The Resolution Foundation urges an overhaul of the carer's allowance to lift unpaid carers and disabled individuals out of financial hardship. It emphasizes that unpaid carers incur significant financial penalties, losing 10% of income compared to non-carers. Currently, the allowance is the lowest at £83.30 per week, which should be raised to at least £92.05. The thinktank also recommends removing the earnings cap of £196, which discourages part-time work. Approximately two-thirds of unpaid carers experience material deprivation, indicating that current benefits are insufficient to cover essential costs.
The Resolution Foundation reported that unpaid carers on low incomes face a heavy financial penalty, losing an average of 10% of their income compared to non-carers.
The thinktank advocates for increasing the carer's allowance from £83.30 a week to at least £92.05 per week to support low-income unpaid carers.
There are calls to remove the cliff-edge penalty on carer's allowance claimants' earnings, set currently at £196 a week, to allow for part-time work.
Resolution highlighted that about two-thirds of unpaid carers face material deprivation, struggling to afford essentials like food and energy on inadequate benefits.
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