Carer’s Allowance

Mims Davies Excerpts

Monday 22nd April 2024 Westminster Hall

[The Minister for Disabled People, Health and Work (Mims Davies)]

It is a pleasure to serve under your chairmanship, Mrs Cummins. It is a pleasure to respond to what has been a slightly protracted, wide-ranging e-petition debate. I thank the hon. Member for Neath (Christina Rees) for introducing it with a characteristically thoughtful and wide-ranging speech, and I welcome Alasdair’s raising the issue.

This debate is welcome. It comes at a challenging time for our carers looking after their loved ones: we are post-covid and we face cost of living pressures due to the invasion of Ukraine. It is a challenging time for all of us, but most particularly our carers. I want, like many, to begin by paying tribute to the millions of unpaid carers across this country. Very thoughtful and personal contributions have been made by hon. Members, and I duly note the queries and challenges they have raised. I have much to say in response.

First, I know that people are concerned that the Government do not recognise and value the contributions made by carers every day in providing this significant care and continuity of support to family and friends, including pensioners and those with disabilities, but it is really important to put on record that that is not my perception. That is not how I want people to see this Government. I will do my best to make that clear to those watching.

The 2021 census indicates that around 5 million people in England and Wales may be doing some unpaid care, with many of us taking on that role at some point in our lives. Like other hon. Members, I see much of the work that is done by carers in my postbag, at events in my constituency, at carer’s rights days, or through engaging with my constituents in Mid Sussex. None of us is immune to the challenges of caring. Colleagues will know that this is of particular interest to me as a former carer and as part of a caring family. I pay tribute to all who do this daily. It is a difficult job—one that is the best and the worst in the world, in some ways. You will always be grateful that you have been there. It is precious and hard going in equal measure and I pay tribute to all those doing that.

Carers are fortunate enough to have some wonderful advocates. We have seen that both in the contributions of MPs to this debate and in organisations such as Carers UK, Carers Trust and the Learning and Work Institute, to name but three. Some of those have been mentioned already. I meet Carers UK regularly, and will be doing so again shortly. I was delighted that my officials were able to meet recently with a wonderful delegation of inspirational young carers who were part of Young Carers Action Day in March.

I also pay tribute to the hundreds of DWP staff, largely based in the north-west, who provide financial support to a million unpaid carers through the carer’s allowance, day in and day out. I want to make sure that our approach is one of always being happy to look at to mistakes or other issues and of always treating each case on its merits.

It would be misleading the House if I was not completely clear that this is a policy area that I have been hugely interested in, both as a Back Bencher through the work of the all-party parliamentary group and now as a Minister. I have been acutely interested in these matters, and I can be clear with the House that, since coming to this role, this is a matter that I have been examining. I genuinely welcome this debate.

I want to support those unpaid carers to do some of the paid work that they love, want to do and continue to do, something that they can balance alongside their commitments to their loved ones—the people who they are looking after. We have of course legislated to ensure that employees will be entitled to five days of unpaid care leave per year and will be supported through more flexible working in the workplace. I encourage employers listening to consider job design, have supportive conversations and be part of acknowledging this invaluable role. This is a community, employee and Government partnership.

[Ed Davey]

When the Minister talks about legislating for five days’ leave for carers, will she mention my hon. Friend the Member for North East Fife (Wendy Chamberlain), who piloted that legislation with cross-party support?

[Mims Davies]

Yes, indeed. I was supportive of that myself, attending where possible to support that legislation going through. The Government absolutely welcome the cross-party work the hon. Member for North East Fife (Wendy Chamberlain) did piloting that, and congratulations to her.

On the specific subject of the debate, we are spending record amounts to support unpaid carers. Real-terms expenditure for carer’s allowance is forecast to be £4.1 billion in 2024-25 and by 2028-29 the Government are forecast to spend over £4.5 billion a year on carer’s allowance. We spend another £685 million to support carers receiving universal credit through the carer element.

As mentioned today, patterns of care have changed significantly over the past decade. People are providing vital unpaid care to relatives and friends in a whole range of circumstances that work for all concerned, but I also recognise that none of this is easy. Nearly one million people now receive carer’s allowance, and the weekly rate increased this month to £81.90. That means that since 2010 it has increased from £53.90 to £81.90 a week, providing an additional £1,500 a year to carers through the carer’s allowance compared with 2010. Of course, there are additional amounts for carers in universal credit and other ways forward, and it is important that those watching and those who maybe have not had this conversation are aware of those and come forward to get the support they need. That also can be through the household support fund. We know that unexpected outgoings happen, and people should reach out through their local authority and through Barnett consequentials. I know that that has been an important support mechanism for carers.

