The Department for Work and Pensions (DWP) is being urged to raise Carer’s Allowance to match the national minimum wage by a petition that has been signed by more than 6,000 people. The allowance, which is now set at £81.90 per week, is much less than what full-time minimum wage workers make, even though unpaid carers give vulnerable people valuable support.
Advocates argue that carers contribute billions of pounds to the economy annually but receive insufficient financial recognition. The petition highlights the stark difference between the £327.60 paid every four weeks and the potential £1,601.60 carers could receive if their work were compensated at the national minimum wage of £11.44 per hour.
Carers Provide Critical Support but Receive Low Financial Recognition
People who provide at least 35 hours of unpaid care per week are currently eligible to receive the DWP‘s Carer’s Allowance. Helping people with disabilities, chronic illnesses, or age-related ailments is part of this support, which frequently takes the place of more expensive professional treatment.
Despite the importance of their role, carers receive financial support equivalent to £2.34 per hour, significantly below the national minimum wage. Even with an expected increase in April 2024 to £83.30 per week, critics argue that this remains insufficient, particularly as many carers struggle with the rising cost of living.
A report referenced in the petition estimates that unpaid carers contribute £162 billion annually to the UK economy, a figure comparable to the total budget of the National Health Service (NHS) in England and Wales. Campaigners argue that without their unpaid labour, the state would face unsustainable care costs.
Financial Limitations and Risks for Those Claiming Carer’s Allowance
The financial restrictions surrounding Carer’s Allowance present additional challenges. While recipients can work alongside claiming the benefit, they must not earn more than £151 per week after tax, including National Insurance and pension contributions. Exceeding this threshold, even by £1, results in a complete loss of entitlement.
Furthermore, the allowance is classified as a taxable benefit, meaning it is considered income when calculating eligibility for Universal Credit and other financial support. Many carers therefore find themselves reliant on additional benefits while facing stringent income limits.
The existing system, according to critics, discourages work because carers who take on additional jobs to augment their income run the danger of losing their support. People who are already financially challenged may experience additional stress if they violate wage limitations since they may even be accused of benefit fraud.
