A new minimum wage has come into force this month, with the hourly rate going from £6.31 to £6.50. This news is welcomed throughout the country but concerns have also been raised about the implications this may have on carers and the income they receive through the carer’s allowance.
Carers are entitled to claim a carer’s allowance of £61.35. This is restricted to carers over the age of 16, who provide at least 35 hours of care a week and are earning under £102 a week after tax. The increase in the minimum wage could see the income of carers increase, albeit marginally, which may then push them over the net earnings threshold that is currently in place and remove their eligibility for the carer’s allowance. It is estimated that the increase could cost a carer more than £60 per week.