The UK Government has dismissed proposals to increase Carer’s Allowance weekly payments to match the rate for the National Minimum Wage of an 18-year-old. Carer’s Allowance is administered by the Department for Work and Pensions (DWP) and currently pays people £69.70 per week, but an online petition asked for this to be increased to £239.05 to “reflect the work carers do”.
Carer’s Allowance is for someone who provides care for a friend or family member for at least 35 hours each week and is paid every four weeks, amounting to £278.80 each pay period, however, Emma Roberts who created and posted the petition, highlighted that when the payment rate is compared to that of someone aged 18 earning National Minimum Wage, it works out at less than £2 per hour, compared to £6.93 per hour.
The ‘Increase Carer's Allowance to equal 35hrs at National Minimum Wage’ petition on the petitions-parliament website has received nearly 27,150 signatures of support from across the UK and a response from the DWP explaining why the rate of pay cannot be increased.
DWP said: “This Government recognises the very important role that unpaid and family carers make in providing significant care and continuity of support to family and friends on a daily basis.
"It is however, important to emphasise that Carer’s Allowance is not intended to be a replacement for a wage nor a payment for the services of caring and is therefore not comparable with either the National Minimum Wage or the National Living Wage."
“The principal purpose of Carer's Allowance is to provide a measure of financial support and recognition for people who choose to give up the opportunity of full-time work to provide regular care for a severely disabled person.”
It continued: “It has never been the role of the Government to pay people for the tasks they undertake, voluntarily, in the way that an employer would, and this Government has no plans to change that principle. Instead, successive Governments have supported carers through allowances and benefits as well as wider cross-government actions.”
DWP added: “Unpaid carers are overwhelmingly caring for a family member or friend, rather than someone unknown to them.
“The amount of unpaid caring they undertake, and its intensity, will differ from carer to carer, as will their reasons and motivation for accepting caring responsibilities.
“Many can successfully combine caring with some employment, so will continue to have income from paid employment.”
However, it also said that those unpaid carers who do need financial support may be able to get help from the benefits system - and not only from Carer’s Allowance, but from a range of means-tested benefits as well.
Carers on low incomes can claim income-related benefits, such as Universal Credit, alongside Carer’s Allowance.
Universal Credit can be paid to carers at a higher rate than those without caring responsibilities through the payment of the carer element.
In April 2022, the Universal Credit carer element increased to £168.81 per month.
DWP explained: “Around 405,000 (Feb 22 data) carer households on Universal Credit can receive around an additional £2,000 a year through the carer element.”
A National Insurance Class 1 credit is generally awarded for each week that Carer’s Allowance is paid to a working-age carer.
Class 1 credits can help towards the conditions of entitlement to all contributory benefits, as well as the new State Pension - receipt of Carer’s Allowance also exempts the carer from the benefit cap.
DWP also said that Carer’s Allowance permits carers to undertake some part-time work if they can do so, without this affecting their entitlement.
It said: “The earnings limit recognises the benefits of staying in touch with the workplace, including greater financial independence and social interaction.”
You can read the DWP’s full response to the petition here.
Despite the rejection of the proposal in the petition, if it reaches 100,000 signatures - it is currently 83,000 away from that threshold - it will be considered for debate in Parliament.he petition is open until December 22, 2022.
To keep up to date with developments on this petition, join our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out three times each week - sign up here.
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