The latest figures from the Department for Work and Pensions (DWP) show that in May there were 936,766 people receiving weekly payments of £69.70 for Carer’s Allowance, including 81,682 living in Scotland. However, new research from the Carers Trust suggests that some unpaid carers are relying on loans and credit cards to help them pay bills during the cost of living crisis.
As a result of its findings, the charity is urging the UK Government to provide additional cost of living support to unpaid carers now, and to develop a long-term funding strategy for social care. It said that Carer’s Allowance is not an adequate income replacement and recipients are more likely to struggle to make ends meet or use food banks compared to people who do not receive the benefit.
While Carer’s Allowance will rise in line with inflation next April, increasing from £69.70 per week to £76.75, claimants will still not be eligible for the new £900 cost of living payment announced in the Autumn Statement earlier this month.
The study indicates that almost two-thirds of unpaid carers have had to stop working or reduce their hours so they can continue caring. The charity said people who care for loved ones are experiencing “unprecedented financial hardship” as the cost of living crisis deepens.
Its opt-in survey of 2,675 unpaid carers over the UK between July 22 and August 24 found that 41 per cent of respondents have given up paid work so they can care for a sick or disabled loved one. A further 23 per cent have reduced the number of hours they work because of their caring role.
The research also suggested that one in seven (14%) family carers are using food banks, while 25 per cent have cut back on food, and nine per cent have either sold their home or released home equity so they can afford essentials.
Some 26 per cent have used a credit card to pay for essential household goods, 26 per cent have borrowed money from a friend or relative and 18 per cent have taken out a loan.
Commenting on the findings, Carers Trust’s chief executive, Kirsty McHugh, said: “With little ability to work, unpaid carers simply cannot boost their earnings to meet the cost of living crisis.
“Yet they need to keep the heating on and equipment running to keep their sick and disabled relatives warm and safe.
“The recent Autumn Statement simply did not recognise the extra cost of being an unpaid carer.
“We therefore need to raise Carer’s Allowance urgently and to add it to the list of benefits qualifying for the additional £900 cost of living support payment.”
Ms McHugh said the UK Government must also publish a strategy for unpaid carers, adding: “As a country we’re relying on unpaid carers to keep the health and care system afloat.
“The least we can do in return is ensure they get a fair deal in return.”
A UK Government spokesperson said: “We are committed to supporting people with the cost of living and we have provided at least an extra £1,200 of support to eight million of the most vulnerable households, while our Energy Price Guarantee will save people over £700 between October and March.
“We are also providing local authorities with £291.7 million in funding for short breaks and respite services for unpaid carers, as well as additional advice and support.”
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Minister for Mental Wellbeing & Social Care Kevin Stewart said: “The Scottish Government is very concerned about the hardship households, particularly unpaid carers, are facing in this cost-of-living crisis.
“The Carer’s Allowance Supplement has been delivered annually since 2018 and is only available in Scotland. It is a top-up benefit provided by the Scottish Government, which this year will provide up to £491.40 extra to eligible carers on top of their Carer’s Allowance. By the end of this year, carers continuously in receipt of Carer's Allowance Supplement will have received over £2,700 above Carer’s Allowance since its introduction.
“We are currently finalising a National Carers Strategy which will set out a cross-government approach to carers’ financial inclusion including through social security policies, the Scottish Welfare Fund, action on fuel poverty and supporting carers in employment and education.
“We have allocated almost £3 billion in this financial year to help households face the increased cost of living, including £1 billion in providing services and financial support not available elsewhere in the UK.
“The Scottish Government will continue to do everything within its powers and finite budget to ensure people are supported as far as possible. However, most of the key policy levers are held by the UK Government, which needs to take urgent action, including uprating benefits it delivers in line with inflation for the next financial year.”
You can read the full 'I see no light at the end of the tunnel' report on the Carers Trust website here.
