Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps she is taking to help tackle poverty among parents who are carers of disabled children.
Tackling child poverty is an urgent priority for this Government. The Child Poverty Taskforce’s publication of 23 October ‘Tackling Child Poverty: Developing our Strategy’ sets out how we are developing the Strategy, exploring all available levers to drive forward short and long-term actions across government to reduce child poverty. The Strategy will look at levers across four key themes of increasing incomes, reducing essential costs, increasing financial resilience; and better local support especially in the early years. Parental employment is a key part of the work we are doing. This will build on the reform plans underway across government and work underway in Devolved Governments. The Child Poverty Taskforce is progressing work to publish the Child Poverty Strategy as soon as possible.
This is a cross-government effort. The Department for Education is working to provide the best start in life through high-quality early education and childcare to raise standards and help parents to work, for example through the new breakfast club programme, and expanding wraparound childcare for primary school children across England by increasing the number of places available, to support working families. We have jointly announced with DfE that we are expanding free school meals to all children in households on Universal Credit.
The Department for Business and Trade has responsibility for policy on flexible working and carer’s leave, which is another key element.
And the benefit system, in addition, makes provision for disabled children through Disability Living Allowance (DLA), and for their parents through the carer element and the disabled child addition within Universal Credit (UC).
Support is also available through Carer’s Allowance (CA). Where carers are able to work, the weekly CA earnings limit for those in receipt of CA is now pegged at 16 hours work at National Living Wage (NLW) levels, and in future it will increase when the NLW increases. The earnings limit increased to £196 a week, on 7 April 2025, compared to £151 in 24/25. This is the largest ever increase in the earnings limit since Carer’s Allowance was introduced in 1976 and the highest percentage increase since 2001.
As a result, unpaid carers will be able to increase their income, and many will now have more certainty that if they are receiving the NLW (and have not done overtime or received a bonus) they will be able to work for 16 hours a week and still receive Carer’s Allowance.