Carer’s Allowance

Baroness Keeley Excerpts

Monday 22nd April 2024 Westminster Hall

[Barbara Keeley (Worsley and Eccles South) (Lab)]

It is a pleasure to speak in this important debate with you in the Chair, Mrs Cummins, and I congratulate my hon. Friend the Member for Neath (Christina Rees) on leading it.

For years, many charities, campaigners and carers have called for wide-ranging reform of carer’s allowance. The petition that we are debating focuses specifically on how much carer’s allowance should offer carers, so I will begin my contribution by addressing the financial pressures that carers face.

Carers UK estimates that over a quarter of carers live in poverty, which rises to nearly half of those who care for someone for more than 35 hours a week. Often, people in receipt of carer’s allowance face particularly difficult financial situations. The poverty rate for people in receipt of carer’s allowance has doubled in the last decade and a survey by Carers UK shows that 45% of people receiving carer’s allowance struggle to make ends meet, which is a significant increase on the previous year.

The causes of financial difficulty for carers are frequently linked to their caring responsibilities. Of course, carers face additional costs, which are unavoidable, to keep the person whom they care for safe. Such costs can include vital but high-energy equipment, the costs of additional laundry and bathing needs, and transport costs for visits to medical appointments.

As we have already heard in the debate, carers also have a limited ability to earn an income. If they are in receipt of carer’s allowance, they can earn only £151 before losing that benefit. This month, the earnings threshold for claiming carer’s allowance increased below the national living wage, which means that carers on the lowest wages will have to cut back their hours to just over 13 hours a week or risk losing the benefit. For some, this will be the equivalent of losing 13 days of work a year, which is a substantial loss. In addition, as we have already heard but it bears repeating, there is an issue for carers in full-time education—young carers—because they lose eligibility for carer’s allowance when they study for more than 21 hours a week. Therefore, many young people are excluded from support.

Those eligibility requirements and others limit the support that carers can receive through carer’s allowance. Most importantly, however, around 34% of carers in receipt of carer’s allowance are still in poverty. Clearly, carer’s allowance is failing to give enough financial support to the people who provide unpaid care to others. It is ridiculous for the Government to claim in response to the petition that they

“recognise the invaluable contribution that unpaid and family carers make”,

given that so many carers clearly do not receive the support they need.

The petition that we are debating today focuses on the amount available for carers through carer’s allowance, but there are other issues that warrant our concern. A particularly worrying problem that we have already heard about is the recent reporting of overpayments of carer’s allowance and the subsequent repayment penalties. As we have heard, poor systems or poor processes at the Department of Work and Pensions have resulted in 145,000 current cases of overpayments to unpaid carers, with 12,000 of those being for sums greater than £5,000. As has been reported in the press recently, that has resulted in thousands of carers running up huge debts, being given criminal records, and being forced to sell their own homes when chased by the DWP over small mistakes that officials could have spotted years earlier. For example, George Henderson, the carer of his adult son John, who has a learning disability, was overpaid £110 and ended up being prosecuted for benefit fraud by the Department for Work and Pensions, despite the Department admitting that his was an innocent mistake. He was forced to sell his house and threatened monthly with jail. Then he tried to take his own life. Mr Henderson told The Mirror:

“One night I’d had a drink and I put a noose up in the loft…My girlfriend rang the Crisis team and I was under them for four months. They wouldn’t let me live alone. I lost four stone as I couldn’t eat, I look at photos from that time and you can see my ribcage.”

The repercussions of that time continue to affect Mr Henderson, and he is now waiting to undergo therapy for post-traumatic stress disorder. Sadly, there are many other carers like Mr Henderson. One carer told Carers UK:

“The whole process had my wife so stressed out that she at several points contemplated suicide. She couldn’t see an end to it and as it turned out we didn’t end up owing the DWP anything.”

Carers have described suffering an avalanche of utter stress due to the Government’s claiming back of these benefits. This is not about mistakes or misunderstandings by carers, as we have heard; this is about administrative failures at the DWP and harsh penalties for people whom the Government should be trying to support. There must be a change to the processing around carer’s allowance to alleviate the acute distress and financial hardship that overpayments can cause; otherwise, we will see many more serious headlines. It is reported that one in three unpaid carers has thought about killing themselves due to the emotional and financial strain they are under. That is disturbing. It is also disturbing that it is not known how many carers have already been driven to suicide, because caring status is not part of the data collected after such a death.

It is unacceptable, in my view, that the Government have let this mismanagement of carer’s allowance processes go on for so long. Both the Work and Pensions Committee and the National Audit Office warned of this situation five years ago, yet the number of overpayments today remains just as high. I am glad that Labour has committed to reviewing the system of carer’s allowance and would look to reform DWP policy on carer’s allowance but now that these issues are really being exposed, carers should not have to wait for a general election to see action. The Government must sort out the mess urgently so that unpaid carers are no longer penalised for the vital care they offer.

--- Later in debate ---

[Mims Davies]

Yes, indeed. I was supportive of that myself, attending where possible to support that legislation going through. The Government absolutely welcome the cross-party work the hon. Member for North East Fife (Wendy Chamberlain) did piloting that, and congratulations to her.

On the specific subject of the debate, we are spending record amounts to support unpaid carers. Real-terms expenditure for carer’s allowance is forecast to be £4.1 billion in 2024-25 and by 2028-29 the Government are forecast to spend over £4.5 billion a year on carer’s allowance. We spend another £685 million to support carers receiving universal credit through the carer element.

As mentioned today, patterns of care have changed significantly over the past decade. People are providing vital unpaid care to relatives and friends in a whole range of circumstances that work for all concerned, but I also recognise that none of this is easy. Nearly one million people now receive carer’s allowance, and the weekly rate increased this month to £81.90. That means that since 2010 it has increased from £53.90 to £81.90 a week, providing an additional £1,500 a year to carers through the carer’s allowance compared with 2010. Of course, there are additional amounts for carers in universal credit and other ways forward, and it is important that those watching and those who maybe have not had this conversation are aware of those and come forward to get the support they need. That also can be through the household support fund. We know that unexpected outgoings happen, and people should reach out through their local authority and through Barnett consequentials. I know that that has been an important support mechanism for carers.

