Tag: Carers Scotland

New rise in Carer Support Payment in Scotland earnings limit will increase financial security for carers on a low income

  • The earnings limit to be eligible to claim Carer Support Payment will go up from £151 per week to £196 per week in April.
  • Carers Support Payment, which remains the lowest benefit of its kind, will also rise from £81.90 to £83.30 – less than the price of a first-class postage stamp.

Unpaid carers who are in employment will benefit from a rise in the earnings limit on Carer Support Payment, allowing them to earn up to £2,340 more per year.

From 7 April, unpaid carers in paid work will be able to earn up to £196 per week, after tax, National Insurance and certain expenses, and still be eligible to claim Carer Support Payment. This is an increase of £45 compared to the previous earnings threshold of £151 and allows carers to work the equivalent of 16 hours at the National Living Wage.

 Carers Scotland welcomes this change, which is the largest increase in the earnings limit for the benefit since it was introduced in 1976. It will allow unpaid carers to take on more paid work while receiving Carer Support Payment, providing vital income for those juggling employment with care.

Carer Support Payment is the main carer benefit, replacing Carers Allowance in Scotland. It is available if you spend at least 35 hours a week providing care and support to someone who is disabled, has an illness or long-term condition, who needs extra help as they get older or is affected by addiction. 

The earnings limit increase will help unpaid carers in paid employment to stay in work, increasing their earnings potential and providing more financial security. It will also allow many carers whose earnings are above the previous limit to access Carer Support Payment for the first time.

Carers Scotland continues to call for the earnings limit to be tied to the National Living Wage so that carers do not have to reduce their hours as the earnings limit fails to keep up with increases to the National Living Wage. The charity says regulations to formally tie Carer Support Payment to the National Living Wage are vital.

However, for those who are unable to combine paid work and care, the value of Carer Support Payment remains low, despite the additional support of the twice yearly Carer’s Allowance Supplement 1. From 7 April 2025, Carer Support Payment will rise by 1.7% from £81.90 to £83.30 per week, which is less than the price of a first-class postage stamp.  

UK Government plans for welfare reform are likely to have a subsequent impact on the Scottish budget and on the already limited incomes of unpaid carers and disabled people in Scotland.

There are an estimated 100,000 unpaid carers living in poverty in Scotland, with carers 56% more likely to be in poverty, and 60% more likely to be in deep poverty, than those without caring responsibilities.

Fiona Collie, Head of Public Affairs and Communications at Carers Scotland, said: “Carers Scotland welcomes the increase in the earnings threshold to £196 which will support more unpaid carers to earn more from paid employment alongside their Carer Support Payment. This change will also enable more carers to claim Carer Support Payment.

“The new threshold amount applies once a carer has taken away deductions for tax, national insurance and half of any pension contribution. Carers may also be able to deduct some of the costs to provide care whilst working.

“We would encourage all carers in employment or who are thinking about returning to employment to find out more about Carer Support Payment and the earnings threshold from the Carers Scotland website or by contacting the Carers UK advice line.”

Local MSP Gordon Macdonald commented:  “I welcome this improved support for unpaid carers across the city.  

“The Scottish Government to raise the earnings limit for Carer Support Payment once fully launched, based off feedback from carers and support organisations – this is now coming into place and supporting carers throughout the city.

“These changes will increase the number of unpaid carers able to access financial support. 

“This is just one of many examples of increased powers in Scotland being used to improve lives here in Edinburgh – we could go so much further with the full powers of independence.  

Find out more about Carer Support Payment and the new earnings threshold here on the Carers Scotland website.

Alternatively, you can access the Carers UK helpline from 9am – 6pm Monday to Friday by calling 0808 808 7777 or email advice@carersuk.org at any time.  

28% unpaid carers across Scotland are living in poverty

ONE IN TWELVE IN DEEP POVERTY

28% unpaid carers across Scotland live in poverty, with 1 in 12 in deep poverty 

  • The rate of poverty amongst unpaid carers is 56% higher than those who do not provide unpaid care in Scotland.  
  • 8% of unpaid carers in Scotland live in deep poverty; 50% below the poverty line. 
  • As many as 100,000 unpaid carers in Scotland are living in poverty. 
  • Carers Scotland is calling for an increase in the value of Carer Support Payment and in its earnings-limit along with an increase in support for unpaid carers on means-tested benefits.

 

New research finds that unpaid carers in Scotland are significantly more likely to experience financial hardship compared to those who do not provide unpaid care. The report by WPI Economics for Carers UK, funded by arbdn Financial Fairness Trust, explores the drivers and extent of poverty amongst unpaid carers in Scotland, finding that 28% are living in poverty, with 8% classed as being in “deep poverty”. 

