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Work and Pensions Committee calls for replacement of the current ‘outdated’ system of benefits for carers

On 29 August 2008 the Work and Pensions Select Committee published its Fourth Report of Session 2007-08, entitled “Valuing and supporting carers” (HC 485).

The report finds that people providing unpaid care for relatives and friends save the public purse an estimated £87 billion each year.

At the same time most informal carers are of working age, and sustaining their ability to remain in work, or to return to work after a period of caring, is essential both to the Government’s target of reaching an 80% employment rate and to employers who can not afford to lose their valued skills.

The report concludes that the current system of benefits for carers is outdated and recommends:

• the introduction of a two tier system of support for carers, offering:

1. a care support allowance - non means tested income replacement support, paid at the same rate as jobseeker's allowance, for carers unable to work, or working only part-time
2. a caring costs payment - compensation of between £25 and £50 per week for the additional costs of caring for all carers in intensive caring roles (this could also be paid to those over state pension age)

• a review of

1. the education rules affecting carers
2. the carers earnings rules 
3. the overlapping benefits rules (greater streamlining)
4. employee rights with regard to flexible working
5. the working tax credit rules to allow those providing care of 16 hours or more a week to claim

• adopting a "light touch" and personalised approach when providing support for employment and support allowance claimants who are also providing care (one fifth of current incapacity benefits claimants are carers)

More information

• about carers allowance
• carers at the heart of 21st century families and communities - The carers' strategy sets out the Government's short-term agenda and long-term vision for the future care and support of carers.
• carer wins her discrimination case in the european court of justice - European Court of Justice ruling that direct discrimination and harassment of an employee is not limited to people who are disabled.
• no one written off: reforming welfare to reward responsibility - welfare reform green paper, which contains proposals for carers
• work and pensions select committee fourth report of session - link to full report

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