What the 2024 Autumn Budget Means For Older Adults and Unpaid Carers

The government has unveiled their 2024 Autumn Budget, with several key callouts for older adults and unpaid carers. We’ve broken down the most important points below, including changes to the Winter Fuel payment, an increase to the Carer’s Allowance earning limit and increases to various benefit rates, including the State Pension.

The Winter Fuel Payment Is No Longer Available To All Pensioners

Previously, the Winter Fuel Payment was available to everyone above the State Pension age (this is currently 66 for men and women).

This annual tax-free benefit aims to help older adults during the winter month. Depending on your personal circumstances, this is worth £200 to £300.

However, Labour has stood by its decision to alter this benefit so it can only be claimed by people who get a means-tested benefit such as Pension Credit, despite calls from many organisations and groups to reverse this decision. It’s estimated that just under 10 million older adults will now miss out on this payment as a result.

Carer’s Allowance Earning Limit Is Increasing

Carer’s Allowance is a benefit worth £81.90 a week for people who provide at least 35 hours of weekly unpaid care for somebody who cannot properly look after themselves.

Right now, the most someone can earn and still be eligible for Carer’s Allowance is £151. Labour has announced that from April 2025, this earning limit will rise from £151 to £196 (+30%), meaning people can now earn over £10,000 annually while claiming this benefit. This is much higher than previous increases (such as the earning limit increasing by just £12 from 2023 to 2024.

£196 is the equivalent of 16 hours of work per week at the National Living Wage, while £151 is the equivalent of just over 13 hours of work.

Research from Carers UK shows that this change will benefit a large number of carers. Right now, around 175,000 unpaid carers claim Carer’s Allowance while also earning. 40% of carers find the earning limit difficult and have given up work as a result, while 62% said they want to work more, but can’t because of the earning restrictions.

The State Pension Triple Lock Will Remain In Place

The State Pension triple lock will remain in place. This is the government’s guarantee that the State Pension will grow each year in line with whichever of the following is the highest:

• Average wage growth
• Consumer price inflation
• 2.5% (if both of the above figures are lower than this)

The State Pension Will Increase By 4.1%

The State Pension is set to increase by 4.1% in April 2025, based on average wage growth:

• Full new State Pension - From £221.20 to £230.30 a week (an increase of £9.10 a week, £39.43 a month and £473.20 a year). This pension will now be worth £11,975.60 a year

• Full basic State Pension - From £169.50 to £176.45 a week (an increase of £6.95 a week, £30.12 a month and £361.40 a year). This pension will now be worth £9,175.40 a year

Many Other Benefits Will Increase By 1.7%

Labour has announced that a number of Department for Work and Pensions (DWP) benefits will increase by 1.7% in April 2025. This includes benefits such as Attendance Allowance and Personal Independence Payment (PIP), both aimed at adults living with a disability or medical condition.

This increase is based on the Consumer Price Index (CPI) inflation rate which rose by 1.7%. This inflation rate is the lowest seen in three and a half years. As a comparison, many benefit rates rose by 6.7% for 2024/2025.

This 1.7% increase means many benefits will increase by very small amounts, just a few pounds per week in some cases. For example, Attendance Allowance (which is aimed at adults above the State Pension age) at the higher rate will increase from £108.55 to around £110.40 per week.

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