The latest budget presented by Chancellor Rachel Reeves has presented a range of financial and social support measures, among them the expansion of the Carer’s Allowance threshold and an investment of £240 million towards services for disabled and long-term sick workers.
These initiatives are designed to support the most vulnerable in the workforce, aiming to ease financial burdens and promote inclusivity within employment. However, it’s important to temper optimism with caution, as we consider how these changes will practically affect the wellbeing of employees and employers alike.
Carer’s Allowance – financial relief for dual responsibilities
The government’s decision to raise the earnings threshold for Carer’s Allowance to £10,000 marks a key moment for carers balancing employment and caregiving. This adjustment means individuals can now earn more without forfeiting the crucial benefits provided by Carer’s Allowance, which currently offers £81.90 per week to those eligible. In real terms, this means more financial stability for those who often face the difficult choice between sustaining an income and providing essential care for loved ones.
Carers often juggle their duties under considerable strain, and this policy shift provides some relief, enabling them to work without the constant worry of losing out on financial support. Yet, while this additional income threshold is a welcome relief, it’s important that we don’t view this initiative through rose-tinted glasses. As Leader of the Opposition Rishi Sunak pointed out in his response, Labour’s budget may fall short of expectations, describing the series of announcements as containing “broken promise after broken promise.”
While the policy supports additional income for carers, the amount provided by Carer’s Allowance itself has not increased. For many carers, the weekly benefit still represents only a fraction of the costs associated with caregiving, and workplace flexibility remains essential for carers to balance both work and personal responsibilities effectively.
Supporting disabled and long-term sick workers
Another highlight of this year’s budget is the £240 million earmarked for health and employment services for disabled and long-term sick workers. This funding aims to create a more inclusive workforce, providing resources that could support mental health initiatives, ergonomic adjustments, and tailored accommodations.
However, while the government’s focus on getting people back into work is encouraging, it is equally important to “examine and stop the flow of people from work into economic inactivity,” as GRiD, the group risk industry body, points out. They highlight that employers can play a significant role in this by providing long-term sick pay, either through self-funding or a group income protection policy. This approach would help support workers’ health and wellbeing, offering early intervention, vocational rehabilitation, and ongoing income for those who may be unable to work long-term due to ill health.
Sunak’s response in Parliament cautioned against overly optimistic views on Labour’s economic strategy, criticising Chancellor Reeves for “unleashing a splurge of borrowing” and “fiddling the fiscal rules” to meet debt targets. His concerns reflect the importance of sustainable investment in health and employment initiatives to avoid diminishing the budget’s long-term impact.
While the £240 million for disabled workers is a step forward, its effectiveness depends on careful, sustainable management. Without this, there’s a risk that these resources may fall short of their intended impact on employee wellbeing, particularly for those needing long-term support.
Building workplaces that support all employees
While these budgetary measures are positive steps toward supporting vulnerable workers, employers must also take an active role in ensuring the wellbeing of those with caregiving responsibilities and disabilities. For carers, workplaces can offer flexible working arrangements, remote work options, or additional leave, allowing them to balance work and caregiving. Similarly, for employees with disabilities, the funding will only be effective if employers enhance accessibility through mental health support and accommodating spaces, translating the budget’s promise into real benefits.
Joanne is the editor for Workplace Wellbeing Professional and has a keen interest in promoting the safety and wellbeing of the global workforce. After earning a bachelor's degree in English literature and media studies, she taught English in China and Vietnam for two years. Before joining Work Well Pro, Joanne worked as a marketing coordinator for luxury property, where her responsibilities included blog writing, photography, and video creation.
