As the new tax year begins, millions of carers and pensioners are set to receive a boost in their benefits, with increases in state pension and universal credit. With these changes, working carers can now earn more from their job while still claiming carer’s allowance.
Boost for Carers and Pensioners as New Tax Year Starts
The state pension is a government-funded benefit provided to eligible citizens in the UK.
It's designed to provide a basic income for individuals who have made national insurance contributions throughout their working lives.
To be eligible, one must have at least 10 years of qualifying contributions.
The full state pension amount varies depending on individual circumstances, but it typically ranges between £185 and £239 per week.
Eligible recipients can expect to receive the first payment in the month following their 66th birthday.
Increased Benefits for Carers
The new tax year has brought welcome news for carers, who will now be able to work longer without losing their key payment. The state pension and benefits are rising for millions of people, with carers among those receiving a 1.7% increase in their benefits. This means they can earn more from their job while still claiming carer’s allowance.
A career is a long-term, planned sequence of work-related activities through which an individual advances in their profession.
It involves acquiring skills, knowledge, and experience to achieve specific goals and objectives.
According to the Bureau of Labor Statistics, there are over 800 occupations in the United States alone.
Careers can be categorized into various fields such as business, healthcare, technology, and education.
Employees often change careers due to factors like job satisfaction, salary, work-life balance, and personal growth.
The standard allowance of universal credit, the most common benefit, has increased by £5.30 a month to about £317 for a single person under 25 and £10.50 to £628 a month for a couple over 25. Other benefits rising at the same rate include all main disability benefits, such as personal independence payment, attendance allowance, and disability living allowance.
For Stephanie Swann, who cares for her six-year-old disabled son, Joseph, with cerebral palsy, this increase is a step in the right direction. She can now work more hours without losing the benefit being taken away. ‘Going to work is really important, it’s a sense of identity and purpose,’ she said. However, due to the admin required for her son’s care, she will only be able to add two or three more hours to her weekly work.
New Tax Year Measures
The changes mean that working carers can earn up to £196 per week after certain deductions, up from £151, while keeping the allowance. The allowance itself will rise to £83.30 per week. This increase is expected to benefit an additional 60,000 carers by 2029.
Additionally, a new right for additional time off work has come into force for thousands of families whose babies need to be cared for in neonatal units. Eligible parents can now take up to 12 weeks of leave with statutory pay on top of any other leave they may be entitled to.
A neonatal unit, also known as a NICU (Neonatal Intensive Care Unit), is a specialized department in a hospital that provides intensive care to newborn babies who are premature, critically ill, or require close monitoring.
These units have advanced life-support equipment and trained healthcare professionals to provide around-the-clock care.
According to the World Health Organization (WHO), over 15 million babies worldwide are born prematurely each year, highlighting the need for accessible neonatal care.
State Pension Increase
The state pension has gone up by 4.1%, to match rising wages under the triple-lock. The increase means it is worth £230.25 a week for those who reached state pension age after April 2016, a rise of £472 a year. For those who reached state pension age before April 2016, the full, old basic state pension will increase by £363 a year to £176.45 a week.
The new tax year also sees another freeze in income tax thresholds, known as fiscal drag. This means that while income tax rates have not risen, the income levels at which they are paid have been frozen until 2028.
