3 Million Carers to Lose Out in 10p Rate Cut

11.48.48am BST (GMT +0100) Thu 24th Apr 2008

Carers face tough times ahead under new tax rules

People caring for elderly, sick or disabled relatives will lose out under new tax rules, according to Hazel Grove MP, Andrew Stunell. Because those claiming Carer's Allowance are only allowed to earn a certain amount each week, they are likely to fall into the group affected by the abolition of the 10p tax rate.

"Carers provide an invaluable resource to society through their dedication and hard work," the local MP said. "They have precious little thanks as it is and now the Government is planning to make it even harder for them to make ends meet."

Now Mr Stunell has tabled a motion in Parliament challenging the Government to find a way to local carers left worse as a result of last year's budget.

"Many carers are in a Catch 22 situation over benefits. To qualify for the Carer's Allowance, they have to work less than 17 hours a week, but if they wanted to claim Working Tax Credits to make up for the tax hike, they would have to work more than 30 hours a week!

"Most Carers look after adults and so they can't claim Child Tax Credits either. They are in a trap, and doubling their tax rate to 20p in the pound really knocks them when they are down."

ENDS

Notes to editors:

1. Andrew Stunell has tabled the following Parliamentary Motion:

That this house notes that Carers' earnings cannot exceed £95 net per week in order to qualify for the Carer's Allowance benefit, that maximum individual earnings combined with the Carer's Allowance equates to only £7,568 per annum, and as a result, working Carers are in the group affected by the abolition of the 10 percent tax rate; further notes that most Carers care for adults and are thus not entitled to Child Tax Credits, nor do they qualify for Working Tax Credits because they can't work the requisite hours; believes that Carers make an invaluable contribution to society; and urges the Government to take the opportunity when publishing its forthcoming National Strategy for Carers to help those Carers made worse off as a result of last year's budget.

2. The term 'carer' is used to distinguish those who provide care for others on an unpaid basis, apart from those who are paid (care workers, home helps and people employed by someone with a disability).

3. One in eight (1 in 8) adults are carers, which is approximately six million people.

4. Carers save the economy £87 billion per year, an average of £15,260 per carer.

5. 5,000 is the number of working carers estimated to be living in the Hazel Grove constituency.

6. The main carer's benefit is £50.55 for a minimum of 35 hours, equivalent to £1.44 an hour.

7. Every day, another six thousand people take on a caring responsibility.

8. Over 3 in 5 people in the UK will become carers at some time in their lives.

9. For more information please see http://www.carersuk.org/Home.