In a significant move to support unpaid carers, the Scottish Government has announced a crucial change in the earnings limit for Carer Support Payment, effective from April 6, 2025. This adjustment will enable more carers to balance their caring responsibilities with paid employment, providing them with much-needed financial stability. The earnings limit will increase from £151 to £196 per week, allowing carers to earn an additional £45 after deductions for tax, National Insurance, and certain expenses.
Carer Support Payment is a vital benefit introduced by the Scottish Government to replace Carer’s Allowance in Scotland. It provides financial support to unpaid carers who dedicate at least 35 hours a week to caring for someone receiving a qualifying disability benefit. This payment is part of a broader effort to recognize the invaluable contributions of carers and support them in their roles.
Social Justice Secretary, Shirley-Anne Somerville said, “The Scottish Government proposed back in 2022 to raise the earnings limit for Carer Support Payment once fully launched. This was on the back of strong feedback from carers and support organisations that the previous limit was set too low. The increase puts the earnings limit at a level which equates to 16 hours at the national living wage. Alongside other improvements we have made, this should help more carers to balance paid work with caring and provide more stable financial support.”
Fiona Collie, Head of Public Affairs and Communication 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 increase in the earnings limit is a direct response to feedback from carers and support organizations, who have long advocated for a more realistic threshold that aligns with the National Living Wage. This change means that carers can now work up to 16 hours a week at the National Living Wage and still be eligible for Carer Support Payment. This adjustment is expected to benefit thousands of carers who were previously unable to access the payment due to their earnings exceeding the threshold.
Increased Earning Potential: The new earnings limit allows carers to earn more from paid employment, enhancing their financial stability and reducing the pressure of balancing work and care responsibilities.
Broader Eligibility: Many carers who were previously ineligible due to their earnings can now apply for Carer Support Payment. This includes those earning a take-home pay of £10,192 or less per year.
Simplified Earnings Rules: The Scottish Government has also made the earnings rules clearer and more flexible, allowing for assessments based on average earnings for carers with variable income. This provides more stable support and reduces administrative complexities.
Education and Employment Opportunities: Unlike Carer’s Allowance, Carer Support Payment is available to some carers in education, including full-time students aged 20 or over and those in advanced or higher education. This opens up opportunities for carers to pursue education or return to employment while continuing to care.
In addition to Carer Support Payment, Scotland offers other forms of support for carers:
Carer’s Allowance Supplement: An extra payment made twice a year to eligible carers receiving Carer Support Payment or Carer’s Allowance. Each payment in 2025 will be £293.50.
Young Carer Grant: A yearly payment of £390.25 available to carers aged 16, 17, or 18 who provide support for an average of 16 hours a week.
Wider Support: Carers can access broader financial support, wellbeing services, and short breaks from caring through various initiatives.
The increase in the earnings limit for Carer Support Payment marks a significant step forward in supporting Scotland’s unpaid carers. By enabling more carers to balance work and care, this change not only enhances their financial stability but also acknowledges the critical role they play in society. As the Scottish Government continues to evolve its support systems, it is clear that the welfare of carers remains a priority, ensuring they receive the recognition and financial support they deserve.
This change reflects a broader commitment to equality and fairness, ensuring that carers across Scotland can access the support they need to thrive in their roles. As the Scottish Government continues to refine its policies, it is evident that the welfare of carers will remain at the forefront of social justice initiatives.
