Memorandum submitted by the Scottish National
Carer Organisations (NCO)
The NCO comprises: Carers Scotland, Crossroads
Scotland, Shared Care Scotland, The Princess Royal Trust for Carers
and the Coalition of Carers in Scotland.
1. EXECUTIVE
SUMMARY
1.1 If the contribution of carers to society
and the economy is to be fully recognised and supported, it
is vital that unpaid carers are effectively supported with adequate
finance through the existing benefits, tax credits and pension
systems, whilst also having the opportunity to participate in
working life.
1.2 At an individual level, carers want
to see a simplified financial welfare system. Carers also want
benefits advice to be broadened into "financial planning"
which better enables people with caring responsibilities to make
sound financial decisions, and potential carers to take positive
steps in planning the financial impact of care.
1.3 Some carers are capital rich and income
poor, many require debt management advice and many balance caring
income and work income. Often carers are involved in managing
multiple, interdependent income streams for themselves and those
they care for, and therefore longer term financial planning
is essential.
1.4 A major challenge for the future is
how to enable people to balance care and other responsibilities,
especially work. Few carers report a positive experience of being
supported to balance work and care. There is an urgent need
to increase awareness amongst employers and their representative
bodies (eg trade associations, industry bodies) about the personal
and collective contribution made by carers, and the range of measures
which employers might consider introducing to assist unpaid carers
of working age to balance work and care.
1.5 The impact on carers of providing substantial
care is a reduction in their ability to work, their disposable
income and their capital. Importantly, this also affects their
ability to contribute to a pension, whether state or private,
thus increasing the likelihood of carers facing greater poverty
in later life. In particular, the "overlapping benefits
rule", where Carers Allowance is withdrawn at pension age,
is particularly harsh and unjust and should be reviewed.
2. REFERENCES
Notations (Ref 2.XX) in the text refer to the
following publications:
2.1 "Without Us? Calculating the
value of carers' support" Carers UK 2002.
2.2 "The Future of Unpaid Care in
Scotland" Scottish Executive, 2006.
2.3 "Caring and Pensioner Poverty",
Carers UK, 2005.
2.4 "Women and Pensions, the evidence",
Department for Work and Pensions, 2005.
2.5 "Department for Work and Pensions,
Dealing with the complexity of the benefits system",
National Audit Office, November 2005.
2.6 "Caring on the Breadline: the financial
implications of caring", Carers UK, 2000.
3. INTRODUCTION
3.1 The Government's National Strategy for
Carers, published in 1999, acknowledged the key role that carers
play in supporting individuals in the community and the need to
ensure that carers were properly recognised and supported.
3.2 The contribution of carers cannot be
underestimated. Nationally there are around 6 million carers who
currently save the government an estimated £57 billion per
annum. They are instrumental in maintaining older and disabled
people in their own homes and communities, in preventing admissions
to hospital and nursing care and in facilitating early discharge
from hospital. Further, research suggests that the number of carers
is likely to increase in the future, with demographic and community
care policy changes necessitating a 60% rise in the number of
carers needed by 2037—an extra 3.4 million carers. (Ref
2.1)
3.3 Research shows that the financial effects
of caring are significant. One in three carers struggle to pay
essential bills and more than one in five cut back on food to
make ends meet. The main reasons given by carers were the additional
costs of disability followed by having to give up work in order
to care. After five years of providing substantial care, carers
were significantly more likely to be in receipt of Income Support.
4. CARERS IN
SCOTLAND
4.1 In 2004 the Scottish Executive commissioned
the Office for Public Management (OPM) to undertake a research
project on the future of unpaid carers in Scotland. The project
was undertaken between October 2004 and August 2005. The research
included consultation with more than 4,000 carers and the report
was published in February 2006 (Ref 2.2). The research results
confirmed many of the findings of earlier studies which had smaller
sample constituents. The following paragraphs summarise the findings
relevant to your inquiry.
4.2 Most carers felt that not enough was
being done by the Scottish Executive to support and recognise
carers. Carers felt they were treated with suspicion by the system
and were continuously put through endless bureaucratic hoops,
being required to fill in complicated and repetitive forms.
4.3 Carers had different perceptions of
the effectiveness of policies to support carers, depending on
their age. Elderly carers felt there was little consideration
for their plight, in particular once they achieved pensioner status.
Many elderly carers experienced financial hardship, because of
the extra cost imposed on them because of their caring role, and
the fact that they did not qualify for a Carers' Allowance when
receiving a pension of greater value. Some elderly carers felt
they were penalised by the system.
4.4 Many carers had grave concerns about
their financial future, in particular when they had been a sole
care provider, had been caring for a number of years and were
therefore less able to seek full-time employment. They felt the
government was not supportive in recognising their contribution
and therefore ensuring financial security for them once they reached
retirement age. Furthermore, the ceiling placed on part-time work
when in receipt of a Carers' Allowance also limited carers' quality
of life.
4.5 The vast majority of participants in
the study were women and they were concentrated almost exclusively
within part-time work, and in particular in the traditionally
low-paid occupations in which women tend to be over-represented.
