DWP £45 Weekly Earnings Increase: Thousands of unpaid carers across the UK are set to benefit from a significant update to Carer’s Allowance rules. The Department for Work and Pensions (DWP) has confirmed a £45 increase to the weekly earnings threshold, which will take effect from May 2025. This means many carers will be able to earn more while still receiving vital financial support.
The DWP £45 Weekly Earnings Increase marks the biggest rise in the Carer’s Allowance earnings limit to date. This article explains what the change means, who it affects, how it supports carers financially, and what you should do to stay compliant with the new rules. We’ll also look at the DWP’s response to overpayments and ongoing efforts to support carers more fairly.
DWP £45 Weekly Earnings Increase Explained
From May 2025, the DWP £45 Weekly Earnings Increase will raise the Carer’s Allowance earnings threshold from £151 to £196 per week. This change allows more people to qualify for Carer’s Allowance while earning a modest income. It is especially useful for those working part-time or balancing low-paid jobs with caregiving duties.
This update is expected to help over 60,000 additional carers become eligible by the 2029/2030 tax year. It also addresses previous issues where carers lost their allowance after exceeding the old threshold by small amounts. Below is a breakdown of the main details and what this change means in practice.
Overview Table: DWP £45 Weekly Earnings Increase Summary
| Detail | Information |
| New Earnings Threshold | £196 per week |
| Previous Threshold | £151 per week |
| Effective From | May 2025 |
| Current Carer’s Allowance Rate | £81.90 per week (2025 rate) |
| Minimum Care Hours Required | 35 hours per week |
| Estimated New Beneficiaries | Over 60,000 by 2029/2030 |
| Target Group | Unpaid carers with part-time or low-paid employment |
| Managed By | Department for Work and Pensions (DWP) |
What Is Carer’s Allowance?
Carer’s Allowance is a benefit for people who spend a significant amount of time looking after someone with a disability or long-term health condition. To be eligible, you must:
- Provide at least 35 hours of care each week
- Earn under the weekly threshold, after tax and deductions
- Care for someone who receives certain qualifying disability benefits
As of 2025, the weekly payment is £81.90. With the new rules, you can now earn up to £196 per week without losing this support, allowing for more flexibility in combining care with part-time work.
Why the Change Matters
This earnings increase is not just a policy update—it’s a major step toward recognising the contributions of unpaid carers. According to DWP Minister Andrew Western, the rise shows how the government is valuing carers and giving them more room to earn without penalties.
Many carers have faced tough choices between staying under the earnings limit or losing their Carer’s Allowance altogether. The new threshold eases that pressure, offering more breathing space to work and earn a fair income.
For those juggling jobs and caring responsibilities, the DWP £45 Weekly Earnings Increase is a much-needed boost. It helps ensure that support reaches the people who truly need it while allowing them to remain financially active.
Overpayment Review Launched for Past Carer’s Allowance Cases
Alongside the earnings threshold increase, the DWP has launched an independent review into overpayments of Carer’s Allowance. These overpayments occurred when individuals unintentionally earned more than the allowed threshold, often without realising it.
The review, led by Liz Sayce OBE, will examine how these overpayments happened, how to prevent future issues, and how to better support carers who are affected. The findings are expected in summer 2025.
The DWP has acknowledged that many of these cases were not the result of fraud but simple misunderstandings or lack of clarity in reporting income changes. The goal now is to build a more supportive and transparent system for carers.
Support for Carers with Overpayments
The DWP is also taking steps to support carers who are currently repaying overpayments. If you’re struggling with a repayment plan, you can contact the DWP to arrange affordable and flexible repayment options based on your financial situation.
Additionally, the department has started sending text message reminders to help carers report changes in income. This proactive step is aimed at reducing the risk of future overpayments and improving communication between the DWP and carers.
Overpayments may affect people who:
- No longer receive Carer’s Allowance
- Are no longer acting as carers
- Accidentally earned above the limit
- Provided incorrect or outdated information
With these new support mechanisms in place, the DWP aims to avoid unnecessary financial strain on carers who are already under pressure.
What Should Carers Do Now?
With the DWP £45 Weekly Earnings Increase approaching in May 2025, it’s a good time for carers to:
- Check their weekly earnings after tax and National Insurance
- Update their information with the DWP if their income has changed
- Review their eligibility for Carer’s Allowance under the new threshold
- Stay informed about the overpayment review findings in summer 2025
If you’re close to the earnings limit or unsure whether you qualify, it’s worth contacting the DWP for guidance. You may also want to explore local carer support groups or advice lines for additional help.
FAQs
1. What is the new Carer’s Allowance earnings limit starting in May 2025?
The threshold will increase from £151 to £196 per week, allowing more carers to earn extra without losing their benefits.
2. How many hours of care must I provide to receive Carer’s Allowance?
You must provide at least 35 hours of unpaid care each week.
3. How many people will benefit from the new earnings threshold?
Over 60,000 additional carers are expected to qualify by the 2029/2030 tax year.
4. What if I’ve been overpaid Carer’s Allowance in the past?
The DWP is running a review and offers flexible repayment plans. Contact them directly if you’re affected.
5. What is the current rate of Carer’s Allowance?
As of 2025, the rate is £81.90 per week, paid directly into your bank account.
Final Thought
The DWP £45 Weekly Earnings Increase is a positive move for carers across the UK. It reflects a broader understanding of the real-life challenges unpaid carers face daily. Whether you’re already claiming Carer’s Allowance or wondering if you qualify, this change could mean more flexibility, better financial balance, and greater peace of mind.
