- The earnings limit to be eligible to claim Carer Support Payment will go up from £151 per week to £196 per week in April.
- Carers Support Payment, which remains the lowest benefit of its kind, will also rise from £81.90 to £83.30 – less than the price of a first-class postage stamp.
Unpaid carers who are in employment will benefit from a rise in the earnings limit on Carer Support Payment, allowing them to earn up to £2,340 more per year.
From 7 April, unpaid carers in paid work will be able to earn up to £196 per week, after tax, National Insurance and certain expenses, and still be eligible to claim Carer Support Payment. This is an increase of £45 compared to the previous earnings threshold of £151 and allows carers to work the equivalent of 16 hours at the National Living Wage.
Carers Scotland welcomes this change, which is the largest increase in the earnings limit for the benefit since it was introduced in 1976. It will allow unpaid carers to take on more paid work while receiving Carer Support Payment, providing vital income for those juggling employment with care.
Carer Support Payment is the main carer benefit, replacing Carers Allowance in Scotland. It is available if you spend at least 35 hours a week providing care and support to someone who is disabled, has an illness or long-term condition, who needs extra help as they get older or is affected by addiction.
The earnings limit increase will help unpaid carers in paid employment to stay in work, increasing their earnings potential and providing more financial security. It will also allow many carers whose earnings are above the previous limit to access Carer Support Payment for the first time.
Carers Scotland continues to call for the earnings limit to be tied to the National Living Wage so that carers do not have to reduce their hours as the earnings limit fails to keep up with increases to the National Living Wage. The charity says regulations to formally tie Carer Support Payment to the National Living Wage are vital.
However, for those who are unable to combine paid work and care, the value of Carer Support Payment remains low, despite the additional support of the twice yearly Carer’s Allowance Supplement 1. From 7 April 2025, Carer Support Payment will rise by 1.7% from £81.90 to £83.30 per week, which is less than the price of a first-class postage stamp.
UK Government plans for welfare reform are likely to have a subsequent impact on the Scottish budget and on the already limited incomes of unpaid carers and disabled people in Scotland.
There are an estimated 100,000 unpaid carers living in poverty in Scotland, with carers 56% more likely to be in poverty, and 60% more likely to be in deep poverty, than those without caring responsibilities.
Fiona Collie, Head of Public Affairs and Communications at Carers Scotland, said: “Carers Scotland welcomes the increase in the earnings threshold to £196 which will support more unpaid carers to earn more from paid employment alongside their Carer Support Payment. This change will also enable more carers to claim Carer Support Payment.
“The new threshold amount applies once a carer has taken away deductions for tax, national insurance and half of any pension contribution. Carers may also be able to deduct some of the costs to provide care whilst working.
“We would encourage all carers in employment or who are thinking about returning to employment to find out more about Carer Support Payment and the earnings threshold from the Carers Scotland website or by contacting the Carers UK advice line.”
Local MSP Gordon Macdonald commented: “I welcome this improved support for unpaid carers across the city.
“The Scottish Government to raise the earnings limit for Carer Support Payment once fully launched, based off feedback from carers and support organisations – this is now coming into place and supporting carers throughout the city.
“These changes will increase the number of unpaid carers able to access financial support.
“This is just one of many examples of increased powers in Scotland being used to improve lives here in Edinburgh – we could go so much further with the full powers of independence.
Find out more about Carer Support Payment and the new earnings threshold here on the Carers Scotland website.
Alternatively, you can access the Carers UK helpline from 9am – 6pm Monday to Friday by calling 0808 808 7777 or email advice@carersuk.org at any time.