Carers: Financial Support

Baroness Pitkeathley Excerpts

Tuesday 16th May 2023 Lords Chamber

Asked by

[Baroness Pitkeathley]

To ask His Majesty’s Government whether they plan to review the financial support available to unpaid carers following new research by Carers UK and the University of Sheffield which found that they contribute £445 million daily to the economy in England and Wales.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Viscount Younger of Leckie) (Con)]

My Lords, the Government recognise the vital role played by millions of unpaid carers across the country. We are already providing them with record amounts of financial support through the benefits system, including nearly £3.5 billion per year to around 1 million carers through the carer’s allowance alone. Those unpaid carers in lower-income households could also receive an additional £2,200 per year through the universal credit carer element.

[Baroness Pitkeathley (Lab)]

My Lords, I was only asking for a review; it seems a modest enough request in view of the £445 million contributed every day by unpaid carers. May I ask the Minister something very specific which, if there should be a review, he would be able to consider? The earnings limit for carer’s allowance is not rising as quickly as the national living wage. The number of hours carers are allowed to work will reduce from 14 to 13 before they lose their entitlement to the benefit. This means that carers are very limited in their ability to undertake paid work and combine it with their caring, which many of them wish to do. Does the Minister agree that deterring carers from working is really not sensible, and that the earnings limit should be increased to a minimum of 21 hours at national living wage rates?

[Viscount Younger of Leckie (Con)]

I know the noble Baroness has much experience in this particular area. On the carer’s allowance, I can reassure her that we continue to review the limit and make changes where we feel they are warranted and affordable. The carer’s allowance has an earnings limit, which she alluded to, which permits carers to undertake some part-time work; it also recognises the benefits of staying in touch with the workplace, which we regard as important, including providing greater financial independence and social interaction. As the noble Baroness will know, it can be extremely lonely and very hard work being a carer, as the hours are often long and the work very demanding.