The Department for Work and Pensions (DWP) faces calls to raise Carer’s Allowance by £470 annually to align with the rate of Jobseeker’s Allowance. A report from the Resolution Foundation has highlighted the heavy financial burden borne by unpaid carers, particularly those on low incomes.
The Struggle of Unpaid Carers in the UK
According to the Resolution Foundation, unpaid carers are facing a “very heavy price” for providing essential care to loved ones, as they receive just £83 a week under the current Carer’s Allowance.
This amount falls significantly below the £92.05 per week received by individuals on Jobseeker’s Allowance, leaving many carers struggling to make ends meet. The thinktank has called on the DWP to raise Carer’s Allowance to at least match the Jobseeker’s rate—a £9.05 increase that would provide carers with an additional £470 annually.
The issue is made more pressing by the rising demand for unpaid care in the UK. With over a million working-age families caring for disabled individuals, the financial strain is acute, particularly for those with limited incomes.
Hannah Slaughter, Senior Economist at the Resolution Foundation, noted that the trend of increasing disability and care needs shows no sign of abating, and argued that government policies should reflect this ongoing reality.
The “Cliff-Edge” Penalty for Carers’ Earnings
An additional issue raised by the Resolution Foundation is the so-called “cliff-edge” penalty, which penalises carers if they earn above a certain threshold.
However, this system is regarded as punitive for those who attempt to balance part-time work with their caring responsibilities. The thinktank has called for the removal of this penalty, which it believes discourages carers from pursuing work and further exacerbates their financial difficulties.
Slaughter stressed the importance of policy reform to better support carers, highlighting the need for improved job retention for both disabled employees and carers.
Carers UK, a prominent charity advocating for carers, echoed these concerns, with Director Emily Holzhausen stating that the report from the Resolution Foundation reinforces the need for urgent reform.
Government Response and Ongoing Review
In response to the report, a government spokesperson acknowledged the vital role played by unpaid carers and outlined recent measures to support them. These included raising the earnings threshold for Carer’s Allowance by £45 per week to £196, a change that will benefit over 60,000 carers by 2029-30.
The government also pointed to the ongoing independent review into social care, which will explore the needs of unpaid carers and assess the adequacy of current support systems.
Despite these steps, critics argue that more needs to be done to address the financial hardships faced by carers. With a growing number of individuals relying on unpaid care, the question of how to better support these workers remains at the forefront of policy debates.
