Unpaid carers are calling for an increase in their allowance to raise their income out of “poverty” levels.
They are urging the Government to raise the pay cap to qualify for Carer’s Allowance from £139 to £218.92 a week.
This would enable claimants to work for 21 hours in their main jobs on the National Living Wage and still receive the benefit for caring for loved ones.
MPs back carers’ demands for the earnings cap, which rose by 5.5% in April, to be increased at the same rate as the NLW, which went up by 9.7%.
Carer’s Allowance increased by 10.1% in April, to £76.25, in line with inflation – but carers and politicians want a full-scale review.
Under current rules, if a carer’s earnings exceed the threshold by even 1p, they lose the allowance and may have to repay it if they continue to claim.
Karl Turner, Labour MP for East Hull, said ahead of National Carers’ Week, from June 5 to 11: “It is no exaggeration to describe unpaid carers as the backbone of the social care system. The bare minimum I ask of the Government today, without fudges and caveats, is to fix the uprate anomaly. Match up the allowance rates to that of the recent minimum wage increases.”
Beth Winter, Labour MP for Cynon Valley, called the situation a “disgrace”, saying: “Carer’s Allowance payments are derisory, set at ‘poverty pay’ levels.
“Carers, as well as those they care for, are not even able to afford essentials and are forced to rely on food banks.”
Lib Dem leader Sir Ed Davey – who with wife Emily gives their teenage son John 24-hour care – said the £139 limit for carers is “plain wrong”. He said: “They constantly go above and beyond for their loved ones, yet are so often taken for granted by this Government. It is a fantastic idea to let them keep more of their own money so they can combine work with caring.”
Charities branded the earnings cap “punitive”. Contact said it “acts as a disincentive to paid work”, while Carers UK called for a review of Carer’s Allowance, to “tailor it to carers’ needs and raise the earnings limit”.
Nursery worker Emma Vye, 53, from Bexley, Kent, cares for daughter Kirsten, 22, who has a rare chromosome disorder. She had to repay her 2019 allowance, around £3,000, after exceed-ing the threshold by £14 when she unknowingly got a pay rise. She said: “I earn £400 a month. I could earn more but I’m too scared to.”
Carer’s Allowance can only be claimed once, even if a carer looks after several people. Suzanne Buckner, 56, of Berkshire, runs a consultancy firm and cares for her husband, daughter and son, but has had to use food banks.
She said: “Carers like me are saving the Government millions – we should not be treated in this appalling way.”
Sarah Danby-Cooper, 37, of Newcastle, cares for her autistic son Indiana, seven. The part-time website administrator said: “I got a flexible job but as I’m over the earnings threshold, I had my Carer’s Allowance stopped.”
The Department for Work and Pensions said: “We have increased Carer’s Allowance and the earnings limit by nearly 40% since 2010.
“Many carers will also be receiving Universal Credit, which includes a carer element worth over £2,000 a year. Carers may also be entitled to further support.”