The crux of the petition we have been debating is that we should turn carer’s allowance into a carer’s wage. It is important to emphasise that the carer’s allowance is not intended to be a replacement for a wage or a payment for services of caring, hence some of the issues rightly raised today. It is therefore not directly comparable to either the national minimum wage or the national living wage. The principal purpose of the carer’s allowance as it stands, and under successive Governments since 1976, is to provide a measure of financial support and recognition for people who are not able to work full time because of their caring responsibilities. I reiterate that I welcome the debate and the opportunity to review and understand these issues. Successive Governments have supported carers through allowances and benefits, as well as wider cross-Government actions, rather than paying people directly for the tasks they undertake in the way that an employer would.

[Barbara Keeley]

I want to raise something that has not been raised in the debate and ask the Minister a question. She refuted the point that the Government do not recognise the contribution of carers, but many carers believe that the Government should have, and are missing, a national carers strategy. Such a strategy was launched by the Labour Government, with the backing of our former Prime Ministers, and was ditched by the coalition Government after 2010. Much of what we have covered is about a range of issues that would be better solved with a cross-party ministerial commitment, going up to prime ministerial level, on a national carers strategy. An excellent campaigner, Katy Styles, who has been mentioned in this debate, runs the We Care Campaign for that very thing. It is a real black hole in the Government’s support for carers that there is no national carers strategy. Will the Minister address that?

[Mims Davies]

I thank the hon. Lady for making that point. The right hon. Member for East Ham (Sir Stephen Timms) took us back nearly two decades to 2008, the year that he was Minister of State in the Department holding the welfare reform portfolio. This is not new; this is challenging. The hon. Lady makes an important point, to which I will try to reply in my wider remarks. When we discuss this issue at the Select Committee, I am keen to get to the crux of all the challenges, but that is too wide a subject for this debate.

The hon. Member for Lewisham, Deptford (Vicky Foxcroft) talked about benefit delays and the challenge of the long-standing principle that the carer’s allowance can being awarded only once a decision has been made to trigger a disability benefit to the person being cared for. Carer’s allowance can be backdated, however, to the date from which the disability is payable. I believe about 100,000 people are on PIP and the carer’s allowance. I hope that goes some way to answering her questions.

The hon. Member for Motherwell and Wishaw (Marion Fellows), with her characteristic approach, raised the work being done in Scotland. We will look fully and with interest at the evaluation of the changes that the Scottish Government make. At the DWP, we are supporting those changes, so we will engage on them. That also goes to the earlier point about looking and learning, which is exactly what we should do.

Many hon. Members spoke about young adult carers and the impact of study. We are engaging with the Department for Education and the cross-Government working group is meeting again soon. It is important that carers maintain links with the education system, so that they can receive part-time education and a carer’s allowance. We rightly recognise the aspirations of young carers to not only complete their studies and build a successful career, but be there for their loved one.

That is true not just for young carers: we need to ensure that carers understand that, while caring, they have developed amazing skills that an employer will find invaluable, such as managing finances, the resilience that has been spoken about today, dealing with crisis, organisation and planning, and that level of interpersonal skills. We need to ensure that our young people in particular get the financial support that they need while studying, so they can rightly progress into the career that they want.

On the latest data on overpayments, our most recent statistics are that carer’s allowance overpayments relating to earnings and employment represent about 2.1% of our £3.3 billion of carer’s allowance expenditure, which is approximately £70 million. I welcome the opportunity to discuss that further with the Select Committee later this week.

Household Support Fund

Baroness Keeley Excerpts

Wednesday 31st January 2024 Westminster Hall

[Barbara Keeley (Worsley and Eccles South) (Lab)]

It is a pleasure to speak in this debate with you in the Chair, Mr Hosie. I thank my right hon. Friend the Member for East Ham (Sir Stephen Timms) for securing this debate on such an important issue.

In Salford City Council, the household support fund is run by the excellent Salford Assist service. Last year, nearly 19,000 people accessed emergency funds. As in the example given by my right hon. Friend, the fund also provided vouchers to ensure that children entitled to free school meals had food in the school holidays.

I am deeply concerned that the future of the fund is not secure past the end of March. Salford City Council has had its funding cut by £245 million since 2010. There are literally no funds to fill the gap that ending the household support fund would leave. Eighty-four per cent of councils that responded to a recent Local Government Association survey said that hardship had increased in their area, and in Salford, demand for the fund has increased by 86% in the last year.

Carers are particularly hard hit by the cost of living crisis; according to the Joseph Rowntree Foundation, a third of them live in poverty. Carers Trust highlighted that the household support fund has enabled carer organisations to work with local councils to ensure that carers who are in need of financial help have access to the household support fund.

I will give a couple of examples of how the fund has been used to support my constituents. One constituent had lost everything when she fled a domestic violence situation with her two small children. She was offered social housing but it was unfurnished. The household support fund was essential in helping to provide basic furnishings for her new home.

Another constituent contacted me when a change of job meant she was put on an emergency tax rate. She was living in private rented accommodation with her partner and two children, who both have long-term health conditions. The children’s health issues meant that her partner had to stop work to look after them, and the family was finding it more and more difficult to meet the cost of their rent. She said:

“I have lived in Salford all my life, paid my contributions, provided for my children, maintained a home, but right now with all factors in play, this is becoming more and more unachievable as time passes.”

With the energy crisis and the cost of living crisis, I am contacted by so many people who are in hardship due to rent increases or sudden changes to their salary or benefits. That is where the support of the household support fund is vital. This is not the time to remove that support. I and my hon. Friends the Members for Salford and Eccles (Rebecca Long Bailey), who is here, and for Blackley and Broughton (Graham Stringer) have raised the matter with the Secretary of State and asked him to meet us and a cross-party group of elected councillors to raise our serious concerns about the potential impact of losing the household support fund in Salford. I hope the meeting can be arranged soon and I hope we get a commitment from the Government to continue this vital fund.

