Dear Constituent,

Thank you for contacting me about Carer’s Allowance. I and my colleagues in Government recognise and appreciate the vital role played by unpaid carers now more than ever, and I understand that this is an extremely important issue for many carers.

The primary purpose of Carer's Allowance is to provide a measure of financial support for people who give up the opportunity of full-time employment in order to care for a severely disabled person. It must be stressed that it is not a carer’s wage or a payment for the services of caring, nor is it intended to replace lost or forgone earnings in their entirety.

The Carer's Allowance earnings limit is not linked to the number of hours worked. Instead, it is set at a level that aims to encourage people to maintain a link with the labour market through part time work. The earnings limit for Carer's Allowance is a net figure, meaning it takes into account income tax, National Insurance contributions and half of any contributions to an occupational or personal pension, and there are also a number of other deductions which can be made. That means that people can earn significantly more than £128 per week gross and still be eligible for Carer's Allowance.

In the past decade, the rate of Carer’s Allowance has increased from £53.90 to £67.25 a week, meaning nearly an additional £700 a year for hundreds of thousands of carers.

I would encourage carers to check their eligibility for additional support, such as Universal Credit. Universal Credit can include an additional amount for carers who provide care of 35 hours or more each week for a severely disabled person. For carers who satisfy the qualifying criteria, an additional amount of £162.92 per month is included in their Universal Credit entitlement. They may also benefit from the extra £1040 that has been added to the standard allowance in Universal Credit  this financial year.

Thank you again for taking the time to contact me.

Yours,

EDWARD LEIGH MP