Carers UK's reaction to the Budget

Reacting to today’s Budget Statement, Imelda Redmond, Chief Executive of Carers UK said:

“Carers will be bitterly disappointed that there have been no changes to Carer’s Allowance, and no specific measures to support carers through the recession.

Over 1 million people in the UK who look after relatives and friends are at risk of poverty. These unpaid carers often give up their own jobs to look after elderly parents, spouses or other relatives saving the state an estimated £87 billion a year. Many carers end up relying on state benefits, yet the main benefit for carers, Carer’s Allowance, is just £53 a week – the lowest benefit of its kind.

We are also concerned about the environment into which the care and support Green Paper will emerge in June, with the focus on efficiency savings and reducing the public debt. Despite the tight public finances, more money needs to be found for our social care system so that people who need care and their families no longer struggle to get the support they need.”

Despite there being no major measures for carers in the Budget, there were some changes that will benefit carers including:

• The Government is raising the capital disregard in Pension Credit, and pensioner-related Housing and Council Tax Benefit, from £6,000 to £10,000 in November 2009. This will increase the income of 540,000 pensioner households, including older carers, by £4 per week on average. This measure will also mean that more carers who have savings are eligible for Pension Credit.
  
• The Government will contribute £100 per year to the Child Trust Fund account of disabled children, with severely disabled children receiving £200. Children who receive Disability Living Allowance at any point in a tax year will receive these contributions. Payments will commence from April 2010 onwards.
  
• An additional £125 million in 2009-10 and £145 million in 2010-11 will be allocated to the Social Fund, which provides lump sum payments, grants and loans for people on low incomes. Many carers rely on the Social Fund to help them meet one off payments.
  
• Grandparents who are of working age and looking after grandchildren will get National Insurance credits towards their state pension. This will benefit many families with disabled children who rely on grandparents due to a lack of affordable and appropriate childcare.
  
• The Saving Gateway, a scheme to encourage saving for working-age people on lower incomes by matching saving with Government contributions, will be introduced in nationally in 2010. Following lobbying by Carers UK, the government has amended the scheme so that recipients of Carer’s Allowance will be eligible to open Saving Gateway accounts, meaning that around half a million claimants of Carer’s Allowance will now be eligible.
  
  More information about the budget can be found here.