part-time jobs or keep flexible roles without losing eligibility.

The change helps carers strike a better balance between employment and caregiving. According to Carers UK, this rule update reduces the financial strain and helps carers stay in work, which also supports their mental and financial wellbeing.

Carer’s Allowance Payment Rates and Timing

The weekly rate of Carer’s Allowance rose in May 2025, moving from £81.90 to £83.30. This adjustment leads to a total payment of £333.20 every four weeks. However, carers will only see the full increased amount after May 7, once they’ve completed a full four-week payment cycle under the new rate.

It’s important for claimants to monitor their payment schedules and ensure they are receiving the correct amount based on this change.

Effect of Carer’s Allowance on Universal Credit

If you’re receiving both Carer’s Allowance and Universal Credit, there are some important interactions to understand. Your Universal Credit payment will be reduced by £360.96 per month if you also receive Carer’s Allowance. However, this impact can be lessened by claiming the Carer Element, which adds £201.68 to your Universal Credit.

While the combined effect may still reduce your total UC payment, the Carer Element is a valuable supplement that helps balance the difference. Make sure to update your UC journal or speak with your work coach to apply this correctly.

Eligibility for Carer’s Allowance

To qualify for Carer’s Allowance under the DWP £300 per Month Financial Boost, you must meet the following criteria:

• Be at least 16 years old
  
• Spend at least 35 hours per week caring for someone
  
• Earn no more than £196 per week after tax, National Insurance, and expenses
  

Additionally, the person you care for must be receiving one of these qualifying benefits:

• Personal Independence Payment (PIP) – daily living component
  
• Disability Living Allowance (DLA) – middle or highest care rate
  
• Attendance Allowance
  
• Scottish or Adult Disability Payment – daily living component
  
• Pension Age Disability Payment
  
• Armed Forces Independence Payment
  
• Constant Attendance Allowance (under War Disablement or Industrial Injuries Benefits)
  
• Child Disability Payment – middle or highest care rate
  

Who Is Not Eligible for Carer’s Allowance?

There are a few situations where you cannot claim Carer’s Allowance:

• If someone else is already claiming Carer’s Allowance or the Carer Element of Universal Credit for the same person
  
• If your earnings are above £196 per week after allowed deductions
  
• If you don’t meet the minimum 35 hours of care per week
  
• If the person you’re caring for does not receive one of the qualifying benefits
  

Also, be aware: If you receive Carer’s Allowance, the person you care for may lose their Severe Disability Premium or Council Tax reductions, so check with a benefits advisor before applying.

Two Key Takeaways

• Higher earnings limit means more carers can qualify:
  The new threshold of £196 per week allows many part-time workers to remain eligible for Carer’s Allowance.
  
• Receiving Carer’s Allowance affects other benefits:
  Universal Credit is reduced if you also get Carer’s Allowance, but this can be balanced with the Carer Element.
  

FAQs

Final Thought

The DWP £300 per Month Financial Boost is a much-needed lifeline for many unpaid carers who juggle both jobs and caregiving. With a raised earnings threshold and increased allowance, more people now have access to vital financial support. This change helps carers stay in work, support their families, and maintain a better quality of life.