Change to earnings limit for carers in Scotland

More unpaid carers in Scotland could benefit from financial support as a key change in eligibility rules comes into effect from 6 April 2025.

The earnings limit for Carer Support Payment will increase from £151 to £196 a week. This means that a carer can earn £45 more a week, after tax, National Insurance and certain expenses, and be eligible for the payment.

The change could mean carers already receiving Carer Support Payment will be able to undertake more paid work and still receive the payment. In addition, many carers earning a take home pay of £10,192 or less a year, who were previously unable to access the additional support could now be eligible.

To receive Carer Support Payment of £83.30 a week, carers also need to be providing 35 hours or more of care a week to someone who receives a qualifying disability benefit.

Carer Support Payment is replacing Carer's Allowance in Scotland, delivered by the UK Government's Department for Work and Pensions (DWP).

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.

“The Scottish Government remains committed to ensuring everyone gets the financial support they're entitled to, despite the UK Government's recent announcement on changes to welfare.”

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 new threshold amount applies once a carer has taken away deductions for tax, national insurance and half of any pension contribution. Carers may also be able to deduct some of the costs to provide care whilst you are working.

We would encourage all carers in employment or who are thinking about returning to employment to find out more about Carer Support Payment and the earnings threshold from Social Security Scotland or their local carers centre or advice agency.”

Background

• Carer Support Payment is a payment of £83.30 a week from 6 April 2025 and is available to carers who are aged 16 or over and who provide unpaid care for 35 hours or more a week to someone who receives a qualifying disability benefit. Carers need to earn £151 a week (increasing to £196 a week from 6 April 2025) or less after tax, National Insurance and certain expenses. The earnings limit for carers in Scotland who are getting Carer's Allowance will also increase to £196. Carers getting Carer's Allowance in Scotland will have their benefits transferred automatically to Carer Support Payment. This process is due to complete this spring.
  
  
• Improvements made to Carer Support Payment includes making the earnings rules clearer, assessing eligibility based on average earnings where carers have earnings that vary to provide more stable support, and using information from the HMRC and planned reviews to check and track earnings. Find out more at If you work - mygov.scot Many carers in education are also eligible for Carer Support Payment. Find out more at If you study - mygov.scot

Carer's Allowance Supplement is an extra payment for eligible unpaid carers who are getting Carer Support Payment or Carer's Allowance on two qualifying dates. The payment is made twice a year and is unique to Scotland. Each payment of Carer's Allowance Supplement in 2025 will be £293.50. It is paid automatically without the need to apply.  

Young Carer Grant  is available for carers aged 16, 17 or 18 who provide support for an average of 16 hours a week to someone receiving a qualifying disability benefit. It is a yearly payment of £390.25 from 1 April 2025 and the money can be spent on whatever the young person wants.  

Information on other support for carers, such as wider financial support, wellbeing support and short breaks from caring, can be found at Help if you're a carer - mygov.scot