Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment she has made of the potential implications for her policies of her Department’s estimate that the lost output due to working age carers caring for working age sick is £37 billion.

This Government recognises and values the vital contribution made by carers every day in providing significant care and continuity of support to sick and disabled family and friends. Without the support they provide there would be more pressure on formal social care services, whether provided by local authorities or through other routes.

The Casey Commission, announced recently by this government, will start a national conversation about what care and support working age adults, older people, and their families should expect from adult social care, including exploring the needs of unpaid carers. Furthermore, the Government’s plans to reform and modernise the NHS will see reduced waiting times and improved care, helping people to remain in work and economically active. And the Government is reviewing the implementation of the Carer’s Leave Act, which gave employed carers a right to time off work for the first time. We will also explore the benefits of paid leave, while being mindful of the impact of any changes on small employers. Through the Employment Rights Bill, we will make sure that flexible working – which can play such an important role in helping carers balance their work and caring responsibilities - is available to all workers except where it is genuinely not feasible.

With respect to support from DWP, unpaid carers on low incomes can receive support through Universal Credit. This can respond flexibly to variations in earnings and caring responsibilities and includes a carer element worth £2,400 a year for those providing unpaid care of 35 hours a week or more. Full-time carers are also exempt from requirements to seek or prepare for paid work, although they can request employment support if they wish to do so. For those providing unpaid care of less than 35 hours a week, Universal Credit seeks to balance paid work and unpaid care by tailoring the number of hours people are expected to work or search for work to take account of their caring responsibilities. Part-time unpaid carers receive personalised employment support through their Jobcentre Plus work coach. This can include access to skills provision, referral to an employment support programme such as Restart, careers advice, job search support, volunteering opportunities, and access to the Flexible Support Fund to aid job entry.

For those in England and Wales who are providing care of 35 hours or more a week to a disabled or elderly person with care needs, Carer’s Allowance is available. This is subject to a weekly earnings limit, which since 7 April 2025 has been linked to 16 hours work at National Living Wage (NLW) levels. This government has increased the threshold by the biggest amount ever, meaning it is currently £196 a week of net earnings (after allowable costs, including costs related to care), compared to £151 in 2024/25. The increase means that over 60,000 additional people will be able to receive Carer’s Allowance between 2025/26 and 2029/30. This is the largest ever increase in the earnings limit since Carer’s Allowance was introduced in 1976 and is the highest percentage increase since 2001.