Unpaid Carers Missing Out on £160 Monthly Due to Outdated Benefit
Unpaid carers across the United Kingdom are receiving approximately £160 less each month than they should be entitled to, according to a stark warning from Carers UK. This significant shortfall stems from the Department for Work and Pensions' Carer's Allowance failing to keep pace with rising average earnings over the past five decades.
Benefit Value Has Stagnated Since 1976
Carers UK analysis reveals that if Carer's Allowance had remained aligned with increases in average earnings since its introduction in 1976, its value would be substantially higher. Currently paid at £86.45 per week or an average of £374.62 monthly, the benefit would instead be worth roughly £123.48 weekly or £535.08 monthly. This represents a glaring gap of nearly £160 each month for those providing essential care.
The Carer's Allowance is provided to individuals who offer at least 35 hours of care weekly to a family member or friend who is elderly, disabled, or managing a long-term health condition. Despite this substantial commitment, the benefit equates to a mere £2.47 per hour, making it the lowest benefit of its kind in the system.
Financial Hardship and Poverty Widespread
The financial strain on carers is severe and widespread. Carers UK reports that 62% of Carer's Allowance recipients, approximately half a million carers, are currently living in poverty. The organisation's research paints a troubling picture of the daily realities faced by these individuals:
- Nearly half (49%) of carers have reduced spending on essentials such as food, heating, clothing, and transport over the past year.
- A third (32%) have accumulated debt through credit cards, bank loans, or overdrafts.
- 84% report significant increases in their energy bills, adding to their financial pressures.
Furthermore, more than 600 people are forced to abandon work daily to provide care, often jeopardising their own financial security. Many households also face elevated living expenses directly connected to disability and long-term health conditions.
Calls for Urgent Review and Modernisation
Helen Walker, Chief Executive of Carers UK, expressed deep concern over these findings. "These figures are alarming because we regularly hear from carers who are providing far more than the 35 hours of care required to qualify for Carer's Allowance while struggling to make ends meet," she stated. "Many tell us that their income simply isn't enough to cover the basics."
Walker emphasised that with an ageing population, the demand for care is growing rapidly. Unpaid carers are increasingly stepping in to fill gaps in the care system, often providing intensive support and managing complex health conditions. "62% of current and former carers say they had no choice in taking on the role because no other care options were available," she added.
"Too many carers are being pushed into financial hardship because the support available has failed to keep pace with rising wages and living costs," Walker asserted. "Fifty years on from the introduction of Carer's Allowance, it's time for a full review to ensure the benefit properly recognises the vital role carers play and provides the financial security families need to keep caring."
Government Response and Additional Support
A Labour Party Government spokesperson addressed the issue, stating: "We understand the huge difference carers make and we're taking action after inheriting a system that let them down. That's why we've delivered the biggest ever cash increase in the earnings threshold, uprated the benefit, and accepted the vast majority of the Sayce review's recommendations - including modernising the benefit so it works better for carers."
The spokesperson also highlighted that working-age carers can receive additional support through Universal Credit, which is worth more than £2,500 annually. However, Carers UK maintains that fundamental reforms to Carer's Allowance itself are urgently needed to address the chronic underpayment and prevent further financial hardship among the nation's unpaid carers.
