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Usdaw calls for a fair deal for working carers

Date: 18 June 2010

The shopworkers union Usdaw is calling for a fair deal for the UK’s army of working carers in next week’s emergency budget.

'Usdaw General Secretary John Hannett has written to the Chancellor George Osborne and Carers Minister, Paul Burstow, setting out the case for changes in the benefit system that would allow working carers to earn more money before losing their entitlement to Carers Allowance.

Usdaw has also written to all Members of Parliament asking them to support an Early Day Motion (EDM) tabled by Rosie Cooper MP, which celebrates the £87 billion contribution made to the economy by the UK's 6 million carers.

The EDM also calls on the Government to help the 3 million carers who have to juggle their caring commitments with full or part-time work and backs Usdaw's call for changes in the benefit system.

Under current rules, carers who look after someone for more than 35 hours a week are entitled to a Carers Allowance of £53.90 a week, but if the carer earns a penny over £97 a week, all Carers Allowance is withdrawn.

This cliff edge creates a massive disincentive to the many working carers who need or want to work more hours or find a better paid job. Many working carers end up taking only low paid jobs or keep the hours they work deliberately low to avoid losing their entitlement carers allowance.

 

John Hannett, Usdaw General Secretary said:

"Usdaw wants the Coalition Government to uphold the commitment of the 2008 National Carers Strategy that no carer should face financial hardship as a result of their caring role.

We also want the coalition to stand by the recommendation of the Work and Pensions Select Committee that the Government should support people who want or need to combine work with their caring commitments.

Thousands of Usdaw members combine their caring responsibilities with work yet many continue to suffer severe financial hardship as a result. Usdaw understands that there needs to be rules about who qualifies for carers allowance but when you do qualify then those who care should not be penalised for going out to work to provide a better life for themselves or their families"

 

Usdaw is calling for Carers Allowance to be increased to £65.45 a week, the same rate as Job Seekers Allowance and for the £97 earnings limit to be increased to £150 a week.

Usdaw also wants to see Carers Allowance tapered at the same rate as tax credits (39%) which taken with the above would mean that all full-time carers earning up to £300 would be provided with some assistance.

Notes for Editors:

1. Usdaw (the Union of Shop, Distributive and Allied Workers) is the UK's fourth biggest trade union, with over 386,000 members. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemicals and other trades .

2. EDM 246 says:
That this House celebrates the valuable role performed by over six million carers in the UK, in the majority of cases without any financial recognition from the state, saving the country an estimated £87 billion per year; congratulates Carers UK for the valuable work they do in supporting carers and highlighting their needs during Carers Week; further congratulates the Union of Shop, Distributive and Allied Workers (Usdaw) for their continued campaigning for a better deal for working carers; recognises that many carers need to work to make ends meet because Carer's Allowance only pays £53.90 a week for a minimum of 35 hours caring, urges the Government to match the commitment of the 2008 National Carers Strategy to ensure that carers are not forced into financial hardship by their caring role, and support the recommendation of the House of Commons Work & Pensions Committee 2008 report that 'DWP should support adults who become carers during their working lives to combine work and care'; therefore calls on the Government to remove the disincentive to work represented by the cliff-edge earnings threshold of £97 per week that prevents many carers from working at all and stops those in working from fulfilling their full working potential.

3. Millions of people combine work with caring responsibilities: 8 out of 10 carers are of working age (16-65) - around 4.8 million people. Of these, over 3 million juggle care with work - over 1 in 8 workers in the UK. 2 million are in full-time work and 1 million part-time.

4. Caring responsibilities significantly damage people's ability to work: an Equal Opportunities Commission survey in 2004 found that 1 in 5 carers had been forced to give up work altogether. Many more carers have to cut their hours or take up a position for which they are over qualified. The survey found that carers lost on average £11,000 a year because of this.

5. Carers suffer financial hardship: the Carers UK 2008 report 'Carers in Crisis', showed that 74% of carers struggled to pay essential bills and 52% were cutting back on food to help make ends meet. 54% were in debt as a result of caring, and 32% with a mortgage or rent said they could not afford to pay it.

 

For more information visit the 'Supporting Parents and Carers Campaign' area.