Background
Unpaid carers are continuing to face unprecedented financial difficulties because of the UK’s recent cost of living crisis. Without urgent support from the Government, we are worried that many carers will be unable to cope with these financial pressures.
Caring presents additional costs that can place a significant strain on carers’ finances and we know that many carers suffer financial hardship as a direct result of the care they provide.
Our report, published in October 2024 and drawing on statistics from the Carers UK State of Caring Survey 2024, found that 61% of carers are worried about living costs and managing in the future. Over a third (35%) of carers said they don’t feel confident they will be able to manage financially over the next 12 months, causing significant anxiety and stress.
The report also found that carers are struggling with day-to-day living costs, with 28% of carers cutting back on essentials like food and heating – an increase from 25% in 2022. Financial hardship is even greater for those in receipt of social security benefits, with 42% of carers in receipt of Carer’s Allowance struggling to make ends meet.
A report by Carers UK and WPI Economics published in September 2024 found that 1.2 million unpaid carers live in poverty, with 1 in 10 unpaid carers living in deep poverty. The report, which was funded by abrdn Financial Fairness Trust, found that an inability to participate in paid work, caring for long hours, and receiving income-related benefits are the strongest predictors of poverty amongst unpaid carers.
Our calls on Government
We are calling on the Government to ensure no carer faces financial hardship because of their caring responsibilities. We are urging the Government to provide additional and targeted support for unpaid carers, particularly for those unable to work or those on the lowest incomes. We want the Government to:
- Conduct a comprehensive review into Carer’s Allowance and other carer-related social security benefits to increase the level of support to a sustainable level and reassess their eligibility criteria to ensure these are supporting carers in a variety of situations.
- Immediately increase the value of Carer Element, Carer Premium and Carer Addition by £11.10 per week, to lift at least 30,000 people out of poverty and 40,000 out of deep poverty.
- Increase the level of Carer’s Allowance by at least £11.10 a week in England, Wales and Northern Ireland (at 2024/25 rates) to match the effective rate in Scotland.
- Reform the eligibility rules for Carer’s Allowance, such as removing the 21-hour study rule, whereby someone is not allowed to claim Carer’s Allowance and be in full time education of more than 21 hour a week.
- Reduce the barriers to paid work for carers who are able to combine paid work with caring, including by introducing paid Carer’s Leave, increased flexible working rights and tailored support for carers to return to work and gain essential qualifications.
- Develop the plan for the National Care Service and deliver much-needed funding to help stabilise social care, to better support unpaid carers’ wellbeing and enable some carers to continue with or return to paid work.
- Provide additional financial support to carers of State Pension age, including a new non-means-tested payment. There should also be a review of pension rules for carers, with implementation of initiatives to get carers up to similar pension levels as non-carers.
- Review and expand the eligibility criteria for Winter Fuel Payments, including unpaid carers on the list of recipients as well as households with disabilities.
Campaigning work
Our campaign to help carers who are financially struggling has taken a step forward with the increase to the Carer’s Allowance earnings limit announced in the 2024 Autumn Statement. From April 2025, those in receipt of Carer’s Allowance will be able to work up to 16 hours per week at National Living Wage. This is the largest increase to the earnings limit since the benefit was first introduced in 1976 and means that 60,000 more carers will be able to access Carer’s Allowance. Working carers will now be able to earn £196 a week and claim Carer’s Allowance – an increase of around 30% from the previous earnings limit of £151. For the first time in decades, the earnings threshold will be pegged to National Living Wage increases, creating greater security for working carers.
Carer Poverty Coalition
Read our latest report
CUK State Of Caring 2024 FINANCES Web
PDF(2769.5MB)
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