Carer’s Allowance

Debate between Chloe Smith and Barbara Keeley

Wednesday 30th March 2022 Westminster Hall

[Chloe Smith]

The hon. Gentleman tempts me down paths that I am afraid I am unable to go down in this debate, but I look forward very much to working with him and others to make that goal a reality.

We are spending record amounts to support unpaid carers. Real-terms expenditure on carer’s allowance is forecast to be £3.1 billion in 2021-22 and to increase by two fifths by 2026-27, when the Government are expected to spend just under £4.4 billion a year on it.

Patterns of care have changed significantly over the last few decades. People are providing vital unpaid care for relatives and friends in a whole range of circumstances. Nearly 1 million people are now receiving carer’s allowance and the weekly rate will increase to £69.70 in April. Since 2010, it will have increased from £53.90 to £69.70 a week, providing an additional £800 a year in cash for carers through the carer’s allowance. There are additional amounts for carers in universal credit and other benefits.

[Barbara Keeley]

I am astonished that the Minister can read out those notes with a straight face, given what everybody has said. Most Members here have made the point that a £2 increase is an insult given what we know about what is happening with the cost of living—even just with lateral flow tests. How can she read those figures out and not be ashamed of them?

[Chloe Smith]

I am sorry if the hon. Lady thought that that was a useful use of the minutes we have left, when I have plenty more to say. She stops me to insult me rather than letting me talk about carers; that is not particularly helpful.

Like other hon. Members, I want to talk about the rate of carer’s allowance. I will start with whether it is high enough. The Government continue to provide financial support to unpaid carers through carer’s allowance, the carer element in universal credit, and other benefits. We have chosen to focus extra support on carers who need it the most. About 360,000 carer households on universal credit can receive nearly £2,000 year through the carer element, and that amount will increase from April 2022. Universal credit is of course a key benefit—indeed, it is the key benefit—for carers on low incomes, on whom we most need to target the support. Indeed, carers in receipt of universal credit do not face the cliff edge identified by the hon. Member for Kingston upon Hull East in opening the debate.