Cost of Living: Financial Support for Disabled People

Baroness Keeley Excerpts

Monday 22nd May 2023 Westminster Hall

[Barbara Keeley (Worsley and Eccles South) (Lab)]

It is a pleasure to speak with you in the Chair, Sir Robert. I congratulate my hon. Friend the Member for Battersea (Marsha De Cordova) on leading this important debate. We know that the serious implications of rising prices for fuel, transport and food have fallen much harder on some people. People with disabilities face a higher risk of poverty. The poverty rate for individuals who live in families where someone is disabled is 28%—nine percentage points more than those who live in families where no one is disabled. They are also less likely to be able to make savings on their bills for reasons related to their disability. We have heard a great deal about how the size of bills impacts many people.

I will talk about one of the petitioners: Katy Styles, who is here today. She is an unpaid carer for her husband who has motor neurone disease, and she is a campaigner for improved support for carers. She put it like this:

“It’s not a question of putting on an extra jumper for us. When someone has a muscle wasting disease their ability to stay warm is compromised, so homes need to be heated for longer and at higher temperatures. Not heating your home can lead to chest infections and in turn this can lead to a stay in hospital”.

We are focusing an awful lot on households with someone with a disability, but the extra costs for heating are borne by not only the person with a disability but their unpaid carers. Well over a quarter of all unpaid carers are living in poverty, and research from Carers UK found that more than three quarters of carers said that the rising cost of living is one of the main challenges that they would face in 2023, which is hardly surprising.

[Rosie Duffield (Canterbury) (Lab)]

I thank my hon. Friend for mentioning my fantastic constituent Katy Styles. Does my hon. Friend agree that campaigns such as We Care and people such as Katy make a real difference to us because they talk about the impact on real lives, and how the decisions that we make here affect them on a daily basis? It is not just statistics that we receive from charities and others: we know how each decision that we make here impacts on people’s real lives.

[Barbara Keeley]

I very much agree. It is good that Katy Styles is here today, because I have learned a lot from her about the role of carers. It is something that I care deeply about. Like her, I would like to see improved support for carers.

Returning to the point about maintaining higher temperatures in the home, people with disabilities, as we have heard, are also being hit with the increased costs of vital high-energy equipment, additional laundry and bathing needs, and transport for visits to medical appointments, which can be very costly. As my hon. Friend the Member for Battersea said, the charity Scope has found that, on average, households with at least one disabled adult or child need an additional £975 a month to have the same standard of living as households without somebody with a disability. In fact, those extra costs—she gave this figure too—rise to £1,122 a month after accounting for inflation. In this debate, we are throwing around the amounts of £150 and £650, but we should think about those figures, because £150 is nowhere near the increased costs.

The petition asked for disabled people and unpaid carers to be included in the one-off £650 cost of living support payment. We should reflect on the fact that unpaid carers are more likely to live in poverty than those without caring responsibilities: 29% compared with 20%. The Government responded to both petitions for today’s debate stating that 6 million people in receipt of a qualifying disability benefit would receive a £150 payment last September, but only those in receipt of a qualifying benefit would receive the £650 payment. I understand that that excluded 568,000 personal independence payment and disability living allowance claimants and 523,000 carer’s allowance claimants. Carers such as Katy Styles and the We Care Campaign argue that although the one-off £150 payment was welcome—as discussed earlier, any extra amount is welcome—given the additional energy costs that disabled people and their families are bearing, it was completely inadequate in the context of the ongoing cost of living crisis. We have all seen our bills: £150 hardly goes anywhere. The We Care Campaign recommends that the Government introduce a social tariff for energy that discounts energy bills for those most in need, automatically enrols eligible households and is mandatory for all suppliers, as advocated by the charities Age UK and Scope.

I am afraid I will not be able to get into all the ins and outs of the argument we heard earlier from the hon. Member for Blackpool North and Cleveleys (Paul Maynard). To a certain extent, I disagree with him: it does not matter how many hours Ofgem spends on this issue. Ofgem should be spending time on it, because it is vital that we have a solution.

I want to talk a little about the work by Age UK. Research by Age UK found that cost of living pressures this winter led to more than half of older people cutting back on heat and power, and more than a quarter feeling too cold at home most or all of the time. Around 800,000 older people had left their home to seek warmth in a public space, such as a shopping centre or library. I heard from older constituents who were using their free bus passes to ride around in buses during the day, just to keep warm. That is a scandal. It is also not an option for some people, because people with disabilities and their carers will not be hopping on and off different buses just to try to keep and warm.

I turn to eligibility for the warm home discount, which is important. The We Care Campaign recommends that the Government extend eligibility for the warm home discount to include people with disabilities and unpaid carers. The warm home discount was changed by the Government this winter, but it was not extended to include people with disabilities and unpaid carers; in fact, quite the opposite. Money-saving expert Martin Lewis estimated that 290,000 existing claimants who have disabilities and who claim only personal independence payment, attendance allowance or disability living allowance, which are not means-tested, will no longer get the warm home discount.

As a constituency MP, my experience of the changes made by the Government is of being contacted by constituents who formerly received the warm home discount but found that they were no longer eligible. In most cases, the reason given by the Government was that the discount is now targeted on properties that have a high energy cost score based on their characteristics. In my experience, however, some newer properties can be cold and difficult to heat, so we cannot just base it on the age of a property. I understand that the procedure involved using Valuation Agency-set characteristics and then pushing them through an algorithm, but Martin Lewis has shown that that is mistaken.

I say to the Minister that I know from my experience that some people on very low incomes have been denied the warm home discount this winter. I feel that the changes are wrong, and I urge the Government to look at this issue again. It is time that there was extra support for people with a disability and their unpaid carers to help them cope with the unprecedented financial pressures due to the energy bill crisis and the cost of living crisis, and I hope the Government will think again after this debate.

