There are around 800,000 unpaid carers in Scotland (1), marking a 27.5% increase over the past decade (2). Carers may look after elderly parents, disabled children, a sick partner, or sometimes all three. The majority of carers in Scotland took on their roles because no other care options were available(1). More than half report that their finances and savings have been negatively impacted by their caring responsibilities, with over a third (36%) already struggling to make ends meet. Additionally, a fifth (20%) face difficulties with food bills, and 17% with utility bills. (3)
In today’s budget, the Chancellor, Rt Hon. Rachel Reeves MP, announced an increase in the earnings limit for carers:
The weekly earnings limit for Carer’s Allowance will be increased to 16 hours at the National Living Wage, worth an additional £45 a week from April next year, making over 60,000 carers eligible for support, and helping carers to balance work and caring responsibilities. This is the largest ever increase to the earnings limit and provides certainty for carers with a commitment that the earnings limit will increase with the National Living Wage in the future. (4)
This change will be welcome news for the thousands of unpaid carers in Scotland who work 16 hours or less per week at minimum wage, will receive an additional £81.90 weekly, along with the Scottish Carer’s Supplement. This year’s supplement is £288.60, paid twice annually, typically in June and December.
To claim Carer Support Payment, which will be rolled out across Scotland next month, you must meet the following criteria:
- Be 16 or over
- Usually live in Scotland
- Provide care for 35 hours or more a week, including cases where care is provided every day
- Earn no more than £151 per week after tax, National Insurance, and expenses.
- The person you care for must also be receiving certain disability benefits.(3)
If you are in receipt of the Carer Support Payment or Carer’s Allowance, you will automatically receive the Carer’s Supplement if eligible on the qualifying date, 7 October 2024, for the upcoming December payment.
In October 2022, around 85,000 carers qualified for the Carer’s Supplement.(4) While today’s announcement will be welcome news for working carers, those supplementing their income with Universal Credit or caring for someone not living with them may see little to no increase, and it may even negatively impact the income of the person they care for.
Social Security Scotland advises:
Before you apply for Carer Support Payment, discuss your application with the person you care for, if possible. Explain how your application may affect their benefits. For example, their severe disability premium will stop automatically.
You also need to tell them that they need to tell their local council about your Carer Support Payment award if they get:
- Housing Benefit
- Council Tax Reduction (5)
If you are among the 475,000 (6)households in Scotland claiming Universal Credit, you may see little to no increase in income, as Universal Credit deducts Carer’s Support Payment or Carer’s Allowance pound for pound. However, you may qualify for the carer element, an additional Universal Credit amount, without claiming Carer’s payments.
If you receive Universal Credit for ill health and have been assessed with Limited Capability for Work (LCW) or Limited Capability for Work-Related Activity (LCWRA), you will receive the higher payment but not the carer element. If you are part of a couple and receive LCW/LCWRA, your partner may claim the carer element instead. (7)
As with claiming Carer Support Payment/Carer’s Allowance the person you are claiming the carers element for can lose any Severe Disability Payment they may have which can affect their income including Housing Benefit and Council Tax Reduction. (8)
Any additional income you earn through extra hours will also be subject to the tapering rule, whereby 55p for every £1 earned is deducted from your Universal Credit payments.
The positive of claiming Universal Credit as a carer means you should not have to meet any of the work requirements, this should be noted on your claimant commitment.
It is not just the financial impact that caring has on carers, the majority of carers reported a “negative effect on their mental health and wellbeing”,(2) with over a third “reporting thoughts of self-harm or suicide earlier this year”. (2)
Respite options are available through charities, which may offer funding for holidays or time-to-live funds, as well as through your local council.
For emergency respite care, please contact your local social work department.
You can reach out to your local carer centre for support. Additionally, your local social work service can provide an Adult Carer Support Plan or Young Carer Statement, where you can include a need for short breaks. More support is available from Care Information Scotland and Carers UK.
Sources: