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The Minister of State, Department for Work and Pensions (Chloe Smith)
It is a pleasure to see you in the Chair today, Ms Bardell.
I thank the hon. Member for Kingston upon Hull East (Karl Turner) for securing this important debate and for forgoing the chance to speak in the main Chamber, as he had competing interests. On behalf of his constituents, he has given us an important opportunity to discuss carer’s allowance and the vital role that unpaid carers play. I will leave him some minutes to speak again at the end of the debate.
We have heard a number of thoughtful contributions, including the deep personal experience of the hon. Member for Bolton South East (Yasmin Qureshi); I thank her for sharing that. I thank the hon. Member for Cynon Valley (Beth Winter) for mentioning our former colleague, Hywel Francis, and I am grateful to the two Front Benchers, the hon. Members for Glasgow East (David Linden) and for Lewisham, Deptford (Vicky Foxcroft), for their contributions.
Let me begin by taking up the point made by the hon. Member for Lewisham, Deptford about a carer who was apparently sanctioned for non-attendance while caring. That sounds like a misunderstanding of some kind. A sanction should not be applied where there is good cause for non-attendance and the Department is notified, so I am happy to take up that case after the debate, unless the hon. Lady can clarify the position now.
Vicky Foxcroft
I appreciate the Minister taking up that case afterwards and thank her for doing so, but this happens all the time. I am sure that many other Members present will know of such cases, so I do not think it is an isolated incident.
Chloe Smith
I will turn to the other detailed points raised in the debate shortly, but like other hon. Members who have spoken, I also want to pay tribute to the millions of unpaid carers in this country. The Government certainly recognise and value the vital contributions made by carers every single day in providing care and continuity of support to family and friends, including pensioners and those with disabilities. More than six out of 10 of us may become a carer at some point during our lives and as many as 13 million people may be doing some unpaid care. That has never been more important than during the covid-19 pandemic, when unpaid carers played a vital role in supporting the most vulnerable in our society. I will come to some of the points made in respect of that in a moment.
Like other hon. Members, I see so much of the work that carers do through my own constituency post bag, such as the experiences that a Mr W recently shared with me, as well as through disabled people’s networks. Carers are fortunate enough to have some wonderful advocates, including their MPs and organisations such as Carers UK, which has been mentioned a number of times today. When I met Carers UK earlier this month, I was able to talk about some of the help that the Government provide to unpaid carers.
We recognise that people, including carers, are facing pressures with the cost of living, including higher fuel bills. That is why we are providing support with the cost of living worth £22 billion across this financial year and next. We have also promised to legislate so that employees will be entitled to five days of unpaid care leave per year, and, as hon. Members will know, we are reforming health and adult social care. I am working closely with the Minister for Care and Mental Health, my hon. Friend the Member for Chichester (Gillian Keegan), on that.
David Linden
The Minister mentioned the five-day paid care leave, which I presume will come in the form of an employment Bill. Will she give a cast-iron guarantee that there will be an employment Bill in the Gracious Speech that we expect in May, or are we going to have to wait yet more years for an employment Bill? People cannot wait any longer.
Chloe Smith
The hon. Gentleman tempts me down paths that I am afraid I am unable to go down in this debate, but I look forward very much to working with him and others to make that goal a reality.
We are spending record amounts to support unpaid carers. Real-terms expenditure on carer’s allowance is forecast to be £3.1 billion in 2021-22 and to increase by two fifths by 2026-27, when the Government are expected to spend just under £4.4 billion a year on it.
Patterns of care have changed significantly over the last few decades. People are providing vital unpaid care for relatives and friends in a whole range of circumstances. Nearly 1 million people are now receiving carer’s allowance and the weekly rate will increase to £69.70 in April. Since 2010, it will have increased from £53.90 to £69.70 a week, providing an additional £800 a year in cash for carers through the carer’s allowance. There are additional amounts for carers in universal credit and other benefits.
Barbara Keeley
I am astonished that the Minister can read out those notes with a straight face, given what everybody has said. Most Members here have made the point that a £2 increase is an insult given what we know about what is happening with the cost of living—even just with lateral flow tests. How can she read those figures out and not be ashamed of them?
Chloe Smith
I am sorry if the hon. Lady thought that that was a useful use of the minutes we have left, when I have plenty more to say. She stops me to insult me rather than letting me talk about carers; that is not particularly helpful.
Like other hon. Members, I want to talk about the rate of carer’s allowance. I will start with whether it is high enough. The Government continue to provide financial support to unpaid carers through carer’s allowance, the carer element in universal credit, and other benefits. We have chosen to focus extra support on carers who need it the most. About 360,000 carer households on universal credit can receive nearly £2,000 year through the carer element, and that amount will increase from April 2022. Universal credit is of course a key benefit—indeed, it is the key benefit—for carers on low incomes, on whom we most need to target the support. Indeed, carers in receipt of universal credit do not face the cliff edge identified by the hon. Member for Kingston upon Hull East in opening the debate.
Chloe Smith
I am afraid I need to make progress.
The hon. Member for Salford and Eccles (Rebecca Long Bailey) argued that we need to increase the rate of carer’s allowance even further to reflect the current rate of inflation, rather than last September’s rate of CPI. Of course, the Secretary of State undertakes an annual review of benefits and pensions; and CPI in the year to September, as published by the Office for National Statistics, is the latest figure that the Secretary of State can use to allow sufficient time for the needed legislative and operational changes before new rates can be introduced at the start of the new financial year.