--- Later in debate ---

[Tom Pursglove]

The Secretary of State and I, and other Ministers in the Department, have been very willing to try to provide more information to the House. The hon. Lady shakes her head, but that is not right: we have come forward, for example, around the structural reforms in the White Paper. The decision that I have made within the Department, because I think that it is important for Parliament to have this information, is to provide a significant statistical release around it so that colleagues on both sides can look at the reforms and reach informed decisions when it comes to votes on the specifics of the policy. There are good reasons for the policies that we intend to pursue, and that statistical release will allow colleagues to form their judgments. I will happily take away her specific request around publication.

We provide significant statistical releases as a Department, as well as reports that are put into the public domain at their conclusion. We are in the early stages of that work, but I am happy to look at it through that lens. We provide information to support parliamentary debate and to support those we work with to get packages of support right, and it is not unhelpful, wherever possible, to provide that information in a way that is accessible beyond the Department.

The disability unit is also seeking to understand and evidence the full impact of the current cost of living on disabled people across a range of sectors. That work is ongoing. There is good dialogue and engagement with disabled people and their representative groups about it, so that we can look at the situation in its totality, understand the interventions that we have made to date and understand the needs that exist. That is relevant to some of what I will go on to say about the other points that were raised in the debate.

Let me turn to energy costs specifically. It was helpful that the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Derby North (Amanda Solloway), was here, albeit for a short time. She heard some of the debate, and I will happily relay to her the contributions that were made, because of course the Department for Energy Security and Net Zero leads on energy policy. Many hon. Members understandably referenced energy costs, particularly in relation to the cost of equipment. The Government supported families across the UK last winter through the energy price guarantee, which places a limit on the price that households pay per unit of gas or electricity. As announced at the spring Budget, households continue to be supported throughout the spring with the extension of EPG at £2,500 per year for the average household until June 2023. That will give the average British family an average saving of £160 per household throughout this period. Support is also provided through cold weather payments and the warm home discount.

I want to touch, as I did last week, on the priority services register, which is run by energy suppliers. It offers additional free services to people who are of pensionable age, are registered disabled, have a hearing or visual impairment, or have long-term ill health. The register helps to ensure that people in vulnerable situations can access extra help when needed, such as when there is a power cut.

[Barbara Keeley]

I wonder whether the Minister will say more about the warm home discount, which many of us raised on behalf of people who found that they could not get it, including people who had the discount before: I felt that that was very harsh this winter. It is unacceptable that people were excluded from it because of assumed characteristics of their bills. We had quite a long exposé of various ideas about how to calculate it, but I hope that the Minister will admit that the scheme that he adopted is pretty crude. I know that it has left people on very low incomes in cold homes, and it should be looked at again.

[Tom Pursglove]

Again, I am happy to deal directly with that point, but I want to touch on the longer-term thinking around energy costs, which is led by the Department for Energy Security and Net Zero.

--- Later in debate ---

[Tom Pursglove]

I entirely accept that, and I do not think that I have suggested otherwise, but of course where we can help with people’s energy costs in the whole, we should do that. It is right that as a Government we do our bit to try to help, through those schemes, to provide that insulation support, which inevitably assists with some of those challenging costs that we are dealing with through the wider support that I have described.

We plan to lay legislation by the summer to take forward those measures that I have just set out. Energy efficiency measures in the fabric of our buildings, such as loft and cavity wall insulation, will lead to less demand on the electricity and gas grids, which in turn could help us to mitigate the impact of high and volatile international gas prices. This could also reduce energy bills for consumers, as well as helping vulnerable households out of fuel poverty.

Finally, I wanted to say something about the White Paper reforms that the Government proposed six weeks or so ago. It is absolutely right that we unlock the potential of those who wish to work and to do that with the right support. I mention this issue because there have been a few comments about it and I was able to say that we will be providing that statistical release, which I think will give colour to those reforms and allow people to make judgments about them and understand the rationale behind the direction of our proposals.

However, I regularly hear from disabled people who would like the opportunity to work, but that structural barrier within the system—that worry, or jeopardy, about trying work and it not working out, and then having to go through reapplication and reassessment processes—just cannot be right. Undoubtedly, though, that is getting in the way of so many people unlocking their potential and taking on work, if that is something they want to do.

The hon. Member for Strangford (Jim Shannon) touched on opportunities for part-time work. Those are exactly the sort of opportunities that we want to unlock for people. Getting rid of the jeopardy that people feel is in the system and, undoubtedly, that work opportunity will help with households’ resilience when it comes to the costs that they experience more generally.

The hon. Gentleman asked specifically what sort of support we are putting in place around that. For example, there was the announcement that the Chancellor made around universal support. The pioneers for that are the individual placement and support in primary care. We know that works; it has a 68% success rate with the supported employment model of identifying an employment opportunity that is right for someone, supporting them into that role and then helping them to retain it.

Schemes such as Access to Work Plus are also exciting and provide great opportunities. We are currently evaluating some of our initial testing of that scheme, but it is about crafting a job role and working with an employer that is keen to take on a disabled person, ensuring they are able to unlock that opportunity in a way that is right for that individual. It is about working with them on a tailored, personalised basis, which is exactly the basis that I am determined we will progress the White Paper reforms on. The overarching sentiment, and the fundamental safety net, is that we would never ask anyone to do something that is inappropriate for them.

Alongside those measures, we also want a better journey through the benefits system for people who need support. I am not complacent about that. There have been contributions today that touched on PIP journey times, and I can confirm that they are down to 14 weeks. That is where we wanted to get to. Previously, people were experiencing unacceptable waits. I am also asking officials to stretch and see what more we can do to take that further and get certainty for people as early in that journey as possible.

Some of the measures we talked about in the White Paper speak to the wider effort we want to make to improve experiences of the benefits system. With the severe disability group, for example, I hope to be able to say more about the work we will do to kick that on and test that model. We think the model is right, because it reduces the assessment burden on people, particularly where their conditions are unlikely to improve. I would argue that scrapping the work capability assessment provides a good opportunity. We have many debates in this House on that over the years. I am also thinking back to debates before my time here—that was a very controversial issue. Scrapping that assessment is the right thing to do, and it allows us an opportunity to focus on quality decision making over and above the current picture.