The crux of the petition we have been debating is that we should turn carer’s allowance into a carer’s wage. It is important to emphasise that the carer’s allowance is not intended to be a replacement for a wage or a payment for services of caring, hence some of the issues rightly raised today. It is therefore not directly comparable to either the national minimum wage or the national living wage. The principal purpose of the carer’s allowance as it stands, and under successive Governments since 1976, is to provide a measure of financial support and recognition for people who are not able to work full time because of their caring responsibilities. I reiterate that I welcome the debate and the opportunity to review and understand these issues. Successive Governments have supported carers through allowances and benefits, as well as wider cross-Government actions, rather than paying people directly for the tasks they undertake in the way that an employer would.

[Barbara Keeley]

I want to raise something that has not been raised in the debate and ask the Minister a question. She refuted the point that the Government do not recognise the contribution of carers, but many carers believe that the Government should have, and are missing, a national carers strategy. Such a strategy was launched by the Labour Government, with the backing of our former Prime Ministers, and was ditched by the coalition Government after 2010. Much of what we have covered is about a range of issues that would be better solved with a cross-party ministerial commitment, going up to prime ministerial level, on a national carers strategy. An excellent campaigner, Katy Styles, who has been mentioned in this debate, runs the We Care Campaign for that very thing. It is a real black hole in the Government’s support for carers that there is no national carers strategy. Will the Minister address that?

[Mims Davies]

I thank the hon. Lady for making that point. The right hon. Member for East Ham (Sir Stephen Timms) took us back nearly two decades to 2008, the year that he was Minister of State in the Department holding the welfare reform portfolio. This is not new; this is challenging. The hon. Lady makes an important point, to which I will try to reply in my wider remarks. When we discuss this issue at the Select Committee, I am keen to get to the crux of all the challenges, but that is too wide a subject for this debate.

The hon. Member for Lewisham, Deptford (Vicky Foxcroft) talked about benefit delays and the challenge of the long-standing principle that the carer’s allowance can being awarded only once a decision has been made to trigger a disability benefit to the person being cared for. Carer’s allowance can be backdated, however, to the date from which the disability is payable. I believe about 100,000 people are on PIP and the carer’s allowance. I hope that goes some way to answering her questions.

The hon. Member for Motherwell and Wishaw (Marion Fellows), with her characteristic approach, raised the work being done in Scotland. We will look fully and with interest at the evaluation of the changes that the Scottish Government make. At the DWP, we are supporting those changes, so we will engage on them. That also goes to the earlier point about looking and learning, which is exactly what we should do.

Many hon. Members spoke about young adult carers and the impact of study. We are engaging with the Department for Education and the cross-Government working group is meeting again soon. It is important that carers maintain links with the education system, so that they can receive part-time education and a carer’s allowance. We rightly recognise the aspirations of young carers to not only complete their studies and build a successful career, but be there for their loved one.

That is true not just for young carers: we need to ensure that carers understand that, while caring, they have developed amazing skills that an employer will find invaluable, such as managing finances, the resilience that has been spoken about today, dealing with crisis, organisation and planning, and that level of interpersonal skills. We need to ensure that our young people in particular get the financial support that they need while studying, so they can rightly progress into the career that they want.

On the latest data on overpayments, our most recent statistics are that carer’s allowance overpayments relating to earnings and employment represent about 2.1% of our £3.3 billion of carer’s allowance expenditure, which is approximately £70 million. I welcome the opportunity to discuss that further with the Select Committee later this week.

[Sir Stephen Timms]

Will the Minister respond specifically to my point about the Government’s response to the Select Committee report five years ago? Paragraph 20 says:

“The VEP Service receives the same information Universal Credit…receives from HMRC…A notification is automatically received by VEP when the weekly net pay exceeds the CA”—

carer’s allowance—

“earnings limit…The VEP Service then applies a series of…rules…to determine if a VEP Alert should be sent on to the CA Unit to action.”

It is puzzling that the Department knows when that is being overpaid, but seems not to be doing anything. Why is that?

[Mims Davies]

I was just coming on to overpayments and what has been in the press. I am not the Minister leading on the fraud side of the policy, but we will discuss that on Wednesday. I am keenly looking at it in the round and working with the right hon. Gentleman. There is a lot of interest, but there is always more to matters and more to discuss, although we should refrain from discussing individual cases.

[Debbie Abrahams]

Will the Minister give way?

[Mims Davies]

I will try to answer the point of the right hon. Member for East Ham. There is a need to balance the duty to recover overpayments with safeguards to manage repayments suitably. Claimants have a responsibility to ensure that they are entitled to benefits and to inform us about changes. We have improved customer communications to remind them of the importance of telling us about any earnings, including through the annual uprating letter.

The hon. Member for Lewisham, Deptford mentioned doing a couple of extra hours here and there. Where it can be balanced out using the process that the right hon. Member for East Ham mentioned, and where we can show a pattern, of course we will always respond to that. The right hon. Gentleman is talking about getting upstream of that, but the issue is the expenses that can be incurred; I am sure we will get into the weeds of that on Wednesday. He is right to say that there is a way of understanding that people may be in that situation, but there may be expenses too. I hope that gives him a partial answer.

