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<p><strong> </strong></p><p>Many carers who are receiving Carer’s Allowance are also
in households receiving Universal Credit, whose structure of tapers and work allowances
(where applicable) effectively takes precedence over the earnings rules in Carer’s
Allowance for these carers. This helps ensure that, if they wish to work, carers on
the lowest incomes are better off doing so. There is, however, no requirement for
those caring for 35 hours or more a week to undertake work search whilst receiving
Universal Credit. In work or out of work, these carers may also receive the Universal
Credit Carer Element, worth around an additional £2,000 a year.</p><p> </p><p>Some
carers may not be able to receive Universal Credit, for example due to their levels
of household capital or income. These carers may only be receiving Carer’s Allowance.
This is not means-tested and not based on National Insurance contributions. It has
an earnings limit which permits carers to undertake some part-time work if they are
able to do so. This recognises the benefits of staying in touch with the workplace,
including greater financial independence and social interaction.</p><p> </p><p>We
know that some carers who are above Universal Credit thresholds are keen to maintain
contact with the labour market, so we want to encourage carers in this position to
combine some paid work with their caring duties wherever possible. That is why we
regularly increase the earnings limit when it is warranted and affordable. The Carer’s
Allowance earnings limit is currently £132 a week. Subject to parliamentary approval,
this will increase to £139 a week from April 2023. This will mean that the earnings
limit will have increased by over one third since 2010.</p><p> </p><p>There is no
“hours rule” in Carer’s Allowance as far as earnings are concerned.</p>
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