The level of carer's allowance is reviewed annually and up-rated in April, in line with the September Retail Prices Index. This year, however, the September Retail Prices Index was negative so, as announced in the uprating statement, to help carers during the early stages of economic recovery, we are proposing bringing forward a 1.5 per cent. increase. This means that the weekly rate of carer's allowance will be increased from £53.10 to £53.90 in April 2010. The rate will be increased again in 2011 to make up the difference with the Retail Prices Index for September 2010, thus preserving the real terms increase in future years.
The carer's allowance weekly earnings limit is being increased from £95 to £100 from 12 April 2010.