PARLIAMENTARY DEBATE
PIP Changes: Impact on Carer’s Allowance - 27 March 2025 (Commons/Commons Chamber)
Debate Detail
In the Green Paper, we are consulting on how best to support those affected by the changes to eligibility, for example with transitional protections for those no longer eligible for PIP and for the entitlements linked to it, including carer’s allowance, as referenced in the hon. Member’s urgent question, and the universal credit carer element, which is an increasingly important part of the picture. The PIP changes will be implemented from November next year. They will apply to new claimants and to people at their award review after that date, and those with severe conditions who will never work will be protected.
I pay tribute to the millions of unpaid carers across the country. We recognise and value their vital contribution, providing care and continuity of support, including to many people with disabilities. The 2021 census indicated that approximately 5 million people in England and Wales are doing some unpaid care. As the hon. Member knows, we are delivering the biggest ever cash increase in the earnings threshold for carer’s allowance, increasing it by £45 a week to £196, benefiting more than 60,000 carers by 2029-30. Our reforms will build a system that is fairer and more sustainable so that it will always be there for those with the greatest needs to live with the dignity and support that they are entitled to.
The hon. Gentleman referred to couples losing £12,000. I think he must be referring to instances of people who receive personal independence payment and also receive carer’s allowance for caring for their spouse—he is right that there are some instances of that. There are couples for whom that happens both ways. The transitional arrangements we are consulting on, which are referred to in the Green Paper, need to take account of that incidence, but it is absolutely the right thing to do, to ensure that personal independence payment continues in the long term as part of a sustainable benefit system.
We do have to make some reductions, as I think the hon. Gentleman acknowledged. If he has another idea on how that can be done, I am interested to know what it is. By concentrating on those whose impairments are the most severe, which the proposed changes will do, we will be able to ensure that the benefit is there for the long term and that it is sustainable.
The Government had 14 years to prepare their welfare reforms. We had nothing for eight months, and then everything in a rush, because the Chancellor crashed the economy. With growth this year cut in half, inflation rising further, unemployment up, productivity down, debt interest soaring, a record tax burden and 200,000 people being pushed into absolute poverty by the measures taken by this Government, they have had an emergency Budget containing cuts to benefits for disabled people. Perhaps if they were not in such a rush, they would have realised that these crude reforms also impact carers. Some 150,000 people who gave up income to look after a loved one, and who rely on carer’s allowance to make ends meet, are now going to lose it.
The Government are balancing the books on the backs of the people least able to take the weight. That is Labour: making other people pay for the fiasco of their Budget. First they came for the farmers, then for the pensioners, and now it is the carers—the most important people in our society, doing the most important job a human being can do, not for the money but for the love. The least the Government can do is to give them our support. That is what we did in government, so why will they not?
Can the Minister confirm whether carer’s allowance was a deliberate target of the Government’s reforms, or did they not realise the impact of what they were doing to PIP because of the rush they were in? Do they think that taking £500 million from carers while giving above-inflation pay awards to the trade unions is the right priority, and does the Minister share the Chief Secretary to the Treasury’s view that cutting support for carers and disabled people is like taking pocket money from children? Is that what he believes carer’s allowance is—pocket money?
We have a proper plan, set out in the Green Paper. It has been well thought through—as the hon. Gentleman will find if he reads it properly—including a reference to unpaid carers on its very last page. We are well aware of the impact it will have, which is why we are consulting on the transitional arrangements.
There are many good things in the Green Paper that has been brought forward that address some of those points. When I think back to what I had to go through from age 13 to 17, I am also pleased that those benefits will be protected for people in that situation. PIP is also what we call a passporting benefit. Such things as access to the blue badge scheme and carer’s allowance are often dependent on PIP, so one potential implication is that people could be locked out. Will the Minister consider carrying these things forward and meet me to discuss access to the blue badge scheme and carer’s allowance for people who might lose PIP, but would still be entitled to those benefits?
“forge ahead together with the promise of that future in which unpaid carers are visible, valued and supported.”—[Official Report, 3 September 2024; Vol. 753, c. 288.]
That is not how unpaid carers are feeling today. The Minister referred to how the earnings limit for carer’s allowance has increased, but there is still a cliff edge. Are the Government planning to bring forward plans to link the earnings limit to the 16 hours of employment at the national minimum wage? We know that those are some of the things that caused the overpayments for carer’s allowance in the first place.
The impact assessment snuck out yesterday under cover of the spring statement confirmed what the SNP has been warning about for some time. Labour’s austerity cuts will have a devastating effect, with the poorest and most vulnerable in society forced to foot the bill for the Chancellor’s incompetence. Some 150,000 people will be affected by the changes to carer’s allowance, but also—at an absolute minimum—250,000 people, including 50,000 children, will be forced into poverty. These are very modest assessments; I heard the hon. Member for York Central (Rachael Maskell) give a figure of 400,000 people. Labour promised that it would improve living standards, but with the full extent of the damage now spelled out, does Labour’s promise not lie in tatters? What will it take for the Government to change course before irreversible harm is done?
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