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Budget Shake-up Expected to Bring Major DWP Benefit Changes for Households
The taper would cut Carer’s Allowance by £1 for every extra £1 earned, ending the current rule that strips the full benefit.
On Wednesday, Chancellor John Healey will present his first budget, expected to replace the Carer's Allowance 'cliff edge' with a taper where benefits fall by £1 for every extra £1 earned above the limit.
Currently, 1.4 million claimants face a sudden loss of support if earnings exceed set limits, a practice campaigners have long described as a scandal affecting unpaid carers.
The Budget includes a £432 million boost to tackle homelessness disclosed on Monday, alongside parental pay extensions for more than 150,000 parents annually and tariff cuts on popular food items.
Prime Minister Andy Burnham stated the government will 'go further to give families and businesses the breathing space they need' through these 'everyday fixes' at the Budget.
Further reports indicate the national living wage is expected to rise by nearly 4% to £13.20 an hour, while Healey reportedly plans to freeze fuel duty at 52p per litre for the first time in 16 years.