Will the Cabinet Secretary outline any specific support or alternative financial assistance available for pensioners in Wales who lose their carer’s allowance due to reaching retirement age?
The rules governing how pensioners can claim Carer’s Allowance are a matter for the UK Government, through the Department for Work and Pensions (DWP). In general, pensioners cannot receive the State Pension and Carer’s Allowance at the same time, due to the overlapping benefits rule. However, they will still have an underlying entitlement to Carer’s Allowance. This can help them qualify for other DWP benefits, such as Pension Credit that is paid on top of their State Pension.
To complement and extend the range of general support for unpaid carers, we established the Carers Support Fund in April 2022 with investment of £5.25 million for 2022-26. The fund provides emergency financial support for unpaid carers of all ages on low incomes to pay for essential items. This could be food, a household item or a utility bill.
Financial support was provided to over 29,000 carers in 2022-25, nearly double the target of 15,000. With additional funding for 2025-2026, the Carers Support Fund aims to help a further 8,000 unpaid carers.
The Fund is not intended to address long term issues of poverty experienced by unpaid carers. However, delivery of the Carers Support Fund does include information sessions on benefit entitlement and financial management. For some carers, this can result in a more sustained impact on household finances.
Almost half of unpaid carers who have accessed the Carers Support Fund were previously unknown to services, evidencing its additional value as a gateway to other forms of support.
Individuals with eligible care and support needs may receive Direct Payments to arrange their own care. This includes the option to employ a person of their choice, such as a relative, to provide support. This flexibility may be particularly relevant where a carer is no longer eligible for Carer’s Allowance due to reaching retirement age.
Relatives who do not live in the same household may be paid through Direct Payments without restriction, provided the arrangement meets assessed needs and is included in the care and support plan. However, where the relative lives in the same household, payment is only permitted if the local authority is satisfied that the arrangement is necessary to meet the individual’s care and support needs and promotes their well-being. This is set out in the Care and Support (Direct Payments) (Wales) Regulations 2015 and the Part 4 Code of Practice (Meeting Needs) under the Social Services and Well-being (Wales) Act 2014. A relative who is paid through a Direct Payment to provide the care will be treated as receiving an earned income and this may affect any means-tested benefits they and/or their partner receive.
Local Authorities have a duty under Section 24 of the Social Services and Well-being (Wales) Act 2014 to assess any unpaid carer who appears to have, or may develop, needs for support. This is an important opportunity for unpaid carers to explore the support they may need in their caring role.