Sun, 06 Apr 2025

Sun, 06 Apr 2025 Boost for carers and pensioners as new tax year starts

The state pension has risen by 4.1% and carers can work more hours will keeping a key benefit.
Millions of people will receive higher state pensions and benefits, with carers among those benefiting from increased earnings thresholds. Carer's allowance will no longer be affected by income earned up to £133 per week, allowing individuals to work more hours without losing their benefit. This change applies to over 1 million carers in the UK. Universal credit for single people under 25 has increased by £5.30 a month, while couples aged over 25 have seen a rise of £10.50. Other benefits, including personal independence payment and disability living allowance, have also risen by 1.7%. The changes aim to address concerns about the impact of rising household bills on low-income families. Stephanie Swann, who cares for her six-year-old son with cerebral palsy, welcomed the increased earning threshold, saying it was "a step in the right direction". However, there remain concerns over individuals being forced to repay carer's allowance after exceeding the earnings threshold by a small amount. A Department for Work and Pensions spokesman acknowledged the importance of carers' contributions. A new right to additional time off work has come into effect for parents caring for babies in neonatal units, allowing them up to 12 weeks of statutory pay. State pensions have risen by 4.1% under the triple-lock mechanism, which matches rises in wages. The changes also include a freeze on income tax thresholds until 2028, potentially drawing more people into higher tax rates.
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