Families receiving Carer's Allowance face 'impossible dilemma' - here's why

Speaking during a Westminster Hall debate on the issue, Mr Turner said the Minimum Wage is increasing by just under seven per cent to £9.50 per hour.

Meanwhile, the Carer’s Allowance is rising by around three per cent from next month to £69.70 per week, with the earnings threshold going up by the same rate.

He said he was “utterly appalled” to learn the impact this will have on a couple in his constituency - a blind man and his wife who is his carer but also works two jobs to the maximum hours permitted by the allowances earning threshold, which is moving from £128 to £132 per week.

Mr Turner said: “The rise in the minimum wage and the rise in the earnings threshold simply do not match up, forcing them and many others into an impossible dilemma.

“She can’t just work one hour less, she will have to give up one of the jobs. Even if it was her smaller job of six hours per week, that is a loss of £57 per week - nearly £200 a month. It is comparatively a fortune to the family - the difference between having something to eat and literally not turning on central heating.

“The other option is to give up the Carer’s Allowance entirely because if the threshold is exceeded by just £1, 100 per cent of the benefit is removed. That is the harshest withdrawal rate in the entire welfare system.

“So this is the choice, though you can hardly call it that, facing them and thousands of other families. They are between a rock and a hard place in the face of a devastating cost of living crisis.

Over 900,000 people in the country provide at least 35 hours of care to a relative or loved one enabling them to receive the Carer’s Allowance, with millions more providing unpaid care.

Mr Turner called on the Government to “fix this punishing anomaly” and match up the increasing rates.

“Don’t punish those who have done absolutely nothing but good for their family and society.”

Department for Work and Pensions Minister Chloe Smith said the Government “certainly values the vital contributions made by carers every single day”.

She said the spending on Carer’s Allowance is expected to cost almost £4.4bn a year by 2027.

“There are additional amounts for carers in Universal Credit and other benefits.

“The Government has chosen and intends to focus extra support on carers who need it the most. Around 360,000 caring households on Universal Credit receive an additional nearly £2,000 a year and that amount will also increase from April.”

She said carers on Universal Credit would not face the same “cliff edge” described by Mr Turner.

“Carer’s Allowance has this earnings limit which permits carers to undertake some part-time work if they are able to do so. This recognises of staying in touch with the workplace including greater financial independence.

“We want to encourage carers to combined some paid work with their caring duties. That’s why we do regularly increase the earnings limit. That limit will have increased by around one-third since 2010.

“Many who are receiving Carer’s Allowance and doing some work will also be receiving Universal Credit and in that case a 55 per cent taper rate will help to ensure people are better off in work.”

Mr Turner said in response: “Frankly, I’m not convinced the Government care quite enough. This isn’t a lifestyle choice, it could happen to every one of us.

“I know the Minister has got the power. She can leave here now and go and make the changes that will affect these carers. Don’t just rely on Treasury civil servants and ministers and ‘spreadsheet says no’.”

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