The UK Government’s benefit reforms are a devastating blow for carers as well as disabled people – this is why

The reforms proposed by the Government to disability benefits are a devastating blow not only for many disabled people, but also for the people who care for them.

By the Government's own estimates, carers for disabled people will face a £1.1 billion decline in financial support by 2029/2030 due to these changes.  

That’s a hammer blow to the finances of many households where carers are looking after disabled relatives. It’s no wonder the proposed reforms are striking fear into the hearts of disabled people and their carers. 

One of the primary concerns revolves around the proposed changes to Personal Independence Payments (PIP) – a financial lifeline for disabled people. The threshold for receiving PIP would be raised to the extent that only “the most disabled” would be able to claim it.  

The reason the proposed changes will have such a terrible impact on carers’ finances as well as those of the disabled is because PIP is one of the "passport" benefits that allows a carer to claim Carer's Allowance.  

That means any tightening of eligibility criteria for PIP for disabled people would result in their carers losing their own Carer's Allowance. The number of carers that stand to lose out are huge. Currently, as many as half of Carer's Allowance claimants care for someone receiving PIP. 

Additionally, there are 150,000 people who claim both PIP and Carer's Allowance. All these people could now be at risk of losing either one or both of those payments.  The impact of that would tip some households over a financial cliff edge. 

Then there are the 28% of all carers who are disabled themselves. These are carers who may currently receive PIP but do not qualify for Carer’s Allowance. They may be at huge risk of losing their financial support. 

Exacerbating financial vulnerability 

Carers and disabled people are already among the most financially vulnerable groups. The changes to PIP and the reduction in benefits will exacerbate the already severe financial hardships being faced by carers and the people they care for. 

One of Carers Trust's priorities is to end carer poverty. Carers are already a financially vulnerable group, with 28% of them living in poverty compared to 20% of the wider population. People from lower-income backgrounds are likely to provide more care, and carer poverty can also rise depending on your ethnicity or gender. 

Carers Trust has long been clear that Carer’s Allowance needs complete reform. But despite its huge inadequacies, Carer’s Allowance is still a lifeline for around 1 million carers across the England and Wales. The government should be taking steps to increase the financial support available to carers – not reduce it.  

Employment Support for Carers 

The Government’s reforms are meant to be about helping people into work alongside cutting costs. Yet the cost to the economy of carers being out of work is now estimated by the Government itself to total  a massive £37 billion every year.

This substantial sum underscores Carers Trust's longstanding call for more tailored support for carers who wish to move into paid employment or increase their working hours. 

Currently, carers who are in work tend to be in lower-paid or part-time employment that can be fitted around their caring responsibilities. The Government's research shows only 16% of people on Carer's Allowance are also in paid work. However, the changes outlined so far do not seem to support carers in finding employment.  

The Department for Work and Pensions (DWP) has previously found that 70% of carers on Carer's Allowance are not in employment due to the time required by their caring role.  

To support carers into work, the government needs to put into place specialist employment support for carers and ensure there is social care in place for the people they care for.

Fighting carer poverty 

The Government is aware its reforms are likely to have an impact on carers. Its published proposals specifically highlight carers and include a commitment to consider the impacts on benefits for carers as part of its wider consideration of responses to the consultation.  

We urge the UK Government to make sure it examines closely the impact of its reforms on carers. If they don’t, carers and the people they care for are at risk of being pushed further into the financial abyss.

Mitigations must also be put in place to protect carers from these potentially devastating changes. Carers Trust will work closely with the Government to ensure the voices of carers are heard and to develop strategies to protect carers from these changes. This will be our priority in the weeks and months ahead. 

If you’d like to help Carers Trust tell carers' stories and concerns about these reforms and proposals, you can:  

Email the Media Team here at Carers Trust. If you’re willing and able to have your story shared in the media or on social media, please do get in touch. Our team will support you every step of the way to share your thoughts in a way that suits you and that you are comfortable with. 

Email the Policy Team if you’d like to be kept informed about opportunities to shape our response.