Family members caring for loved ones forced deeper into poverty by high cost of living and restrictive Carer’s Allowance

New research from Carers Wales has revealed that family members caring for loved ones who are already struggling with the high cost of living, are being further impoverished by having their ability to earn restricted by Carer’s Allowance.

The research identified that 76% of unpaid carers receiving the allowance are struggling with cost-of-living pressures, while almost half (48%) are cutting back on essentials, including food and heating, and 49% said they were struggling to make ends meet.

Sue* is an unpaid carer in Wales, who said:

“[I] Couldn’t afford my internet bill explained to them I need it to get medication, food, heating and

light, contacting in emergency and they cut me off. I was literally crying on the phone to them telling them it is my lifeline they didn’t care.”

*Name edited for anonymity.

The research will be subject to a debate in the Senedd today, where Members will discuss whether carers can afford to care and what steps need to be taken to support unpaid carers in Wales to look after their loved ones.

Leading the debate, Sioned Williams MS said:

“This report is so important and tells a really concerning story about the difficulties Carers in Wales face.

We know the impact of the cost-of-living crisis is disproportionately affecting unpaid carers, the same unpaid carers who save our NHS in Wales billions of pounds per year. I echo Carers Wales’s calls to the Welsh Government, to provide better financial support to unpaid carers.”

Eligible carers supporting older, disabled or seriously ill relatives receive £76.75 Carer’s Allowance for a minimum 35 hours of unpaid caring a week. This equates to £2.19 an hour*, which is lower than the current national living wage (£10.42/hour), and next April’s increased national living wage (£11/hour), if this goes ahead.

While carers can earn up to £139 per week if they have the time to work, even this added to the Carer’s Allowance still leaves them dismally below the national living wage (£6.16/hour versus £10.42/hour **).

Carers exceeding the £139 a week limit by just one penny forfeit the entirety of their Carer’s Allowance.

Claire Morgan, Director at Carers Wales, said:

“Carers, and particularly those who are receiving Carer’s Allowance, are extremely vulnerable to high costs due to their limited ability to earn an income.

Unpaid carers save Wales over £10 billion a year. It’s high time they receive the support –

particularly financial support – that they need to continue to care. That’s why we’re calling on the Welsh Government to reinstitute the £500 carer payment on an annual basis, and create a new, substantial financial distress fund for carers to access in their times of need.”

The research also showed that, of carers receiving Carer’s Allowance:

36% were struggling to afford the cost of food compared with 23% of all carers.

This was an increase from 34% in 2022

76% of unpaid carers receiving the allowance were even more likely to say they were worried about living costs and whether they can manage in the future, compared with 63% of all carers

69% are worried about the impact of caring responsibilities (e.g. petrol for hospital visits, heating, specific dietary requirements) on their finances

55% had cut back on seeing family and friends, compared with 46% in 2022.

(For more than most, family and friends provide an important life line for unpaid carers, often providing support and respite from sometimes long and lonely hours of unpaid

caring.)

Carers Wales is a member of the Carers Poverty Coalition, made up of over 110 national and local organisations.

Formed in February 2023, the coalition campaigns to reform the benefits system to better support carers financially, end poverty amongst carers by advocating for policy change, bring in better systems to support carers to continue with paid work, and build awareness of the impact of the cost-of-living crisis on unpaid carers.