Financial wellbeing, care and caring
Giving, receiving and paying for care can have significant implications for individuals’ financial security, wellbeing and inclusion.
Giving, receiving and paying for care can have significant implications for individuals’ financial security, wellbeing and inclusion as well as wider social and economic consequences. We continue our work on this key social policy issue and examine what more can be done to prevent or mitigate the financial and personal costs.
Parliamentary Policy Breakfast: The Case for reform of Carer’s Allowance
Dr Louise Overton and Dr Maxine Watkins, with their colleagues from the Centre for Care, contributed evidence[1] to the debate on the urgent need for Carer’s Allowance reform at a roundtable event in parliament hosted by Steve Darling MP on 10th June.
With powerful and moving testimonies from people directedly affected by the personal and financial cost of caring, the research team went on to highlight the longstanding issues with Carers Allowance which has changed very little since its introduction in 1976. Its low value (at just £83.30 a week) restrictive earnings and education thresholds (no more than £196 a week and not in full time education) as well as the fact that nearly a third of claimants receive no payment due to the overlapping benefits rule mean that Carer’s Allowance is not fit for purpose in the 21st Century. We heard about the implications of this first hand from Leanne (unpaid carer) who receives Carer’s Allowance but has the exact same amount deducted from her Universal Credit, and Alison (unpaid carer), who no longer receives Carer’s Allowance since reaching state pension age despite the fact her adult son’s care needs have increased.
As we continued to debate and discuss the issues (with representatives from Carers UK, Carers Trust, Resolution Foundation and Women’s Budget Group, among others), examining alternative approaches from Scotland, Ireland and Australia, there was consensus on the need to give carers the proper recognition they deserve. Carers save the state an estimated £184 billion each year[2], so is there is a clear economic case. That aside, a fair and just society should not expect carers to continue shouldering the immense pressure of looking after family members and friends with health problems and disabilities without adequate support.
Care Confidence
Care Confidence is a free, online care planning resource that helps older people figure out what care and support might work for them and how to pay for it. Dr Louise Overton, Dr Maxine Watkins and Dr Emily Harle were part of the research team led by the University of York where it was developed with expert input from people who self-fund social care and carers. People can use Care Confidence now, but for people who might want extra help to make the most of it, our colleagues at York are launching Care Confidence in Action. In this new project, local authorities, community providers, practitioners and members of the public will work together to find ways to ensure Care Confidence can help as many people as possible.
CHASM's Dr Maxine Watkins at Greenwich Carers Centre, with Helen Walker (carers UK CEO), Prof Kate Hamblin (Centre for Care Director), Sir Ed Davey MP, Melanie Crew (Carers UK), Fay Benskin (Centre for Care Impact Specialist) and John Perryman (Carers UK).
[1] Overton. L and Watkins, M. (under review) Understanding the lived experience of unpaid caregiving and risks to financial wellbeing
[2] Petrillo, M., Zhang, J. and Bennett, M.R. (2024) Valuing Carers 2021/2022: the value of unpaid care in the UK. London: Carers UK
What do financial inclusion and financial wellbeing mean for people in the social care sector?
Participants highlighted key challenges, which related to income predictability; access to cash; and the need for accessible financial advice.
Professor Adele Atkinson ran a practical workshop at the Centre for Care in early May, designed to encourage participants to explore the role of money and finance in the lives of people providing and receiving care. Participants highlighted key challenges, which related to income predictability; access to cash; and the need for accessible financial advice tailored to carers and care recipients.
Topics discussed made clear the high levels of vulnerability, including those in the care workforce opting out of pension auto-enrolment, the lack of insurance products tailored to the needs of people needing short- or long-term care or those who look after them, and the additional challenges for migrants working in the sector. Participants also discussed how financial and non-financial factors influenced the financial well-being of unpaid carers, increasing social isolation and significantly reducing opportunities to enjoy leisure time or seek new educational opportunities.