We want to better gauge fluctuating conditions in the benefits systems, and we want to test that to see what we could do to provide better-quality support and help for people navigating the benefit system with fluctuating conditions. That is as well as the feedback that came through loud and clear in the responses to the Green Paper: they said that they wanted to see the Department matching expert assessors with their particular conditions, because they think that greater understanding will lead to better outcomes. I am looking forward to the opportunity to debate those issues in the weeks and months ahead.

[Barbara Keeley]

It seemed like the Minister was winding towards his last few sentences, so I did not want us to end the debate without once again thanking carers and the We Care Campaign, who have done such a wonderful job. The Minister has not mentioned carers much, which is disappointing given that carers were mentioned such a lot previously. The Minister talked about people with disabilities wanting to get back into work, which is admirable, but we ought to be constantly thankful for the hundreds of thousands of people who have given up work so that they can care. We owe them a massive debt.

I think I am right in saying that his Government have not done anything like as much work as previous Governments have for carers. They do not have a national carers strategy any more, which we did under previous Governments. It is a pity that, it having been raised so many times in this debate, he has not mentioned carers more.

[Tom Pursglove]

I have not finished my remarks yet. It is important to thank carers, who do a remarkable job and provide incredible support, often to loved ones, family members, and friends. I recognise that is often very challenging, which is why we provide support through the carer’s allowance. The hon. Lady was not in last week’s debate, but I committed to look at carer’s allowances and the thresholds. It is an issue that is being raised fairly regularly in the context of these debates, and I repeat that commitment today. I want to see if the balance relating to carer’s allowance is right, and whether there is more that we can do.

Labour Market Activity

Baroness Keeley Excerpts

Tuesday 28th February 2023 Commons Chamber

[Barbara Keeley (Worsley and Eccles South) (Lab)]

More and more people are being pushed out of work owing to ill health: 2.5 million working-age people are now economically inactive owing to long-term sickness. Given the current stalling living standards and the cost of living crisis, it is unsurprising that many of those people want a job, but the current system is preventing them from re-entering the labour market by not providing the right support, and that is happening on multiple fronts.

The aim of the Restart scheme was to help people who were long-term unemployed as a result of the covid pandemic to get back into work, but a recent evaluation by the National Audit Office found that the programme would support fewer than half the anticipated number of people but would cost 35% more per person. Meanwhile, the work capability assessment regime has disincentivised some people with disabilities from trying to get back into employment because of the risk of losing their benefits when a reassessment of personal independence payment is triggered. I understand that there has been a revision of operational instructions to mitigate that, but the problem has not been eliminated for many people in receipt of the benefit.

As we heard from my right hon. Friend the Member for Leicester South (Jonathan Ashworth), there are also problems with the functionality of the work capability assessment process. Not only are many cases overturned on appeal, but the process itself can be drawn out and difficult. One of my constituents has been waiting for her assessment since April last year, which means that she has been receiving a lower rate of universal credit until it is completed. She has had her appointments cancelled three times, apparently because of lost paperwork. That is unacceptable.

Another constituent told me about her experience of being assessed through the work capability assessment regime for her universal credit. She is a registered nurse, who is currently unable to work owing to health problems. She told me this about one call that took place as part of that assessment process:

“I came off the call in tears and my daughter was very concerned about my state of mind after this call. I was made to feel that I was not worthy of these benefits and made to feel I was claiming something that I shouldn’t be getting. The way I was treated makes me very concerned for other people not strong enough mentally to deal with this abuse of power.”

A third constituent recently told me:

“I feel like I am being made to beg for help.”

It is critical that people are not penalised for trying to obtain paid work. Someone claiming personal independence payments who get a job that does not work out within a year should be guaranteed the ability to return to the exact benefits they were on before, with no fresh benefit assessments required, and, crucially, there must be improved targeted support for people with long-term mental and physical health problems. The current system is trapping people out of the workplace when hundreds of thousands of people are in need of a stable income, so I hope the Secretary of State will agree to reform the disability benefit assessment, as Labour is proposing to do. If not, can he explain how he can listen to the experience of my constituents and defend the current system?

Unpaid carers are another group who have become locked out of the labour market. Although the majority of carers are of working age, many carers have had to reduce their hours at work or quit their jobs entirely because of their caring responsibilities. Carers UK has estimated that nearly 2 million people in paid employment become unpaid carers every year, but a survey by Carers UK found that two thirds of unpaid carers had to give up opportunities at work because of their caring. Women were much more likely to be affected, as were people giving more hours of unpaid care. In the same survey, a quarter of unpaid carers said that they needed better support to return to, or maintain, paid work.

[Wendy Chamberlain (North East Fife) (LD)]

I know the work that the hon. Lady has done in relation to unpaid carers and the support she has given to my private Member’s Bill on carers’ leave. Does she agree that one of the ways of encouraging people back into work is changing the carer’s allowance? It creates a cliff edge that disincentivises unpaid carers from entering employment. Does she agree that it needs to be changed?

[Barbara Keeley]

That is something that Carers UK has campaigned on repeatedly. It certainly does need looking at.

The Government have failed time and again to provide the necessary support for carers. I think I am right in saying that the Secretary of State, when he was talking about his review, did not mention carers. Again, that is disappointing. The carers action plan for 2018 to 2020 was shamefully void of funding provision and ambition for support for carers, and it pales in comparison to the national strategy for carers that Labour published in 2008. The last Labour Government pledged £255 million for new commitments to support carers. That included £150 million to increase significantly the amount of money provided by central Government for breaks from caring. Such breaks can be a lifeline for carers and allow them to continue in employment. That funding for breaks appears to have disappeared.

