Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the letter sent by Carers UK to the Chancellor of the Exchequer on 3 February, and of the proposal that a £20 supplement to the Carer’s Allowance be made in the Budget to support carers during the COVID-19 pandemic.

This Government continues to protect the value of benefits paid to carers whilst also spending record amounts in real terms. The level of Carer’s Allowance is protected by uprating it each year in line with the Consumer Price Index (CPI). The purpose of benefit uprating is to ensure that the value of benefits stays in line with the general level of prices. For the April 2021 increase, the Department for Work and Pensions used the September 2020 CPI, which was 0.5 per cent. Since 2010, the rate of Carer’s Allowance has increased from £53.90 to £67.25 a week, meaning around an additional £700 a year for carers. Between 2020/21 and 2025/26 real terms expenditure on Carer’s Allowance is forecast to increase by nearly a third (around £1 billion). By 2025/26, the Government is forecast to spend just over £4 billion a year on Carer’s Allowance.

In addition, Carer’s Allowance isn’t the only benefit available to carers. Carers have access to the full range of social security benefits depending on their individual circumstances. Income replacement benefits help individuals and households on lower incomes, and can include a carer premium, which is currently £37.50 a week. An equivalent additional amount applies in Pension Credit. Universal Credit also includes a carer element at the rate of £162.92 per monthly assessment period. These amounts recognise the additional contribution and responsibilities associated with caring and mean that lower-income carers can receive more money than others who receive these benefits.