Their occupations included child minding and other formal care
roles, sales assistants, sessional youth work and community work
that allowed participants flexibility on a day-to-day basis. In
this sense, employment and career trajectories were often shaped
by caring responsibilities, or decisions were made by carers to
stay in a particular job because the organisation of work fitted
into the rhythms of the caring and family life.
4.6 Male participants who shared the caring
responsibility with their partners tended to work full time. However,
where they had sole responsibility, balancing full time work and
care was impossible. Moreover, the cost of childminders actually
cancelled out the financial advantage of working.
4.7 Carers emphasised that they enjoyed
working, because it allowed them to be themselves and provided
an essential outlet to allow them to carry the emotional burden
of caring. Only a minority of employers in the study seemed to
be supportive of carers, and most of this support was informal,
on the basis of goodwill, where the employee was either a friend
of the employer, or where a good working relationship had developed
over a number of years. There were two examples of larger employers
providing flexible work opportunities for carers: one was a leading
bank, and the other was the Post Office. It is, however, unclear
whether this was part of a deliberate policy towards carers, or
part and parcel of normal flexible working arrangements.
4.8 Carers in rural areas felt that little
attention was given to accessibility and affordability of services
such as transport. In some rural areas, such as Eastern Ross,
some have started innovative schemes such as an informal taxi
service, run by the local community, which is more affordable
than a formal taxi service and more regular than public transport.
5. FINANCIAL
IMPACT OF
CARING
5.1 Sheffield Hallam University carried
out research in 2005. They consulted 848 carers aged 60 years
or over. Their report was published in December 2005 (Ref 2.3)
and the following findings are relevant.
5.2 Income is a key issue for carers over
the age of 60. This report reveals that:
— one third of carers had left work
early or retired early because of their caring role;
— one in six felt that their pensions
had been affected by caring;
— leaving work early had impacted hard
on the pensioner's quality of life leaving two thirds worse off;
— one in 10 carers were cutting back
on food to make ends meet;
— nearly seven out of 10 carers were
cutting back on something such as clothes, nights out, holidays,
etc;
— one quarter of respondents were in
receipt of Pension Credit;
— carers in receipt of Pension Credit
were more likely to report feeling marginally better off than
those not in receipt of the benefit;
— carers were more likely to be in
receipt of Pension Credit if they had given up work to care. Given
the very low levels of participation in the labour market of carers
of this age, they are more likely than other groups to be entitled
to Pension Credit;
— one in seven carers had been put
off claiming benefits because of lack of information; and
— employment is still a key issue for
carers over the age of 60—they were three times less likely
to be in employment compared to non-carers of the same age.
5.3 The Government's own research for Women
and Pensions (Ref 2.4) highlights the importance of claiming benefits.
By not claiming the benefits they are entitled to, carers may
miss out on vital income that could help ends meet, but they also
miss out on protecting their pensions in the future. Carer's Allowance,
the main carer's benefit, helps protect a person's state pension
and State Second Pension records. A staggering 390,000 carers
are not currently building up rights to a basic state pension.
This report makes a strong case for ensuring that those who provide
such valuable care are ensured a secure income in retirement whether
it is through remaining in work or through Government support
if they are not in employment.
5.4 The benefits system is extremely complex
and it is easy for carers to miss out. Around 2 million people
become carers every year. Many of these people do not know they
are entitled to claim certain benefits and the claims process
is also complex. A carer needs to claim Carer's Allowance first
via the Carer's Allowance Unit. They are often turned down because
of the overlapping benefit rule, but they may still secure underlying
entitlement which then allows them to apply for the Carer Addition
to Pension Credit. However, they then need to apply for this through
the Pension Service. Some carers who have previously been turned
down for Pension Credit might become eligible if they are entitled
to the Carer Addition. They would need to reapply for the Pension
Credit in these circumstances. As these examples demonstrate,
the system is complex and carers need the right information to
ensure that they claim what they are entitled to. Many are missing
out.
5.5 The National Audit Office highlighted
precisely these complexities and urged the Department for Work
and Pensions to tackle them. (Ref 2.5).
5.6 Earlier research resulted in the report
" Caring on the Breadline" (Ref 2.6). Key findings highlight
the financial impact of caring. A large proportion of carers who
provide substantial amounts of care live on the breadline. Most
were in receipt of benefits:
— one in three respondents are in receipt
of Income Support;
— almost all respondents of working
age were in receipt of Invalid Care Allowance; and
— nearly six out of 10 carers live
in workless households.
5.7 Carers have an extremely low level of
savings, making these carers very vulnerable to debt:
— nearly one in three carers did not
have any savings at all; and
— one half of all the carers had less
than £1,000 in savings or none at all.
5.8 Carers said that their financial circumstances
had become worse since becoming a carer.
64% attributed this to the extra costs of disability.
68% had to give up work to care, resulting in a drop
in income.
37% found the level of charges caused financial difficulties.