Labour also committed funding to enable carers to combine paid employment with their caring role and to re-enter the labour market after their caring role had finished, through flexible working opportunities and increased training provision. There was a commitment to working with Jobcentre Plus to deliver improved information and establish a training programme for carers. In contrast, the Government’s carers action plan merely promised to consider dedicated employment rights for carers, and said that the Government would work to increase opportunities for carers returning to the private sector. Those measures are woefully inadequate and demonstrate a failure to support this country’s 10 million carers.

Unpaid carers are repeatedly forgotten by this Government, despite the enormous social and economic contributions they make, so will the Minister—and indeed the Secretary of State, when he is back at his place—work with colleagues across Government to ensure that the benefit system works for, rather than against, people making claims? Will he commit to improving the current regime, which sees too many unpaid carers and too many people in receipt of disability benefits being locked out of employment?

Carer’s Allowance

Baroness Keeley Excerpts

Wednesday 30th March 2022 Westminster Hall

[Barbara Keeley (Worsley and Eccles South) (Lab)]

It is a pleasure to speak in this debate with you in the Chair, Ms Bardell. I congratulate my hon. Friend the Member for Kingston upon Hull East (Karl Turner) on securing this important debate. The cost of living crisis is affecting everyone, but the toll on unpaid carers is particularly heavy, as we have just heard.

Carer’s allowance is the lowest benefit of its kind at just £67.60 a week. Many carers are in arrears, but cutting back on what is spent is not an option when the person being cared for relies on an electric ventilator, an electric wheelchair, pressure pads, hoists or a stairlift, or that person must be kept warm due to a medical condition. Other costs facing carers are also likely to be higher and difficult to reduce, such as transport costs to attend medical appointments or food bills due to dietary or nutritional requirements. Inflation is rising as much as 10% for low-income households because a greater proportion of their income is spent on those energy costs. However, the 3% uplift in carer’s allowance next month does not begin to match those spiralling costs of food and energy.

In a survey, Carers UK has reported that two thirds of carers are currently unable to meet their monthly costs and that is before all the spiralling increases. Furthermore, a quarter of the carers surveyed are already having to use foodbanks. That means the number of unpaid carers relying on foodbanks may be substantial, because as my hon. Friend the Member for Kingston upon Hull East just said, there are 11 million unpaid carers.

Katy Styles is an unpaid carer who cares for her husband and mother. She is a campaigner for the Motor Neurone Disease Association. She gave evidence this week to the House of Lords Adult Social Care Committee and said:

“It would be remiss of me not to mention carers’ finances, because that makes you invisible and impacts on absolutely everything. I went from being a full-time teacher to being a part-time teacher to accommodate my caring role”.

She then went from being a part-time teacher to

“having to give up my job because it was not flexible enough. You have to be there in core hours. You have to be there during term time. If your husband has an issue or needs a medical appointment that is out of that time, you cannot support them.

I am on £67.60 a week now, having had £150 a day. It is a very different thing. I am lucky, because I actually get carer’s allowance. There are so many carers who are not supported with carer’s allowance. That has to change. It needs reform.”

There is a recognition of that need for extra support for unpaid carers in other parts of the UK. Unpaid carers in Scotland receive the carer’s allowance supplement, while in Wales it was recently announced by the Labour Government that unpaid carers would be given a £500 payment to recognise their commitment to caring during the pandemic. By contrast, unpaid carers in England are being left to get by with only a £2 a week increase in carer’s allowance. That miserly increase would be swallowed up, from this Friday, by paying £2.50 for a single lateral flow test just to keep the person they care for safe. On top of that come the soaring bills I have already mentioned.

My hon. Friend the Member for Kingston upon Hull East has talked about the mismatch between the increase in the national living wage and the carer’s allowance earnings threshold, leaving carers, as he said, with impossible choices and loss of income. We cannot continue to leave carers without proper support. That includes carer’s breaks. Funding for respite care has dried up and is no longer earmarked for breaks as it was up to 2010. Carers UK has estimated that 72% of carers have not had a break from caring during the pandemic. Three quarters of carers say they are exhausted and worn out from that caring during the pandemic. The Government’s plan in the social care White Paper for five days of unpaid leave—unpaid leave—to care is woefully insufficient. Once again in her evidence to the Lords Committee on Monday, Katy Styles said:

“I do not know any carer that has had a break. I have not had a break or one day off in eight years. Indeed, I had surgery 10 days ago for a major eye operation. I was in the theatre at 6.30 and back home caring at 9.30, because there is no support.”

Katy also highlighted how carers who are not identified as such do not get signposted or helped to access even the support that is available. She has been a full-time carer for 10 years, but has only received carer’s allowance for eight. She said:

“If you don’t identify then you’re not signposted to any support...I didn’t know that, I’ve missed out on benefits, Carer’s Allowance, for some years, I’ve missed out on carer’s assessments for years.”

In 2012, I brought in a private Member’s Bill on the identification of carers. That would have created a new duty on the NHS to identify carers and promote their health and wellbeing. The then Care Minister in the coalition Government did not support my Bill. When the carers action plan came along, it was not so ambitious; it proposed merely a system of quality markers so that GPs could demonstrate that they were good at identifying carers. Carers organisations know that proper identification of carers by the NHS would mean that we could support carers much more effectively. Carers such as Katy Styles would have been identified as carers more quickly, and signposted to benefits and support earlier, had my Bill been supported by the Government.

The carers action plan expired at the end of 2020. The Health and Social Care Committee, of which I am a member, has recommended a number of times that the Government publish a national carers strategy. An ambitious national strategy for carers backed up by funding is essential to tackle those problems of identification and support that I have talked about. I hope that the Minister will listen and understand the seriousness of the challenges facing unpaid carers, which have been outlined in this debate and will be more so by my colleagues. I hope that she will use the input and lived experience of carers, which were sent in when the Government consulted carers in 2016 to develop a national carers strategy—something they promised but never delivered.

I will finish with the words of one unpaid carer responding to a Carers UK survey this month, which highlights the situation that so many unpaid carers are in:

“It seems everything has increased in cost apart from the money we have to live on. It means that I don’t always have 3 meals a day now. We don’t always have the heating on. Why should someone who has a terminal illness not afford to have a warm home?”

