The new Carer’s Allowance Earnings Limit comes into effect today, meaning carers can now earn up to £196 per week as compared to £151 previously.
In the following comment, Nicola Sinclair from The People’s Pension, tells us not only why this is an important step forward for carers, but also why more still needs to be done to support parents of disabled children and enable them to secure better retirement outcomes.
Nicola Sinclair, Head of Responsible Business at The People’s Pension, said: “Carers play a vital role in society, yet many face significant financial strain due to the impact of their caregiving responsibilities on their ability to work and save for the future. The new Carer’s Allowance Earnings Limit coming into effect will provide much-needed relief for those balancing paid work with unpaid care.
“However, for parents caring for children with long-term health conditions, the financial challenges remain particularly severe. Our research shows that parents of disabled children will have £138,000 less in their pensions, leaving them at greater financial insecurity in later life. With 64% of parents of disabled children worried about their future finances, further action is needed.
“Tackling this issue requires not just financial measures but also cultural change- combating stigma, fostering more inclusive workplaces, and ensuring parent carers have the flexibility to remain in or return to employment. Stronger financial planning resources and more robust support systems are crucial to helping this group achieve long-term financial security and better retirement outcomes.”
