PARLIAMENTARY WRITTEN QUESTION
Carers: Cost of Living Payments (24 June 2022)

To ask the Secretary of State for Work and Pensions, whether she has plans to extend the £650 cost of living payment to carers who are in receipt of Carer’s Allowance but are under state pension age and do not receive a means tested benefit.

Asked by:
Karin Smyth (Labour)

This Government recognises and values the vital contribution made by carers every day in providing significant care and continuity of support to family and friends, including pensioners and those with disabilities.

The weekly rate of Carer’s Allowance increased to £69.70 in April 2022. This means that since 2010 it has increased from £53.90 to £69.70 a week, providing an additional £800 a year for carers through Carer’s Allowance. Real terms expenditure on Carer’s Allowance in 2022/23 is forecast to be £3.4bn and between 2022/23 and 2026/27 is forecast to increase by just over a third (around £1.2 billion). By 2026/27, the Government is forecast to spend just over £4.5 billion a year on Carer’s Allowance.

Carers on low incomes can claim income-related benefits, such as Universal Credit and Pension Credit. These benefits can be paid to carers at a higher rate than those without caring responsibilities through the carer element and the additional amount for carers respectively. Currently, the Universal Credit carer element is £168.81 per monthly assessment period, and the additional amount for carers in Pension Credit is £38.85 per week.   Around 405,000 (Feb 2022 data) carer households on Universal Credit can already receive around an additional £2,000 a year through the Carer Element.

Nearly 60% of carers on low incomes who are of working age and on Carer’s Allowance claim an income-related benefit through which they will be entitled to receive a £650 Cost of Living Payment (split over two instalments - the first one of £326 payable from 14 July). The £650 Cost of Living payment is being targeted at low income households who are in receipt of a means-tested income replacement benefit. There are no plans to amend the qualifying benefits for the Cost of Living Payment or to introduce payments for higher income households over and above what has already been announced.

Six million people in receipt of an eligible disability benefit will also receive the £150 Disability Cost of Living Payment. This includes carers who are themselves in receipt of a qualifying benefit.

All Carer’s Allowance recipients who are domestic energy customers will receive a £400 rebate through the Energy Bills Support Scheme.

All Carer’s Allowance recipients in England who pay Council Tax should have received a £150 rebate.

In addition to support people who need additional help, the Government is providing an extra £500 million of local support. In England this will be via the Household Support Fund, which will be extended from this October to March 2023 backed by £421m.

The Household Support Fund helps those in most need with payments towards the rising cost of food, energy, and water bills. The government will issue additional guidance to Local Authorities to ensure support is targeted towards those most in need of support, including those not eligible for the Cost of Living Payments.

Answered by:
Chloe Smith (Conservative)
29 June 2022