--- Later in debate ---

[Beth Winter (Cynon Valley) (Lab)]

It is an honour to serve under your chairship, Ms Bardell. Other Labour Members have outlined passionately the key issue that care, as a whole, has been insufficiently provided for by this and preceding Governments. Care work, whether paid or unpaid and whether for younger people, older people or disabled people, is undervalued. Having listened to other contributions, every one of us either currently cares for someone or knows someone who has a caring responsibility. Coming to terms with somebody’s illness is difficult in any case, but to have to fight for recognition of the invaluable role that that person fulfils, and to beg for money not to have to suffer poverty, is shameful and must be addressed. After the last election, the Prime Minister stated:

“we will fix the crisis in social care once and for all”.

More than two years later, we have seen no change or improvement in support for caring.

Today in this country, accessing care is too expensive; those who work in care are underpaid, undervalued and overworked. Owners of some care businesses have been accused of being asset strippers. Those who have to conduct visits have too great expectations. The time and effort of those who care for family members is too often forgotten by this Government. As others have said, carer’s allowance at its current rate is completely unacceptable. The pathetic uplift of just over £2 is absolutely shameful. Inflation could hit 10% this year. How can people be expected to survive on that paltry amount? It is beyond me and it should be beyond this Government.

The earnings threshold is very low and blunt, as others have said. It is lower than other income replacement benefits and needs to be reviewed urgently. We need a response from the Government. For more than a decade the Work and Pensions Committee has repeated called for an increased earnings limit and the introduction of a taper. The uprating of carer’s allowance needs to be synchronised with the real living wage. Carers UK stated in response to the spring statement:

“Many carers are already dipping into savings using credit cards, and cutting back on essentials to keep the person they care for warm and to protect their health.”

People currently cannot afford to eat or heat their homes; how are they expected to survive with a real-terms cut in their benefits?

I want to focus the rest of my remarks on my country of Wales. I am proud of our support for carers and am pleased to have the opportunity to pay tribute to a dear family friend who was the MP for Aberavon until 2005, Dr Hywel Francis, who sadly passed away recently. He was responsible for introducing the Carers (Equal Opportunities) Act 2004, which aimed to ensure that carers were adequately valued and supported. The dismal financial situation in which so many currently find themselves means that that aim will not be fulfilled. It has been impossible to implement all the excellent things in that Act, which is coming up to its 20th anniversary.

I am pleased that the Welsh Government are following Dr Francis’s caring and compassionate example. I want to refer to some positive examples of support for carers, which the UK Government must look to. Last week, Julie Morgan, the Deputy Minister for Social Services in the Welsh Labour Government, highlighted how 60% of carers in Wales had reduced their hours at work to manage their caring responsibilities and 6% had given up work altogether. In recognition of that difficulty, she confirmed that 57,000 registered unpaid carers would be awarded a one-off £500 payment in a commitment worth £29 million.

There have been positive responses from agencies in Wales. Kate Young, the chair of Wales Carers Alliance and director of the All Wales Forum of Parents and Carers, welcomed the news that many unpaid carers across Wales would now be supported by that payment. Claire Morgan, director of Carers Wales, said:

“This £500 payment is an important first step in actively recognising carers’ daily contribution to our society”.

Even though Welsh Labour in government has taken more action than its counterpart in Westminster, we know there is more to do. The Welsh Government, as well as carer support organisations, recognise the need to reform the carer’s allowance across the UK. They are keeping up the pressure on the UK Government to put that right for carers, as it is the UK Government’s responsibility.

Last month, Julie Morgan said she regretted the fact that Wales did not control the carer’s allowance. The Welsh Affairs Committee, of which I am a member, published a report less than two weeks ago, saying that there should be an assessment of the potential merits of devolving the administration of social security benefits to Wales, as has happened in Scotland. Scotland has used those powers to establish the carer’s allowance supplement.

I want to remind the House that Welsh Labour in government has also introduced a £1,000 bonus for 53,000 care workers in Wales, starting in April, which will be consolidated to ensure that the living wage is paid to social care workers. That is costing the Welsh Government £43 million. I have just come back from a Citizens UK gathering in Parliament Square with Welsh colleagues that was pushing for health and social care workers in England also to be paid the living wage. I look forward to seeing that change happen.

[Barbara Keeley]

It is worth mentioning that Salford City Council, which is represented by two of us present, is also paying the national living wage, as are a number of authorities around Greater Manchester. That is important in the debate because carers also depend on quality. Quantity of care is woeful but quality is important too, and quality improves with better pay.

[Beth Winter]

I fully agree, and that is excellent news.

To conclude, this issue is all part of building towards a national care service in Wales, which Welsh Labour’s programme for Government is committed to. In announcing the uplift to care workers’ pay, the Minister in Cardiff referred to the commitment

“to set up an expert group to support a shared ambition to create a National Care Service, free at the point of need”.

That was a commitment that I made when I stood for Parliament in 2019 under our manifesto, and I am pleased that Welsh Labour in government are delivering on that. There is another way forward: a way that recognises and rewards care work for the contribution that people make to society. Labour Members recognise that, including my hon. Friend the Member for Kingston upon Hull East (Karl Turner). I hope the Government are listening, because millions throughout the country are tired of waiting.

--- Later in debate ---

[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.

Oral Answers to Questions

Baroness Keeley Excerpts

Monday 21st March 2022 Commons Chamber

[Mims Davies]

I thank my hon. Friend for raising this issue. I spoke to her about her constituents just before the weekend. It is absolutely right that our Department is committed to supporting customers, families, the economy, claimants and our staff. Some 65% of our buildings are of very poor quality; they are small and do not allow for opportunities for progression. Thirty-six years is a really decent innings. We will be working directly, one to one, with our staff, using hybrid working practices to retain as many people as we can and give them a better quality working experience.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

For many people with disabilities, switching off essential equipment to reduce energy costs is not an option. Extra power is needed to run equipment on which they absolutely rely—to power ventilators, to charge electric wheelchairs or to run a stairlift. When I asked the Prime Minister about this recently, he said that the Government would be looking at ways to abate these costs, so what are the Government doing to support people with disabilities who now face unmanageable energy bills?

