Unpaid carers are finding it hard, the charity said (Image: Alistair Berg via Getty Images)
Unpaid carers are missing out on approximately £160 monthly because the DWP’s Carer’s Allowance has failed to match rising earnings over the last 50 years, it has been claimed. Carers UK said it had analysed ONS data and discovered that Carer’s Allowance, presently £86.45 weekly or £374.62 on average monthly, would be valued at roughly £123.48 per week or £535.08 each month if the benefit had remained aligned with increases in average earnings since 1976.
While benefits are not usually linked to earnings growth, the expanding gap underscores the genuine financial pressures carers encounter as living costs continue climbing, the charity said. With gas and electricity bills averaging approximately £147 monthly for a typical UK household – and prices anticipated to increase further this year – the shortfall is roughly equivalent to the expense of heating and powering a home, it added.
Carers UK said Carer’s Allowance, paid to individuals providing at least 35 hours of care weekly to a family member or friend who is elderly, disabled or has a long-term health condition, is the lowest benefit of its kind – equivalent to merely £2.47 hourly. Meanwhile, 62% of Carer’s Allowance recipients, around half a million carers, are living in poverty, it claimed.
It added that more than 600 people abandon work daily to provide care, frequently placing their own financial security at risk. Many of these households also face elevated living expenses connected to disability and long-term health conditions.
Carers UK stated its research revealed that nearly half of carers (49%) had reduced spending on essentials such as food, heating, clothing and transport over the past year. A third (32%) had accumulated debt through credit cards, bank loans or overdrafts, while 84% reported their energy bills had risen.
Carers UK has asked for action (Image: Getty)
Carers UK, previously known as the National Council for the Single Woman and Her Dependents, spearheaded the campaign to establish Carer’s Allowance in 1976, which initially launched at the rate of £7.90 a week. However, in the 50 years since, society and the broader economy have transformed considerably, it noted.
Recently the Government has raised the earnings limit to 16 times the National Living Wage and is proposing a taper to eliminate the “cliff edge” earnings threshold, which Carers UK described as “a positive step forward”, though other aspects of the benefit still fail to meet carers’ requirements, it added.
To commemorate the 50th anniversary of the benefit, Carers UK is now demanding a “comprehensive review” of Carer’s Allowance and associated benefits. Representatives of the Carer Poverty Coalition, headed by Carers UK, have dispatched a letter to the Secretary of State requesting a review examining how caring intersects with employment, financial security and social security to guarantee it appropriately values and supports all unpaid carers.
Helen Walker, chief executive of Carers UK, said: “These figures are concerning because we hear regularly 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. Many tell us that their income simply isn’t enough to cover the basics.
“With an ageing population, the demand for care is growing rapidly. Unpaid carers are increasingly stepping in to fill the gaps, 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.
“Too many carers are being pushed into financial hardship because the support available has failed to keep pace with rising wages and living costs. 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.”
A Government spokesperson said: “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. Alongside this, working-age carers can receive additional support through Universal Credit – worth more than £2,500 a year.”
