Unpaid carers under huge financial pressure to cut back

• 61% of unpaid carers are worried about living costs and managing in the future
• Over a third (35%) don’t feel confident they will be able to manage financially over the next 12 months
• A quarter of carers (27%) are struggling to make ends meet and 28% of carers are cutting back on essentials like food and heating

Unpaid carers are finding it increasingly difficult to afford day-to-day living costs, with the worry and anxiety of this further affecting their mental health and wellbeing. 
New statistics from the Carers UK State of Caring Survey 2024 in a report funded by abrdn Financial Fairness Trust show a concerning trend as carers increasingly take drastic measures to cope with their financial situation. 

Of the 12,500 people answering this year’s survey, 61% said they were worried about living costs and managing in the future. Over a third (35%) said they don’t feel confident about keeping up with costs over the next 12 months.

A quarter of carers (27%) are struggling to make ends meet and 28% of carers are cutting back on essentials like food and heating – an increase from 25% in 2022. For those in receipt of social security benefits, financial hardship is even more stark, with 42% of carers in receipt of Carer’s Allowance struggling to make ends meet.

Carers struggling to make ends meet are making difficult choices, such as reducing meal sizes or skipping meals, and some are turning to unsustainable solutions to manage finances. 28% of carers said they have had to use credit cards, 22% have used their overdraft and 14% of carers are in debt because of caring.

There are 5.8 million unpaid carers across the UK looking after an elderly, disabled or seriously ill friend or family member. Unpaid carers are more at risk of financial hardship in comparison to those who do not provide care and often face additional bills associated with their caring role. New analysis published last month by Carers UK found that 1.2 million unpaid carers were in poverty.

This year’s survey also found that most carers are now cutting back on social connections – which often provide a vital lifeline helping people to balance caring responsibilities with their own wellbeing.

68% of survey respondents have cut back on hobbies and leisure activities in a bid to save money for essentials and 60% have reduced time spent seeing family and friends – likely to exacerbate feelings of loneliness and isolation amongst carers.

For many, financial worries are having a further impact on wellbeing. Over half of carers (51%) said that this is having a negative impact on their mental health, and 61% feel stressed or anxious when they think about their financial situation. This figure increased to 91% for carers who are struggling to make ends meet.

Figures from the survey also found that the earnings limit for Carer’s Allowance is preventing many carers in paid employment from increasing their income. 62% of those claiming Carer’s Allowance said they had been unable to work more hours or take on higher paid work. 20% had an overpayment of Carer’s Allowance and 41% said that they left their paid employment because of the earnings limit.

This month, the Secretary of State of Work and Pensions, Liz Kendall, announced that the Government will commission an independent review of Carer’s Allowance overpayments – to assess how these have been accrued on such a vast scale.

Helen Walker, Chief Executive at Carers UK, said:

“Despite the fact that carers are saving the economy an astonishing £162 billion a year in England and Wales alone, many carers are living in poverty. Increasing costs in recent years have had a concerning impact and we are now seeing carers take increasingly drastic measures in order to cope with difficult financial situations.

“It is heart-breaking to read comments from carers in this year’s survey. For those in challenging caring roles, further financial pressures can make a difficult situation intolerable. It is also hard to hear unpaid carers tell us that they are unable to have a life outside of caring because there is no money for anything but the essentials.

“It is unacceptable that so many carers are still struggling with their finances whilst providing so much for society. Many carers would like to work more hours or return to work, however, with the inflexible Carer’s Allowance earnings limit this is often not possible. Without targeted support, many more risk further isolation and falling deeper into poverty.”

Vivienne Jackson, Research Manager at abrdn Financial Fairness Trust, said:

“The vital role that carers play in society needs to be recognised and rewarded fairly. It’s not right that people who care for others are facing poverty and hardship. Government and employers need to work together to ensure caring does not put people at risk of poverty.” 

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