Government Pledges to End Carers Allowance “Cliff Edge”
Unpaid carers are set to be spared a benefits “cliff edge” under a cost-of-living package unveiled by the Chancellor on the eve of the Budget, with the Government promising to end the sudden loss of support that has long penalised those who step over earnings limits.
The announcement forms part of five “everyday fixes” aimed at easing pressure on household budgets, including the cost of food, fuel and family life, and ministers say millions of families, working people and carers will benefit. For the sector, the measure will be watched closely by care providers and the families who rely on unpaid carers alongside residential and nursing services.
The package will tackle costs people face every day, from doing the weekly shop to supporting people who rely on their cars for work, while extending support to new parents and fixing an unfair cliff edge that can penalise unpaid carers for earning more.
This, the government said is the latest in the Prime Minister’s series of ‘everyday fixes’ designed to tackle everyday frustrations, save families time and money and give them more room to breathe. It follows action on unfair airline charges, subscription traps, rogue traders and rip-off school uniform costs.
It comes ahead of the Budget on Wednesday focused on giving families and businesses breathing space with the costs they face today, while taking the long-term decisions needed to strengthen the economy and support growth and bring costs down.
Prime Minister Andy Burnham said: “We are taking on the big challenges facing the country. But that doesn’t mean losing sight of the everyday problems that cost people money or simply aren’t fair.
“If you’re a nurse driving for work, a parent spending those precious first weeks with your new baby, or an unpaid carer picking up an extra shift, these changes will make life a little easier and put more money back in your pocket.
“And at Wednesday’s Budget, we’ll go further to give families and businesses the breathing space they need today, while we build a stronger economy, transform our country and bring down cost for people long-term.”
The Chancellor of the Exchequer John Healey said: “Today’s everyday fixes are just a small part of what we are doing to give families a bit of breathing space. Conflict in the Middle East and Europe is hitting families here at home through higher everyday costs. We can’t control global events, but we can act where we can make a difference.”
Carers Trust Chief Executive, Kirsty McHugh, said: “It is great news that the Government is acting to remove the Carer’s Allowance cliff edge. This has long been a concerning part of our benefits system, penalising thousands of carers who are juggling paid work with their caring role. Carers all over the country should now be able to take comfort that they will be able to earn that bit more without being inadvertently plunged into debt.”
Emily Holzhausen CBE, Director of Policy at Carers UK said: “We have been calling for a taper to the earnings limit and an end to the cliff edge on Carer’s Allowance for many years and we’re pleased that the Chancellor has committed to this next step. Our evidence from unpaid carers found many having to give up part-time paid work altogether or turning work down because they cannot risk going over the limit and losing 100% of their Carer’s Allowance. Once introduced, it should also help to significantly reduce the number of overpayments related to earnings which carers have found devastating financially and emotionally.”
