Carer’s Allowance

Karl Turner Excerpts

Wednesday 30th March 2022 Westminster Hall

[Karl Turner (Kingston upon Hull East) (Lab)]

I beg to move,

That this House has considered carer’s allowance.

It is an absolute pleasure to serve under your chairship, Ms Bardell. I thank all the Members who have taken the time to attend this incredibly important and timely debate.

It is no exaggeration to describe unpaid carers as the backbone of the social care system and of communities up and down the country. In caring for relatives and loved ones, their dedication ensures thousands of people living with disability or illness are able to live with dignity and respect. They are vital and their work is crucially important to society, but too often they are not treated with the decency and respect they deserve or given credit for their work, not just in caring for people but in benefiting wider society.

There are an estimated 11.5 million unpaid carers across the UK, with over 900,000 of them putting in the minimum 35 hours to receive the carer’s allowance of just £67.60 per week. It is a crying shame that their efforts are so poorly recognised. Meagre as it might be, the benefit is crucial in allowing carers to perform their vital service, which would simply not be possible otherwise. However, working outside those caring responsibilities not only brings home much-needed wages, but we know there are many benefits from keeping in touch with the workplace, including carers’ identities and self-esteem, and social engagement outside their full-time caring role.

Were carers not providing the care that they provide, and the state were forced to step in instead, the cost to the Treasury would be extremely high. The charity Carers UK estimates the economic value of unpaid care provided over the two years of the pandemic at more than £380 billion—that is more than the entire NHS budget over the same period. Given the vital importance of unpaid carers and the allowance that helps them do what they do, I was utterly appalled when my constituent, Mr Steve Spamer, wrote to me recently to explain the changes the Government will impose on him just a few weeks from now.

Steve is registered blind, and has been for many years. Not only does his wife provide round-the-clock care, but to make ends meet she works two jobs, up to the maximum hours permitted by the allowance’s earning threshold. She does six hours cleaning in the local pub and eight hours in the local shop, on top of providing full-time care. Working 14 hours at the national minimum wage rate comes to £124.74 per week, just under the current earnings threshold of £128.

Next month, the minimum wage will rise by just under 7% to £9.50 an hour. While this is not enough to address the cost of living crisis, an issue that I will come back to shortly, it is of course welcome. As a passionate believer in the minimum wage, I am glad to see it rise. The carer’s allowance will go up too, by approximately 3% to £69.70 per week. Again, that is a far cry from where it should be, in my view. Members across the House, especially Ministers in London, should have frank conversations with themselves about whether they could survive on that sum. None the less, we welcome the increase.

The earnings threshold will rise by the same rate. The issue for Mr Spamer and his family, who will certainly not be alone, is that the rise in the minimum wage and in the earnings threshold simply do not match up, forcing them, and many others, into an impossible dilemma. The Minister might respond that Mrs Spamer could reduce her hours so that she does not exceed the earnings threshold. That is all well and good, but this is the real world, not a spreadsheet. She cannot work just one hour less; she would have to give up one of those jobs entirely. Even if that were the smaller job—at the pub, for example, at six hours a week—that is a loss of £57, nearly £200 a month. That is comparatively a fortune to the family, and the difference between having something to eat, putting grub in their tummies, and not turning on the central heating.

The only other option is to give up the carer’s allowance, because if the earnings threshold is exceeded by just £1, 100% of the benefit is removed. That is the harshest withdrawal rate in the entire welfare system. That is the choice, though it can hardly be called that, that the Spamers and thousands of other families now face, cut back by £200 or £280 a month. They are stuck between a rock and a hard place, in the face of a devastating cost of living crisis, soaring inflation, sky-rocketing energy bills, and a Chancellor more interested in publicity stunts than putting money in the pockets of working people.

It is worth bearing in mind that the £20 universal credit uplift shamefully did not apply to those on legacy benefits, including carer’s allowance. People in this position have received even less support than others. The Minister knows all of this. I was grateful to have had the opportunity earlier today to speak to her briefly about what I wished to raise, so I know this will come as no surprise.

I also wrote to her six weeks ago, to raise the Spamers’ case. I had hoped that the discrepancy between the national minimum wage and the carer’s allowance earnings threshold rises was a simple, honest oversight, rather than a catastrophic, seemingly deliberate omission, affecting unpaid carers. Sadly, the reply I received confirmed that the Department for Work and Pensions was proceeding exactly as intended, and would only consider further changes to the earnings limit

“where they are warranted and affordable”.

The Minister needs to have a long, hard think about how those words sound to families up and down the country, frankly doing the work of heroes, caring for people who are incredibly ill, some who might be near death, and saving the country an absolute fortune. In recent years, consensus has been reached in this House and the country on the need, though not the method, for root and branch reform of the social care system. A conversation on how the carer’s allowance fits in to that picture is long overdue.

Mr Spamer and his family, and all the thousands of people like them, should not be subject to a drawn-out review and consultation. They are staring down the barrel of the gun in just a few weeks’ time. The bare minimum I ask of the Minister today, without fudges and caveats, is to fix this punishing anomaly. Match up the rates and do not punish those who have done absolutely nothing but good for their family and society.

--- Later in 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)?

[Chloe Smith]

Which percentage increase?

[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.

[Karl Turner]

I thank you personally, Ms Bardell, for allowing me to leave the Chamber to speak on the P&O statement by the Secretary of State in the main Chamber. I thank all Members for attending and for their incredibly instructive contributions to the debate. We all have constituents who are—if I can put it like this—truly at the sharp end of this anomaly.

I thank the shadow Minister, my colleague and hon. Friend the Member for Lewisham, Deptford (Vicky Foxcroft), who has been incredibly helpful in helping me to prepare for the debate. Some of this stuff, frankly, is quite complex. I have benefited from her incredible knowledge in this area.

I know the Minister a bit, and I think that she cares. I do not intend to be personal. However, the people who rely on this support are at the sharp end. They truly do not know whether they can afford to live; some of them are worried about using their electricity supply, which they need to operate the apparatus that is keeping their loved ones in the family home. Frankly, I am not convinced that the Government care quite enough. This is not a lifestyle choice. As we have heard, it could happen to any one of us—we could end up being a carer. People do not choose to do it. They do it because they need to, and they provide the most valuable service to society.

I know that the Minister has the power. She can leave here now, go to her Department and make changes that will affect these carers so that they do not have to rely on Treasury civil servants and Ministers and their spreadsheets that say no. Actions can be taken, and I very much hope she will do that.

Question put and agreed to.

Resolved,

That this House has considered carer’s allowance.