The government faces growing calls to overhaul carer’s allowance after a damning report revealed unpaid carers lose up to £7,000 annually. Experts warn current rules push families into poverty, further emphasizing the need for an overhaul of carer’s allowance.
The Resolution Foundation found unpaid carers suffer a 10% income penalty compared to non-carers. Many sacrifice earnings to care for loved ones full-time.
Carer’s allowance remains the lowest-value benefit at just £83.30 weekly, adding to the argument for a complete overhaul of the carer’s allowance system. The thinktank urges raising it to at least £92.05 matching jobseeker’s allowance rates.
A strict £196 weekly earnings cap forces carers to choose between work and support. Thousands accidentally breach limits, owing huge overpayments.
The DWP’s harsh enforcement recently left vulnerable families facing bailiff threats. An independent review now examines the scandal, a key factor in the call to overhaul carer’s allowance.
Two-thirds of unpaid carers face material deprivation, struggling to afford food and energy. Benefits fail to offset lost income from reduced working hours.
Carer’s allowance’s value has plummeted from 32% to just 19% of minimum wage earnings since 1999. Restoring 1999 levels would cost £2.9bn annually.
Scotland pays carers £94.60 weekly £11 more than England and Wales. Campaigners demand UK-wide parity alongside these key reforms:
- Scrap punitive earnings limits
- Introduce phased income deductions
- Expand paid carers’ leave
Ministers highlight raising the earnings threshold by £45 weekly – the biggest ever increase. A social care review will examine carers’ needs. But critics say tweaks ignore systemic failures. With disability rising, experts stress: “Policy must catch up with reality,” making it imperative that there is an overhaul of carer’s allowance.
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