Carers Benefits will be cut by £31m

  • Disability benefit changes to lead to shock £31 million cut in carers' benefits.

    Carers UK Newsroom

    Carers UK has condemned the 11th hour publication of Government analysis which shows that cuts to disability benefits will result in a knock-on reduction of at least 10,000 in the number of people eligible for Carer's Allowance.

    The main benefit for carers, Carer's Allowance, is linked to the benefits of those they care for - currently Disability Living Allowance, which is to be gradually replaced by Personal Independence Payment (PIP) from April.

    Previous indications from Government were that, despite a planned 607,000 cut [1] to the numbers of disabled people receiving financial support, introduction of Personal Independence Payment ‘will not affect' numbers entitled to Carer's Allowance[2].

    But a shocking cut to Carer's Allowance has emerged in the last minute publication of a Department for Work and Pensions assessment which shows that 10,000 fewer carers will be entitled to Carer's Allowance by 2015.

    This represents a devastating £31 million cut in financial support for those caring full-time for elderly sick or disabled loved ones. This means that many families affected will face the double loss of the disabled person losing support from disability benefits and that a carer looking after them would simultaneously lose their income from Carer's Allowance[3].

    Families ‘will feel betrayed'

    Carers UK Chief Executive Heléna Herklots, said: "These shocking figures show that thousands of carers are going to be stripped of Carer's Allowance as a result of the Government's disability benefit cuts.

    Carers sacrifice so much to care for loved ones and make a huge contribution to family life and our society. They contribute an estimated £119 billion to the UK economy with the care they provide, often at the cost to their health, careers and family finances.

    In return, the Government is now cutting financial support for carers by £31 million - meaning that thousands of families now face the devastating double blow of disability and carers' benefits. This comes on top of cuts to social care services, cuts to Housing Benefit support for carers who need a separate room to sleep in, forthcoming reductions in support with Council Tax and thousands of carers who will have their benefits capped - a perfect storm of cuts to families already struggling to care for loved ones.

    After many warm words from Government celebrating carers' contribution to our country, families will now feel betrayed. The Government must urgently set out what support will be available to carers who lose Carer's Allowance but continue to provide full-time care[4]."

    Last minute impact assessment

    Carers UK and Parliamentarians had called for an assessment of the impact on carers of the replacement of Disability Living Allowance, since the policy was announced in 2010 - arguing that it posed significant risks to carers' incomes.

    The new impact assessment, published on Friday 8th February, has been published just two months before the plans are implemented in April, and Carers UK argues this this leaves no opportunity for adequate parliamentary scrutiny and comes after MP's last opportunity to amend the plans.

    Heléna Herklots said: "We have been shocked at the Government's consistent lack of care in assessing the impact of its changes to benefits on carers. This is one of the biggest changes in decades to support for disabled people and their families and it is unacceptable that the knock-on impact on carers has been ignored until the very last minute. Carers, already too often invisible and ignored, will feel like a complete afterthought to the Government."

    The charity also notes that this analysis only takes account of the first stage of the changes - a further two thirds of disabled people affected will be assessed after 2015 with the risk that thousands more carers will be stripped of support.

    Notes:

    a) The Impact Assessment published on 8th February is available at www.dwp.gov.uk/docs/pip-briefing-carers-allowance.pdf. It shows that:

    • Of 76,000 Carer's Allowance claimants attached to Disability Living Allowance claims being reassessed by 2015 - 50,000 will retain Carer's Allowance; 25,000 will no longer be entitled to it and it is expected that 20,000 would become entitled to it. This leads to a net reduction of 5,000.
    • When new claims are taken into account the Impact Assessment shows that under the current system, Disability Living Allowance, in 2015 297,000 carers would be entitled to receive Carer's Allowance but under the replacement benefit Personal Independence Payment the Government estimates this will be 287,000. A 10,000 net reduction.

    b) As an ageing population and people living longer with disabilities means increasing numbers of families need to provide care, year on year the numbers needing Carer's Allowance have risen since the introduction of the benefit. The average increase since 2003 has been 21,000 each year, yet these new figures show that, by 2015 10,000 fewer will receive support.

    c) The Government's assessment that 10,000 fewer people being entitled to Carer's Allowance amounts to the loss of the benefit at £59.75 a week, £3,107 a year; a total reduction of £31,070,000 in spending on Carer's Allowance.

     


    [1] Personal Independence Payment: Reassessments and Impacts (December 2012) Department for Work and Pensions - shows that, by 2018, the introduction of Personal Independence Payment will result in a fall from 2,182,000 (under the current system of Disability Living Allowance) to 1,575,000 (under Personal Independence Payment) in the number of disabled people entitled to support.

    [2] Disability Living Allowance Reform: Impact Assessment (May 2012) Department for Work and Pensions

    [3] The 10,000 figure consists of families losing Carer's Allowance and new claims by carers who would be entitled under the current system of Disability Living Allowance but who would not be entitled to Carer's Allowance under Personal Independence Payment.

    [4] In order to receive Carer's Allowance carers must be caring for 35 hours a more of care a week to someone receiving a qualifying benefit. 

     

     


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