[Debbie Abrahams]

Could the Minister respond to my query about medical advisers to first-tier tribunals, and the statements that are included in their bundles?

[Mims Davies]

I will take that point away. I am keen to explain more about the National Audit Office and the wider reports on Wednesday; it is quite complicated for this particular arena.

The hon. Member for Cynon Valley (Beth Winter) made a point about the overlap of the carer’s allowance and the state pension—they are both paid as an income replacement benefit. The carer’s allowance replaces an income where the carer is not able to work full time due to their caring responsibilities, while the state pension replaces income in retirement. For that reason, they cannot be paid together to avoid duplicating the provision for the same need. However, if a carer’s state pension is less than the carer’s allowance, the state pension is paid and topped up with the carer’s allowance to the basic weekly rate.

Where a carer’s allowance cannot be paid, the person will keep an underlying entitlement to the benefit. That gives access to an additional amount for carers in pension credit of £45.60 a week, which is just under £2,400 a year. Around 100,000 carers receive that as part of their pension credit award. It is paid to recognise the additional contribution and the associated responsibilities, and means that lower-income pensioners with caring responsibilities can receive more than the lower-income receipts of pension credit. If a pensioner’s income is above the limit for pension credit, they may still be entitled to housing benefit. I would point them to the household support fund and the DWP’s help to claim service.

The right hon. Member for Kingston and Surbiton (Ed Davey) raised a point about young carers. It is challenging to meet the objectives in this wide-ranging area, particularly for young carers and, as we have discussed, there are many objectives that we are trying to meet in different and individual circumstances. The hon. Member for Cynon Valley also mentioned the support from wonderful organisations such as Carers UK, and indeed our constituency offices, to help people to claim. There is now an easy-to-use online claims service for carer’s allowance. Some 90% of people claim that way, and nine out of 10 people are happy with the claims service.

The hon. Member for Wirral West (Margaret Greenwood) spoke about earnings limits. I appreciate that carers are busy and there is a lot going on, but they are told about the earnings limit when they claim. They also get an annual uprating letter reminding them of any changes, and we use a text reminder. I would always ask carers to engage with us if there are any changes in circumstances. We have supported hundreds of thousands of unpaid carers receiving means-tested benefits through the cost of living support, as well as through support for their fuel bills. As I have said, it has been a difficult time.

The hon. Member for Neath rightly raised the 35-hour care threshold and asked how that was decided on. It dates back to 1976, when the carer’s allowance was introduced. At the time, 35 hours was the length of the average working week, and the view was that someone who was caring for 35 hours therefore could not be working full time. That was the basis on which the carer’s allowance support was introduced. She also rightly raised the delivery of carer’s assessments. I will ensure that Ministers in the Department for Levelling Up, Housing and Communities are aware of her concerns.

The carers strategy was mentioned. The Government rightly support unpaid carers, and some of that was covered in the social care plan, “People at the Heart of Care”. Hopefully, I have spelt out today that there is a lot to look at.

The Chair of the Work and Pensions Committee, the right hon. Member for East Ham, mentioned the research. I have been looking specifically at that research, as well as the wider policy, in preparation for this debate. We are carefully considering the right time to publish that. I found it extremely helpful and enlightening; it is genuinely helping policy thought and development.

Before I close—I am certain I am over my time—I remind Members that for many carers doing work who receive universal credit, the 55% taper rate and any applicable work allowance will help ensure that people are better off in work. Ninety per cent of those receiving the UC carer element who are declaring earnings have a work allowance. Those with a disability or, indeed, a child might be in that situation.

I note the Opposition’s commitment to the reform of carer’s allowance. It is the first time that I had seen that, so it is pretty recent. Prior to that, there had been a focus around earnings rules. I will look at what others are promising, because as I said, some of this dates back to 1976, and some of it back more than 20 years. We have spoken about a mixed and challenging picture.

[Vicky Foxcroft]

I am really glad that the Minister has been re-promoted, which we forgot to mention. I am happy to send her all the stuff that the Opposition are looking to do. Of course, we are more than happy if the Conservatives want to pinch some more of our policies in the future.

[Mims Davies]

That was characteristically put; I thank the hon. Lady very much. The Work and Pensions Committee Chair made the point about having an open mind about this policy, and hopefully I have shown today that I very much have an open mind.

The Government appreciate that society relies on unpaid carers. It is the most challenging, fulfilling and difficult job, and we recognise the challenges that they face. We are helping carers to stay in paid work, but there is more to do, as I have spelt out. The opportunity to work with employers in a flexible labour market is appealing, and there is more to build on. We are spending record amounts on carer’s allowance and providing unpaid carers with the help and support they need and deserve. If they are not getting that, please do come and talk to us—our team are there to support them. We will keep carer’s allowance under review, as we do all benefits.