Overhaul of care pay system needed

A number of MPs are suggesting that relatives who care for the sick and elderly should receive a salary of up to £110 a week, saying that the system of benefits for unpaid carers is in need of radical overhaul.

Almost six million such carers in the UK save the taxpayer £87bn each year. However, there are many more people in positions of care who believe that they are only doing duties of normal family life, but, in so doing, are suffering financial hardship from reduced paid working hours or lower paid jobs, and thereby miss out on pension contributions too.

Support group Carers UK calculate that 75% of carers lose around £11,000 a year in this way, and their roles also have the added problems of physical and emotional stress.

Proposals by the Commons Work and Pensions Committee say that anyone providing care for a minimum of 35 hours a week should receive £60.50 as 'income replacement'. Currently the carer allowance is £50.55 a week, but this is not available to anyone receiving a state pension.

In addition carers could still earn up to £95 a week from paid work. Then, a second benefit of £25 to £50 a week, for caring costs, would be available to all carers, including those on a state pension.

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