The carer's allowance is a social assistance scheme which provides an income maintenance payment to people providing elderly or incapacitated pensioners with full-time care and attention and whose incomes fall below certain limits.
The allowance was introduced in 1990 and has been improved and expanded progressively over the years. For example, in 1994 the means test was eased with the introduction of a weekly disregard of £100 in respect of the earnings of the carer's spouse. This amount was increased to £150 a week this year and the scheme was further expanded with the inclusion of carers who look after recipients of occupational pensions.