Carer’s Allowance

Debate between Christina Rees and Cat Smith

Monday 22nd April 2024 Westminster Hall

[Christina Rees (Neath) (Lab/Co-op)]

I beg to move,

That this House has considered e-petition 640062 relating to Carer’s Allowance.

It is always a pleasure to serve under your chair-personship, Ms Elliott. The petition was started by Alasdair Adam and has 13,914 signatures. It asks the Government to increase carer’s allowance to 35 hours a week at the minimum wage, and specifically to increase the amount of carer’s allowance to match pay for a full-time job. Unpaid carers eligible for carer’s allowance receive £76.75 a week to provide at least 35 hours of care to people in receipt of certain benefits, which is almost £300 less than what someone earning the national living wage would be entitled to. Many unpaid carers must give up work to provide care, and being a carer can also have a significant impact on wellbeing and lifestyle.

The Government responded:

“Carer’s Allowance is a benefit that provides some financial recognition that a carer may not be able to work full-time. It is part of a range of support based on individual needs, rather than a wage. The Government fully recognises the invaluable contribution that unpaid and family carers make in providing significant care and continuity of support to their loved ones. Unpaid carers play a vital role in the lives of their family and friends—and since 2010 we have increased Carer’s Allowance by almost £1200 a year.”

It is my honour to present this petition to highlight a grave concern that weighs heavily on the hearts of many across our nation. The inadequacy of carer’s allowance in the UK is a concern that affects the very fabric of our society. In a society that prides itself on compassion and support for those in need, it is disheartening to witness the struggles endured by countless caregivers who selflessly dedicate their lives to caring for loved ones. The carer’s allowance, intended to provide financial assistance to those unsung heroes, falls drastically short of meeting their needs.

First and foremost, let us acknowledge the monumental contributions of caregivers. They are the backbone of our communities, often sacrificing their livelihoods and personal aspirations to ensure the wellbeing of others. Their existence saves the taxpayer billions of pounds every year, yet despite their invaluable role, many caregivers find themselves living on the brink of poverty due to the inadequacy of carer’s allowance. One would be forgiven for thinking that carer’s allowance is some extra money for someone who pops in to check on an elderly neighbour. In the vast majority of cases, it is paid to someone who cares round the clock for a close relative.

During my research for this speech, I heard testimony from the petitioner Alasdair, as well as from carers Jacky and Katy from the We Care Campaign, which specifically advocates for unpaid carers. All three cared for close relatives—parents, a child and a partner respectively.

Alasdair spoke about the challenges of making ends meet in circumstances that are far from black and white. His carer’s allowance often needed to go on household items and supporting his father. Living month to month means that there is no money for unexpected outgoings.

Jacky told me about caring for her 28-year-old daughter. The role is 24/7. Although she is reluctant to use external carers, she is also prevented from drawing down direct payments to top up her carer’s allowance. Jacky’s money does not match that of her daughter’s personal independence payment, so she is often left without enough money for both of them to do things such as social activities and hobbies.

Katy cares for her husband who has motor neurone disease, plus her mother and mother-in-law who both have caring needs. Katy spoke of the challenge of making ends meet, surviving only because of her husband’s PIP and a small ill health-related pension. Despite caring for three people, Katy is allowed only one carer’s allowance payment as per the rules. The current allowance barely covers the basic cost of living, let alone the additional expenses incurred during the unpredictable challenges of caring for someone with disabilities or chronic illnesses.

From medical bills to specialised equipment and everyday essentials, the financial burden on caregivers is overwhelming. Many are forced to make impossible choices between putting food on the table and accessing services. Furthermore, the eligibility criteria for carer’s allowance are unduly restrictive, leaving out a significant proportion of caregivers who are equally deserving of support. The requirement for caregivers to provide at least 35 hours of care a week effectively excludes those who juggle caregiving responsibilities with part-time employment or other commitments. That arbitrary threshold denies assistance to individuals who are in dire need of financial relief. Perhaps the Minister will explain how the 35 hours of care criteria was arrived at.

The narrative surrounding carer’s allowance is often toxic, with carers being treated as undeserving at best and criminals at worst. The recent news coverage of people being fined or charged with benefit fraud because of accidental overpayments or honest mistakes, sometimes concerning as little as a few hundred pounds, throws a spotlight on it. Such action is neither fair nor proportional. Carer’s allowance is the lowest paid benefit of its kind. Those examples say something about the value put on carers and speak of a society and its Government that simply do not value care.

