Carer’s Allowance

Debate between Julie Elliott and Beth Winter

Monday 22nd April 2024 Westminster Hall

[Julie Elliott (in the Chair)]

Order. The debate may now continue until 7.55 pm, although that depends on there being no more votes, of course. I call Beth Winter to continue.

[Beth Winter]

Like many other Members here, I have lots of constituents who are carers and come to me for assistance. One constituent has been a carer for his wife for more than 40 years following her diagnosis of schizophrenia. He is now a pensioner with a low income, but that impacts significantly on his entitlement to carer’s allowance. Another constituent who cares for her grandfather had her carer’s allowance revoked, before we intervened, for exceeding the income threshold during a period of financial difficulty and mental health impact. The DWP confirmed that a payment should not have stopped and she received over £1,000 back. There is the issue of overpayment, but I also worry about how many carers may be being underpaid significantly without accessing support or advice. There is also a large proportion of people who do not claim the benefits that they are entitled to.

Only 71% of carer’s allowance claimants in 2023 were receiving a payment, and the remaining approximately 400,000 claimants met the conditions set out above but were not receiving the benefit due to the overlapping benefits rule—including nearly all pensioner carers, which hon. Members spoke about earlier. The e-petition asks that carer’s allowance be raised to the rate of 35 hours per week at the level of the national minimum wage. That would equate to £400 per week. The Government’s response says that carer’s allowance is

“a benefit that provides some financial recognition that a carer may not be able to work full-time.”

But should someone earn more than £151 per week, they lose all access to carer’s allowance; that is the cliff edge situation that others have mentioned today. That £151 is only around 13 hours of work at the adult national minimum wage, and the number of minimum wage hours that can be worked before hitting the threshold has declined in recent years. That is completely inadequate and unacceptable, and it is in need of urgent reform. That is why the Government must commit to improving the carer’s allowance.

I have previously spoken in the House about the Work and Pensions Committee’s call for an increased earnings limit and the introduction of a taper. Here today is the Chair of that Committee, my right hon. Friend the Member for East Ham (Sir Stephen Timms), who has spoken about the issue in much more detail. I have also said that the uprating of the carer’s allowance needs to be synchronised with the real living wage.

Carers UK has set out a number of demands ahead of the election. It calls for an increase in the earnings limit for carer’s allowance to the value of 21 hours per week at the national living wage rate and for that link to be defined in law, so that the ability of carers to earn is not eroded over time. That would take the earnings threshold to £240 from the current £151. It also calls for reform to the eligibility rules for the carer’s allowance, including ending the cliff edge, giving access to a tapered rate for those working more hours each week, enabling more than one person to receive the benefit if multiple people care for the same person, and extending the run-on payments for bereaved carers from eight to 12 weeks. Most importantly, Carers UK urges the Government to carry out a full review of the link between caring and poverty across the UK and to commission an independent inquiry to explore longer-term solutions to bringing more unpaid carers out of poverty.

The Carer Poverty Coalition says the carer’s allowance itself should be increased and I think that is vital, having spoken to many carers in my constituency. The current rate is undoubtedly a poverty payment, and the earnings threshold cliff edge makes a mockery of social justice. The reality is that many carers work full time as a carer and the state refuses to recognise that financial benefit to society, as well as the invaluable contribution that carers make. The idea of earning a minimum wage for a full-time job has long been accepted, and we should do the same for those people caring.

I want to comment more generally on the demonisation of people who receive social security benefits, which are an entitlement and a right. More recently, that demonisation was demonstrated by the Prime Minister’s comments about a “sick note culture”, which were dangerous and absolutely disgraceful and will do nothing except exacerbate the hardship that people experience. The demonisation and stigmatisation of claimants, including millions of carers, must stop. As an example, in my constituency of Cynon Valley, we have high rates of social security claimants, including people in receipt of carer’s allowance. [Interruption.]

[Julie Elliott (in the Chair)]

Order. There is another Division. We will suspend for 15 minutes.