5.9 The effect of this financial hardship
is clear. Carers providing substantial amounts of care struggle
to pay for even the basics:
— one in three are having trouble paying
the gas/electricity or telephone bills;
— one in three carers are, or have
been in debt;
— one in four carers had had to ask
friends and relations for financial assistance;
— more then one in ten carers cannot
afford to pay the rent or mortgage; and
— two in five carers cannot afford
essential repairs to their home.
54% of carers said that they have to spend their
income or savings to meet the costs of alternative care.
5.10 Access to certain goods and activities
is considered to be an indicator of quality of life. Carers are
cutting back on essentials as well as quality of life activities:
— 79% of carers have given up holidays.
— 76% have cut down on leisure activities.
— 64% have reduced expenditure on clothes.
— 22% are cutting back on food.
Taking a holiday is twice as expensive as carers
also have to pay for alternative care. Carers' comments also went
much further, detailing how they would go without haircuts, take
fewer baths, reduce the number of hot meals they prepare and buy
"out of date" food in order to make ends meet.
5.11 Carers find transport costly, whether
they are maintaining a car or having to use public transport.
Many carers spoke about their dread of the car breaking down.
Other carers, too, were concerned about not being able to afford
to replace key items such as the washing machine. Many carers
with children detailed the harsh effect of their financial difficulties
on their children.
6. EMPLOYMENT
ISSUES
6.1 A key theme running through all the
research is the impact of caring on employment. (See paras 3.3,
4.4 to 4.7, 5.2, 5.6 and 5.8). The initial theme of the Government's
welfare reform programme was "Work for those who can... Support
for those who can't". The research shows that carers in employment
and carers who want to work, have not had the support they need
to enable them to meet their caring responsibilities and maintain
their working life.
6.2 One in fiv e carers have to give up
work. More than half of those caring for 50 hours or more have
given up work to care. For those who remain in employment there
is still an impact on their finances eg 70% of carers say their
earning have been affected by caring with an average loss of £6,000
each year. Finally, those who have given up work to care lose
not only earnings but also the ability to save for pensions, contributing
to poverty now and in the future.
7. WELFARE REFORM
7.1 It may be useful for the committee to
focus particularly on the impact of the Government's welfare reform
programme. They say that their values of equality, opportunity,
fairness and social justice underpin the principles of their welfare
reform programme. The Government "will provide support, nationally
and locally, and help individuals fulfil their potential. By providing
security and stability, we will assist individuals, and, therefore,
our broader society to respond to the challenges of demographic
change and globalisation. We aim to remove fear of change, and
support people through the many transitions they face throughout
their lifetime. The foundations we help build will widen economic
opportunity, support improvement in productivity and prosperity,
and assist with continuing economic growth and social inclusion."
7.2 The Government say "social progress
and economic prosperity go hand in hand" and we agree with
that view. The core principles of the programme are to:
1. Help people to help themselves by offering
a ladder to self-reliance and self-determination, not merely a
safety net in time of need.
2. See work as the best route out of welfare.
3. Promote understanding and enable people
to make informed choices for themselves.
4. Balance rights with responsibilities,
while recognising the need for support and care where appropriate.
5. Recognise our mutual interdependence and
obligation to each other, promoting solidarity between generations,
and the importance of using the resources of Government to help
people cope with rapid economic and social change.
6. Ensure the role of the state is active,
liberating and enabling.
7. Address the root causes of poverty and
overcome intergenerational disadvantage and exclusion.
8. Contribute to a stable and growing economy
through investment in the potential of every individual, and flexibility
of support in and out of work.
7.3 The huge body of research that has been
built over many years shows that much more work has to be done
to convince carers that these principles have been applied to
the support made available to them.
7.4 In the House of Lords on 13 June 2000
Baroness Hollis of Heigham, for the government, said... "However,
I believe that the costing in the report, Caring On the Breadline—my
noble friend Lady Pitkeathley will correct me if I am wrong—is
about £34 billion. That is the estimate of the value of carers'
work to our community. That is a higher figure than the entire
sum spent on retirement pensions and about 50% more than we spend
on all NHS hospitals. That gives some idea of the scale of indebtedness
of our society to carers."
7.5 As part of the welfare reform programme
we would urge the Government to act on two key recommendations
in the Scottish Executives report (Ref 2.2).
"Recommendation 14: We recommend
that the UK Government complete an early review on carers' benefit
entitlements, tax credit and pensions with a particular focus
on removing the barriers to work which are inherent in the way
current financial arrangements are constructed.
Recommendation 15: We recommend that
the UK Government should develop a national awareness campaign
to ensure that employers of all sizes are made more aware of both
their roles and their responsibilities towards carers, and the
overall contribution of unpaid carers.
This should be in line with the Equal Opportunities
Commission's priorities which are:
— better access to flexible working
arrangements;
— better framework of employment rights
for carers; and
— a pensions framework that does not
penalise people for the time spent caring. A range of measures
should be considered by the Government, in partnership with employer
and industry representative bodies, to enhance the understanding
of employers in order to enable unpaid carers to balance work
and care."
Dave Clark
Policy Development Manager
Princess Royal Trust for Carers
October 2006
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