Let me turn to the carer’s allowance earnings limit. Right hon. and hon. Members have mentioned the limit throughout the debate and argued that it ought to be increased. Carer’s allowance has an earnings limit, which permits carers to undertake some part-time work if they are able to do so. This recognises the benefits of staying in touch with the workplace, including greater financial independence and social interaction. In many cases, carers are keen to work, so we want to encourage them to combine some paid work with their caring duties, if they wish to do so and wherever possible. That is why we regularly increase the earnings limit.
The limit for those in receipt of carer’s allowance will increase to £132 net earnings a week from this year, which means that the earnings limit will have increased by about a third since 2010. Many of those who are receiving carer’s allowance and doing some work will also be receiving universal credit. In those cases, the 55% taper rate and any applicable work allowance will help to ensure that people are better off in work, which means more generous treatment in universal credit of earnings above the carer’s allowance earnings limit.
Right hon. and hon. Members have mentioned the increases in fuel bills, which I absolutely recognise. The Government acknowledge that people are facing pressures with the cost of living, including rising fuel and heating costs, and Members will know about the measures announced in the spring statement last week, which build on the existing support that the Government provide and will be worth over £22 billion.
A number of schemes are in place to help with heating costs, depending on carers’ circumstances. They include the winter fuel payment, the cold weather payment and the warm home discount. I recognise the argument made by the hon. Members for Salford and Eccles and for Bolton South East about extending the warm home discount to carers. I think they will know that colleagues in the Department for Business, Energy and Industrial Strategy recently consulted on the scheme and announced that automatic rebates will be extended from those getting the guarantee credit in pension credit to include other low-income households whose homes are fuel inefficient.
The hon. Member for Worsley and Eccles South (Barbara Keeley) and others made the point that it is important that carers apply for all the support that might be available to them. Many working-age carers receive means-tested benefits as well as carer’s allowance, and I have already mentioned universal credit. Pensioner carers may be able to receive pension credit, which includes an additional amount for carers. Very importantly, receiving a means-tested benefit can act as a passport to other support, so if carers are not already receiving a means-tested benefit, I encourage them to look at gov.uk or to seek other advice, to see whether they might be entitled to that.
Karl Turner
Will the Minister clarify the percentage increase that was asked about by my right hon. Friend the Member for Hayes and Harlington (John McDonnell)?
Karl Turner
I think there was a mention of 3.1%, but I am not sure if I heard the Minister properly.
Chloe Smith
The hon. Gentleman will recognise that as the September CPI figure. Yes, I can confirm that the figure is 3.1%.
I want to add a point about the personal independence payment. For some households where caring is taking place, it will be highly relevant. It is extremely relevant to the point that several Members have made about the extra costs that disabled people face. That is recognised, and it is exactly what the personal independence payment is for. Again, I encourage carers to ensure that they or their household look at that.
The hon. Members for Kingston upon Hull East and for Worsley and Eccles South raised points about the end of life. I want to make sure that hon. Members are aware that the Government are improving the so-called special rules for terminal illness and end of life. Two statutory instruments have already been laid and primary legislation will follow to ensure that, across five benefits, that when they are in those very challenging circumstances people can get the support they need earlier.
Some hon. Members mentioned disabled or unwell children. I want to make sure that colleagues are aware of the special educational needs and disabilities review that was published yesterday. Low-income families with seriously ill or disabled people will be further supported through £27.3 million of funding next year, which could help pay for equipment, goods or services that those families might not otherwise be able to afford.
Let me move on to the position for Scotland and Wales. Hon. Members have asked why the Administrations differ in their approach. The UK Government’s focus is to support those carers most in need through universal credit. In Scotland, as mentioned by the hon. Members for North East Fife (Wendy Chamberlain) and for Glasgow East, additional amounts are paid to carers by the Scottish Government through their carer’s allowance supplement, using their powers under devolution and their own resources. That is done regardless of the carer’s means. We think it is a better approach to focus extra support on carers on the lowest incomes, and I have already mentioned how that is done through universal credit.
I acknowledge the desire of the hon. Member for Cynon Valley to expand devolved powers in Wales, as well. I do not have time to engage fully with that point today, but I understand the arguments she makes and I look forward to responding to the Welsh Affairs Committee’s report.
The hon. Member for North East Fife mentioned how unpaid carers had been supported during the pandemic and spoke about the policy on lateral flow tests. I want to ensure that she is aware that my Department worked with the NHS and Public Health England to share data so that unpaid carers had priority access to vaccines. It was very important for different parts of Government to work together to do such things for the benefit of those who needed the vaccinations the most at that time. I will ensure that Ministers in the Department of Health and Social Care are aware of the points raised by the hon. Lady about lateral flow tests.
I will draw my remarks to a conclusion to leave enough time for the hon. Member for Kingston upon Hull East to close his debate. We all agree that society relies on unpaid carers in many ways. They are appreciated and deeply important in their households. We recognise the challenges they face and we are helping carers with the rises in the cost of living, reforming social care and helping carers to stay in work. We are spending record amounts on the carer’s allowance and providing unpaid carers with the help and support that they need and deserve. I am grateful for the range of points that have been made today, all of which will be very helpful in examining how we need to go forward. I hope that the contributions made today will help carers to know that we in this Chamber are thinking of them. Thank you for your chairmanship, Ms Bardell.