1.2 million unpaid carers living in poverty, research finds

There are around 1.2 million unpaid carers living in poverty in the UK, with around 1 in 10 (400,000) living in deep poverty, according to a WPI Economics report for Carers UK.

The research shows that for most carers, their Carer’s Allowance is not making ends meet, with 62% (500,000) of those receiving the allowance living below the poverty line.

Carers UK is therefore calling for an increase to the earnings limit for Carer’s Allowance and an increase in support for unpaid carers on means-tested benefits.

900,000 carers receiving means-tested benefits find themselves in poverty

Carer’s Allowance, the main social security benefit for unpaid carers, is one of the lowest benefits of its kind at £81.90 a week. Some unpaid carers are also entitled to means tested benefits such as Universal Credit, however, 900,000 carers receiving such benefits also find themselves in poverty.

The report found that one of the main drivers of poverty is the difficulty of combining paid work with unpaid care, with more than 600 people give up their job every day to care for a loved one. Indeed, statistics show that just 62% of working-age carers are in employment compared to 75% of the general population.

Other poverty drivers include high social care costs and extra expenses such as travel costs, which many carers face when accompanying the person they care for to appointments. Unpaid carers who are women, from ethnic minority groups, those living in the West Midlands and the North were also more likely to be in poverty.

The struggle thousands of carers are facing is perfectly illustrated by Gary, who gave up work to care for his wife after she suffered a spinal injury 7 years ago.

Gary’s story

Gary receives Carer’s Allowance, Universal Credit and is sometimes able to work part-time. However, he is struggling to make ends meet and his family have had to use food banks in the past.

He said: “I care for many more than 35 hours a week and yet our income is just not enough to cover the basics. It’s so disheartening when the support available for unpaid carers is not enough to provide the safety net we need as a family.

“When caring for a loved one, it’s not a choice. It’s something you do. An increase in financial support would make a massive difference to us. It’s a constant strain and now our daughter has started university, I don’t know how we’ll cope.”

Lifting unpaid carers out of poverty

Unpaid carers contribute a staggering £162 billion to the economy each year, but despite the immense value that they bring, many feel undervalued, underappreciated and say that they need further support.

In order to lift thousands of carers out of poverty, the researchers say Carer’s Allowance needs a full review, to increase the level of support to a sustainable level and to reassess its eligibility criteria and processes to ensure it adequately supports unpaid carers in a variety of situations.

Increasing the level of support could be done in a variety of ways, including:

• Increasing the Universal Credit Carer Element and Carer Addition in Pension Credit to £11.10, which would lift 30,000 people out of poverty and 40,000 people out of deep poverty. Cost – £580 million per year.
• Increasing Universal Credit by £36.30 for carers would lift 110,000 people out of poverty and 140,000 out of deep poverty. Cost – £1.8 billion per year.
• Increasing the Carer Addition to Pension Credit by £36.30 could lift 20,000 older carers out of poverty. Cost – £580 million per year.
• Increasing the earnings limit for Carer’s Allowance to the equivalent of 21 hours at National Living Wage would lift 50,000 people out of poverty. Cost – £90 million per year.

Carers UK is now calling on the Government to act on detailed recommendations within the report and announce a review of carers’ social security benefits. This would include committing to reviewing Carer’s Allowance to increase and improve support, as well as increasing carer top-ups for those on means-tested benefits.

Emily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, said: “It’s deeply disturbing and shocking to see the numbers showing that millions of unpaid carers are living in poverty. Every day across the UK, the care they provide helps to hold society together. Yet so many pay an extremely heavy price with caring leaving them in or at risk of poverty and financial hardship. It’s simply unacceptable.

“Relatively small increases to support can have a big impact on carers’ lives and lift hundreds of thousands out of poverty.”

Lauren Nicolle

Lauren is a qualified journalist who writes primarily across the health and social care sectors. She is passionate about exposing the injustices faced by people with a learning disability, with a particular focus on equal access to healthcare.

See Full Bio