Support for carers should go well beyond carer’s allowance. Stakeholders such as care charities and think-tanks have told me of diminishing support for carers during recent years, citing the lack of availability of respite care and training opportunities as examples of a crumbling support network. It is suggested that any reform should centre on providing support for carers to remain in work where possible. That would involve financial support and flexibility in how carer’s allowance is paid to avoid a threshold cliff edge. In addition, the threshold needs to be raised and tied to the periodic uprating of any minimum or living wage.

Across the UK, 600 carers a day give up work without having a choice. In December 2022, Carers UK highlighted that the earnings limit for carer’s allowance is not keeping pace with the national living wage. It stated:

“Over the last four years, the number of hours carers have been able to work alongside receiving Carer’s Allowance has shrunk from just under 15 hours a week in 2019 to roughly 13 hours and 20 minutes from…April 2023. This represents a loss of 1 hour 40 minutes a week. Over a year this amounts to a loss of 12 days of paid work.”

[Cat Smith (Lancaster and Fleetwood) (Lab)]

I congratulate my Petitions Committee colleague on presenting the petition so clearly. She talked about the carer’s allowance not meeting the costs. Is she aware, as I am from my constituents, that the cost of living crisis and things such as food prices going up are actually making that acutely difficult, perhaps more difficult now than it was a few years ago?

[Christina Rees]

My hon. Friend makes an important point, with which I completely agree. This debate can only highlight the plight of unpaid carers.

Although carers can work any amount of hours, they must not exceed the earnings limit, which effectively limits the hours that they can work. It is important to understand that the problem of in-work support is one of implementation, not legislation. Laws exist that provide the framework for support for carers in employment, but all too often we see examples where that support is simply not implemented properly at an employer level. That said, the policy for carer’s allowance needs to be far more inclusive; caring is not just about older people. The 21-hour rule on study is arbitrary and discriminatory. Financial support should be stronger, clearer and less at the discretion of grant decision makers. There is also no clarity on who is responsible for any policy failure at a civil service or a ministerial level; it is everyone and no one.

Work must be done to end the postcode lottery and level up the services available in poorer areas. There are stark inequalities across the different regions in how the carer’s assessment for young carers is delivered. There are huge disparities in whether or not a GP surgery provides information on support for carers, and there is a significant gap between the number of people who identify as carers and those registered as a carer with their GP.

We need to answer the question: what is carer’s allowance for? A recent survey reported that 48% of those in receipt of it say that it does not make the difference that it should. Any reforms must examine the level of carer’s allowance so that it better reflects the level of financial impact of caring responsibilities, increase the earnings limit and tie it to national living wage increases, and review the 21-hour study rule. We need to aggregate the total number of caring hours if someone is caring for more than one person, so that their allowance reflects accurately their caring responsibilities, and explore the option of a sliding scale of payments depending on the level of caring responsibilities, supporting those who wish to stay in work. The reforms must also modernise carer’s allowance processes to guard against accidental overpayments and treat honest mistakes compassionately, fairly and proportionately, and provide an additional payment for carers of state pension age. Such reforms would help to bridge the gap between the current state of things and how we might wish them to be.

Carer’s allowance fails to adequately address the long-term implications of caregiving for the mental and physical wellbeing of caregivers. The emotional toll of caring for a loved one can be profound, leading to increased stress, anxiety and burnout. Without sufficient support, caregivers risk their own health and wellbeing, perpetuating a cycle of hardship and suffering. We cannot turn a blind eye to the injustices faced by caregivers across our nation. It is incumbent on us as a society to rectify those inadequacies and provide meaningful support to those who dedicate their lives to caring for others.

Although I appreciate the difficulties and dangers of paying carers a minimum wage, we must demand a carer’s allowance that reflects the true value of caregiving. We need a fair and dignified allowance that alleviates financial hardship and recognises the invaluable contributions of caregivers to our society. Let us stand in solidarity with caregivers and advocate for meaningful change. I urge the Government and policymakers to reform carer’s allowance and reinvigorate all support to ensure that it serves its intended purpose of providing genuine help for those who need it most. Together we can build a more compassionate and inclusive society where caregivers are valued, respected and adequately supported.