Martin Lewis calls for change to DWP Carer's Allowance 'cliff edge' rules

Martin Lewis has called for a major shake-up of a benefit claimed by more than a million unpaid carers in the UK over what he has branded "simply stupid" eligibility rules.

Carer's Allowance offers £81.90 per week in financial support to those who care for someone at least 35 hours each week. However, strict criteria must be met in order to claim the benefit - including that your earnings must be £151 or less per week after tax, National Insurance, and expenses.

Anyone who receives more than this weekly limit is currently not eligible for any Carer's Allowance, even if they and the person they care for meet other criteria. MoneySavingExpert founder Martin has called for an end to this "cliff edge", which means the allowance must be repaid in full if a claimant's earnings exceed this amount even by a few pence.

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The strict Carer's Allowance rules can also see claimants forced to pay a penalty or even be taken to court if they fail to report changes to their income. Other changes that must be reported include starting a job, starting or ending full-time education, or changes to the benefits received by the person you care for.

Taking to social media, Martin said: "Many reporting the scandal that those caring 35+hrs/week often for vulnerable loved ones must repay £1,000s just for slipping a quid or two over the max earnings threshold (currently £151/week). Ending that clawback's important. Yet the cliff edge should end too."

He added: "Almost all other benefits work by taper - i.e. earn over the limit and the benefit doesn't immediately stop, it gradually reduces. With Carer's Allowance, a penny over and you get nowt. This is simply stupid and should be stopped. Carers are a backbone of the UK, saving the state and NHS billions. The £82/week allowance is pitifully low, at the very least we should end the cliff-hanger so work pays."

It comes as more than 134,000 carers are being forced to repay £250 million to the Department for Work and Pensions (DWP) in Carer's Allowance overpayments. The department said it was "progressing an enhanced notification strategy" to alert carers to overpayments, the BBC reports.

DWP said the total amount of Carer's Allowance overpayments "includes historical debts which the department is seeking to recover". A spokesperson added that Carer's Allowance expenditure is forecast to be £4.2 billion this year, and that the department has increased the benefit by almost £1,500 since 2010.

Who is eligible for Carer's Allowance?

In order to be eligible for Carer's Allowance, the person you care for must already be in receipt of one of the following benefits:

• Personal Independence Payment - daily living component

• Disability Living Allowance - the middle or highest care rate

• Attendance Allowance

• Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit

• Constant Attendance Allowance at the basic (full day) rate with a War Disablement Pension

• Armed Forces Independence Payment

• Child Disability Payment - the middle or highest care rate

• Adult Disability Payment - daily living component at the standard or enhanced rate

You cannot get Carer's Allowance if you share the care of someone and the other carer is already claiming Carer's Allowance or Carer Support Payment for that person, or if they are receiving the extra amount of Universal Credit for caring for someone who gets a disability-related benefit.

You need to spend at least 35 hours a week caring for someone to be able to claim the benefit - this does not have to be someone you're related to, or someone you live with. Caring for someone can include helping them with washing and cooking, taking them to doctor's appointments, or assisting them with household tasks such as shopping and managing bills.

The £151 limit applies to any income from employment and self-employment after tax, National Insurance and expenses. Expenses can include 50% of your pension, travel costs between workplaces not paid for by your employer, equipment or specialist clothing needed to do your job, or business costs if you are self-employed.

Carer's Allowance can affect the other benefits that both you and the person you care for can receive; for example, if you get Universal Credit, your payments will be reduced by an amount equal to your Carer's Allowance payment. You also cannot get the full amount of both Carer's Allowance and your State Pension at the same time.

You must be aged 16 or over to claim Carer's Allowance, and you must not be in full-time education or studying for more than 20 hours a week. More information about the benefit can be found on the GOV.UK website.