One of the main drivers of poverty highlighted in the report is the difficulty unpaid carers have combining paid work with their caring role. Many unpaid carers have to give up their careers or reduce their working hours as a result of their unpaid caring responsibilities, which can result in a loss of income and their ability to accumulate savings and pensions.  

Other drivers of carer poverty include high housing costs, lack of support and access to social care services and the inadequacy of social security.  

Fiona Collie, Head of Public Affairs and Communications for Carers Scotland, said: “It’s deeply disturbing and shocking to hear that as many as 100,000 unpaid carers in Scotland are living in poverty.

“Every day across the country, the care they provide helps to hold society together, and too many are finding themselves in precarious financial positions as a result. Relatively small increases to support can have a big impact on carers’ lives and lift many thousands out of poverty. 

“Many carers face huge challenges juggling paid work and unpaid care. We need better support for carers in paid work, and to see visible change for those facing high costs linked to caring by the planned National Care Service meeting the needs of unpaid carers and supports them to continue with paid work, where they are able to combine this with their caring role.  

“Carers who are struggling financially, caring for more hours, and caring over a longer period of time are under immense pressure. They urgently need proper support, new rights and legal protections to ensure that they are not penalised as a result of their caring role.” 

Vivienne Jackson, Programme Manager at abrdn Financial Fairness Trust, said: “The care system would collapse without the vital people who provide unpaid care.

“It’s not right that those who provide essential services to some of the most vulnerable people in our society are living in poverty. Government and employers need to work together to help lift carers out of poverty.” 

Carers Scotland is now calling on the both the UK and Scottish Governments to act on the detailed recommendations laid out in the report, including committing to reviewing Carer Support Payment to increase its low value, reducing complexity and to increasing carer top-ups for those on means tested benefits such as Universal Credit. 

The Scottish Government must also continue to develop and deliver its commitment to pilot a minimum income guarantee for unpaid carers in Scotland 

The charity also wants to see better support for carers who might be able to combine paid work with unpaid care, including increasing the earnings threshold in Carer Support Payment to 21 hours at the National Living Wage.   

Improved support on the way for Scotland’s unpaid carers

PLANS FOR A NEW BENEFIT

Views are being sought on plans to improve support for Scotland’s community of unpaid carers through the introduction of a new benefit.

Under Scottish Government proposals, Scottish Carer’s Assistance will replace Carer’s Allowance, currently delivered by the Department of Work and Pensions (DWP), and be delivered by Social Security Scotland.

It will support over 80,000 people who provide 35 hours per week or more of care to those receiving certain disability benefits. An additional payment of more than £500 a year will be made to those who care for more than one person.

A consultation published today outlines proposals aimed at improving the service that carers receive, including increased financial support and links to wider support in areas such as social care, employability, education and bereavement.

It also highlights how support could be expanded once those already in receipt of Carer’s Allowance have been transferred from DWP to Social Security Scotland.

Social Security Minister Ben Macpherson said: “Caring for a loved one can be a positive and life changing experience but also presents many challenges. We will deliver Scottish Carer’s Assistance in a compassionate and considerate way, linking carers to wider services.

“We will also create a weekly payment of £10 for those caring for more than one person, and if the person they care for is challenging a change to their disability benefits we will make support available.

“This is in addition to continuing support for young carers and maintaining the extra support from our Carer’s Allowance Supplement, providing eligible carers with an extra £460 a year.

“When we have introduced our new benefit, and safely and securely transferred people from Carer’s Allowance to Scottish Carer’s Assistance, we intend to make further improvements. We will look for opportunities to make these changes sooner if we can do so without putting carers’ existing benefits at risk.

“These further changes would help remove barriers to education, allow carers to add together hours spent caring for more than one person to qualify for support, extend support after the loss of a cared for person or when a cared for person is in hospital, and enable carers to earn more from paid work.

“We want to hear people’s views on these plans, other potential changes beyond these, and thoughts on how improvements would help address inequality and poverty.”

Fiona Collie, Policy & Public Affairs Manager at Carers Scotland, said: “Carers Scotland is very pleased to welcome the publication of this consultation on proposals for Scottish Carer’s Assistance and a new Carer Additional Person Payment to support unpaid carers. 

“This opportunity to improve the main financial support for carers in Scotland is an important one and carers have long discussed ways in which it can be changed to recognise their caring and better meet their needs. 

“I would encourage as many carers as possible to respond and bring their views and experiences to the consultation, either individually or through events and activities that are planned.”  

The Scottish Carer’s Assistance consultation is open for responses until 23 May 2022.