Support for Unpaid Carers
I value the enormous contributions made by carers every day. They must receive the support they deserve, both financially and in terms of their own health and wellbeing.
Last year, I backed the largest increase in the Carer’s Allowance (CA) earnings threshold since it was introduced in 1976. Thanks to this change, 60,000 additional people will be able to receive the benefit by 2029/30. This will improve financial security for carers to help them into work, or to work more hours if they choose. It will also avoid inadvertent overpayments.
Carer’s Allowance is kept under review to make sure it meets its objectives. As part of the annual uprating process, I backed an inflation-level increase for CA from this April. Alongside this, the Government has begun reviewing early implementation of carer’s leave under the Carer’s Leave Act 2023, as part of its Plan to Make Work Pay. Ministers are taking this support for carers a step further, by considering the introduction of paid carer’s leave.
It is also worth noting that carers on low incomes may be entitled to additional help through Universal Credit or Pension Credit. Both provide extra financial support specifically for carers, on top of the standard rates.
I am glad the Government has acted quickly to get to grips with CA overpayment issues, which have caused significant distress. As you know, an independent reviewer has been appointed to investigate how the issues occurred, what can be done to help those affected and how to prevent similar problems in future. The Government expects to receive the report from this review shortly, and it will publish its response as soon as possible after that. In the meantime, Ministers are already improving data systems and communication with carers to prevent large overpayments in the first place.
In my view, long-term reform to social care is essential to ensure carers are properly supported. The recent Spending Review provided for a £4 billion increase in the adult social care budget, and I welcome plans to establish a National Care Service. An independent commission into social care has been launched, to assess what reforms are needed, and the first report will be published next year.