The latest Carers UK report focuses on Carer Poverty & Financial Hardship in the UK and explores the significant issue of poverty among unpaid family carers, providing a comprehensive analysis of the factors contributing to this problem, as well as recommendations for addressing.
With 1.2 million of the UK’s 5.7 million unpaid family carers estimated to be living in poverty, with 400,000 of these in deep poverty, the poverty rate for unpaid family carers is 50% higher than for those who do not provide care.
One of the primary drivers for these levels of poverty is the difficulty in combining paid work with being a family carer – many family carers are unable to work full-time, or at all due to their caring responsibilities. This gap is exacerbated by the inadequacy of social security benefits such as Carer’s Allowance, which is one of the lowest benefits of its kind.
Other factors of poverty among unpaid family carers include the high costs associated with providing care, including transport, food, and replacement care, plus additional housing costs which pose a significant burden, with many carers struggling to cover the cost of housing and at risk of losing their homes.
The recommendations to address the financial challenges faced by family carers include
Government Actions
- A Review of, and Increase Support – The Department for Work and Pensions (DWP) should review the current support provided and increase to sustainable levels. The review should consider Carer’s Allowance, Carer Element within Universal Credit, Carer Addition to pensions, and Carer Premium to legacy benefits
- Introduce Immediate Financial Support – The DWP should increase the value of Carer Element, Carer Premium, and Carer Addition by £11.10 per week as an immediate step towards reducing poverty among family carers.
- Fix Carer’s Allowance Issues – The DWP should address several issues surrounding Carer’s Allowance, including increasing the earnings limit to 21 hours at National Living Wage, removing the 21-hour study rule, and preventing the accumulation of overpayments.
- Develop a National Carers Strategy – Commit to introducing a National Carers Strategy, including carrying out a consultation with stakeholders and family carers
- Improve Employment Rights – Ensure that the Employment Rights Bill fully implements commitments from Make Work Pay, including provision for day-one rights to flexibility. Additionally, a new statutory right to paid Carer’s Leave should be introduced to support carers in balancing employment and unpaid care.
- Recognise ‘Caring’ as a Protected Characteristic – Take steps towards recognising ‘caring’ as a protected characteristic within the Equality Act 2010
- Support for Social Care – Develop a plan for the National Care Service and deliver much-needed funding to help stabilise social care, particularly in the run-up to winter.
Local Authority Actions
- Local Authorities should ensure benefits take-up work targeted at unpaid carers, investigate the impact of additional charges for social paid care services, and introduce more housing support for unpaid carers
Employer Actions
- Employers should implement the Carer’s Leave Act 2023 and Employment Relations (Flexible Working) Act 2023, consider joining Employers for Carers and Carer Confident schemes, and go beyond the statutory minimum to support unpaid carers in their workplaces
Together these recommendations provide a comprehensive package of reforms to tackle poverty among unpaid family carers, involving collaboration between the government, carers, and other stakeholders.
