Carers hit by abolition of 10p tax rate

A charity representing the UK’s six million carers today called on Government to compensate carers affected by the recent tax changes, including the abolition of the 10p tax rate.

Gavin Macgregor, Head of Communications and Development at Carers UK said :
“Many carers can only manage their caring responsibilities by working part-time or in low paid jobs. Carers contribute so much to society yet these tax changes will leave some worse off. Government will shortly be publishing a new National Strategy for Carers and it should use this opportunity to help those carers made worse off as a result of last year’s budget”.

Losers from the tax changes include people earning between £5,435 and £19,355 a year. Many carers are forced to work part-time, both to manage their caring responsibilities and to remain under the earnings limit for Carer’s Allowance. The maximum earnings a carer can have and still claim Carer’s Allowance is £95. This is equivalent to 17 hours at the minimum wage (£5.52). Carers aren’t eligible for working tax credits unless they are working for more than 30 hours per week.
Carers UK research in 2007 showed carers were retiring on average 8 years early. This group could also lose out because they are not eligible for tax credits, but are too young to benefit from the increase in the tax allowance for those aged 65 and over.

A solution would be to make carers eligible for tax credits if they work for 16 hours each week, as lone parents and disabled people currently are. Carers UK has recommended this to Government.

Carers UK believes that the current benefits system doesn’t work for carers and our campaign ‘Real Change not Short Change’ has been calling for a radical overhaul of carers’ benefits.

Article provided by Carers UK


Posted by, Asif Yusuf



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