[Dr Coffey]

Throughout questions my hon. Friends have been setting out the different types of support available for energy bills. I am conscious of what the hon. Lady refers to, and all I can say is that we will continue to look at opportunities to help people, but I encourage her constituents to access support via the local council’s household support fund.

Supporting Disadvantaged Families

Baroness Keeley Excerpts

Monday 9th November 2020 Commons Chamber

[Dr Coffey]

I congratulate my hon. Friend. I know how dedicated he was, before entering this House, to social mobility and tackling poverty, and he continues to be so. I fully agree that a lot of local charities have a particular insight into their communities and are often helped by more national organisations such as FareShare. However, they are not the only ones out there. There are plenty of others trying to make sure that we help people in different ways: not only help to get food on the table but help through some of the wraparound care that is so important for families at this time.

[Barbara Keeley (Worsley and Eccles South) (Lab) [V]]

I want to raise the issue of carers and financial disadvantage. During this crisis, millions of unpaid carers have taken on more caring duties or started caring for a family member for the first time, and many of them are struggling to make ends meet. Although universal credit was uplifted during the crisis to provide people with more support, there was no change to the level of carers allowance, despite it being the lowest benefit of its kind. Will the Secretary of State recognise the monumental impact that the pandemic has had on carers’ lives and introduce an equivalent uplift payment to that for universal credit for carers in receipt of carers allowance?

[Dr Coffey]

I heard part of the hon. Lady’s question and I think the whole House can agree how much we value carers not only as a Government but often through experiences in our own individual lives. I am conscious that carers allowance is not a salary—it is there as a benefit to help people who undertake that duty. I continue to make sure that we try to offer as much help as we can, as a Government, not only to social services but through how we can help people to undertake these caring responsibilities in as flexible a way as possible.

Covid-19: DWP Update

Baroness Keeley Excerpts

Monday 4th May 2020 Commons Chamber

[Dr Coffey]

LHA is done on the basis of certain housing areas, and the Chancellor announced a significant change in order to bring this up to the 30th percentile. I say to my right hon. Friend that councils across the country have been receiving discretionary housing payments—separate from the hardship fund. That was ongoing, and we added £40 million to it for this financial year prior to this situation. I encourage anyone who is still struggling in his local area to go directly to the council for some support.

[Barbara Keeley (Worsley and Eccles South) (Lab) [V]]

During this crisis, the Government have rightly stopped recovering overpayments from universal credit recipients, but they are still deducting money from those who are given an advance payment. We need the five-week wait to be scrapped, so that people do not need advance payments. Will the Secretary of State confirm today that the Government will defer any recovery of advance payments until after the crisis has passed?

[Dr Coffey]

The way that advance payments are recovered is by treating it in effect as a phasing issue, so that people have 13 payments over a year, instead of 12. As a consequence, elements will be removed from the following 12 payments so that the annual total is the same.

Oral Answers to Questions

Baroness Keeley Excerpts

Monday 11th July 2016 Commons Chamber

[Jessica Morden (Newport East) (Lab)]

4. If he will make it his policy to introduce transitional protection for women adversely affected by the acceleration of increases in the state pension age.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

9. If he will make it his policy to introduce transitional protection for women adversely affected by the acceleration of increases in the state pension age.

[The Parliamentary Under-Secretary of State for Work and Pensions (Mr Shailesh Vara)]

Transitional arrangements are already in place. We committed over £1 billion to lessen the impact of the changes for those worst affected, so that no one will see their pension age change by more than 18 months compared with the previous timetable. We have no plans for further changes.

[Mr Vara]

The hon. Lady refers to notice. At the time of the Pensions Act 2011, more than 5 million affected people did receive notification. That was done using the addresses Her Majesty’s Revenue and Customs then had. As far as the proposals are concerned, they all, regrettably, cost a huge amount of money. We therefore have no plans to go down that route.

[Barbara Keeley]

In reality, it is the 1950s-born women who are bearing the cost. My constituent is 62-years-old and is about to be made redundant in July. She suffers with diabetes, a heart condition and COPD. She tells me that, owing to limited childcare, she worked part-time when her family were young and could not contribute to her pension. She is now very anxious that she will never be able to secure another job, and will not receive her state pension until she is 66. She has a large black hole now in her life. How does the Minister advise her on facing that bleak future?

[Mr Vara]

I assure the hon. Lady that, under the coalition Government and the present Government, we have record levels of employment for women, including older women. That is something to bear in mind. We are working extensively with employers to ensure they appreciate the value of older workers, which they do. That is why we have record levels of employment, particularly for women.

Oral Answers to Questions

Baroness Keeley Excerpts

Monday 9th May 2016 Commons Chamber

[Kate Hollern (Blackburn) (Lab)]

19. If his Department will introduce transitional protection for women adversely affected by changes in the state pension age.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

21. If his Department will introduce transitional protection for women adversely affected by changes in the state pension age.

--- Later in debate ---

[Mr Vara]

With permission, Mr Speaker, I will take the hon. Lady’s reference, “from one Minister to another” slightly broadly and remind her that, following the passing of the Pensions Act in 1995 there were 13 years of Labour government during which a succession of Secretaries of State for Work and Pensions and pensions Ministers did absolutely nothing to try to alter the system that she and her colleagues now seek to change.

[Barbara Keeley]

While Ministers do nothing, my constituents and other people are really suffering. My constituent, a woman born in the 1950s, told me:

“I feel anxious and distressed about how I am going to manage without an income in what has been, for my generation, the expected retirement age.”

It is six months since we had our first debate on this, so will the Minister and the Secretary of State now commit that civil servants will assist with costing the various options for transitional arrangements that have been put forward by Labour?

[Mr Vara]

The hon. Lady asks for a costing. During the 2011 debate the cost was calculated to be £1.1 billion, and there is no intention to revisit the issue.