The 2024 Autumn Budget Leaves Millions Of Unpaid Carers Out Of Pocket

Despite Rachel Reeves’ first Autumn Budget update announcing the weekly earnings threshold for Carer's Allowance increased by £45 to £196, our research shows that unpaid carers across the UK will still face an average shortfall of £212 per month, totalling £2,551 annually. This statistic highlights the financial and emotional strain unpaid carers face across the UK.

The average cost of care has increased by 8% in the last year - with UK care home fees averaging a total of £64,000 a year. Meanwhile, the weekly Carer’s Allowance rate has fallen behind, increasing by just 6% in the same period.

Due to rising care costs and the lack of financial support for those providing unpaid care, families struggle to find and fund affordable long-term elderly care. Our latest insights into the state of care in 2024 show that 74% of families have struggled to fund care for an elderly loved one in the last two years, largely due to widening funding gaps and limited government support.

We’re Urging the Government To Offer Further Support and Guidance For Carers

The increase in the earnings threshold for Carer’s Allowance to £196 per week is a positive step, but it isn’t enough to address the financial and emotional burdens faced by unpaid carers. Many carers will still find themselves out of pocket by an average of £212 every month, as Carer’s Allowance itself (currently worth £81.90 a week) hasn’t kept pace with inflation or care sector demands.

What’s more, carers providing fewer than 35 hours of care each week are still excluded from the financial benefits of the Carer’s Allowance, leaving many unsupported.

With over five million people juggling work and caregiving responsibilities, it’s clear we need more than incremental improvements. To create a system that reduces financial and emotional stress for carers, funding and accessibility to care must be reviewed fully.

To Be Effective, Carer’s Allowance Must Be In Line With Inflation

Sara Chapin, Head of Finance at Lottie, has shared how Carer’s Allowance acts as a crucial lifeline for unpaid carers and must increase in line with inflation to be effective:

Increasing the Carer’s Allowance earnings threshold to £196 per week is a positive step, allowing more carers to access essential financial support. However, in my experience, this support still falls short of addressing the financial strain caregivers face. Our research has found that they are, on average, out of pocket by £2,551 annually.

For Carer’s Allowance to be truly effective, it must adapt to inflation and reflect actual caregiving costs. Without substantial and responsive support, unpaid carers will continue to struggle financially while balancing their needs with those of their loved ones, highlighting the urgent need for ongoing commitment to meaningful assistance.

Hear From Unpaid Carers Who Struggle Balancing Care and Paid Jobs

Joanne

Joanne, an unpaid carer for her mother, who is living with AMD (Age-related Macular Disease) whilst balancing a pressured job, has shared her struggles in finding affordable elderly care:

I am 50 years old originally from South Africa. I have lived in the UK since 1999 and work full-time in a high-pressure, demanding position, with 2 days in a London office.

My mother moved over to the UK in October 2023 due to financial reasons; she has AMD (Age-related Macular Degeneration); therefore, her vision is impaired. I have been caring for her since this time on my own.

The current cost of care for my mum is an average of £100 a week. However, caring costs, to my knowledge, are around £2,000 a week should she be in a care home.

All of my mum’s care is funded from my own income and savings. Therefore, I am looking at having no funds when I am due to retire. I budget her care costs monthly.

I have some support from Crossroads Carers. They visit for a few hours once a week. This is currently under review as the 10 weeks of free care they previously provided have expired. Further enquiries have been made with the council, and they are still pending.

Simon

Simon, an unpaid carer juggling care for his elderly parents whilst experiencing his own personal health concerns, shares the emotional and financial impact of being an unpaid carer:

Being a caregiver for my dad, who is diabetic, requires meticulous meal planning to prevent diabetic hypoglycemia episodes. His reliance on my help has affected me deeply, knowing that without my support, managing his meals effectively would be a challenge.

This responsibility leads to additional out-of-pocket expenses, especially while purchasing food items. Even though I stick to the shopping list my parents provide, I feel compelled to go beyond and buy supplementary items.

I conceal the actual cost of groceries from them, stating that I had enough money to cover it, often sacrificing my needs to ensure they have enough.

The strain on unpaid carers extends beyond the financial realm, causing heightened stress levels that often lead to burnout, accompanied by feelings of helplessness and exhaustion. I feel more burned out every day.

Recent inflationary trends have disproportionately affected unpaid carers, exacerbating our financial hardships due to increased costs and the necessity of taking unpaid leave to manage their caregiving responsibilities.

Methodology

We sought to determine the monthly and yearly costs of being an informal carer in the UK. We gathered data to estimate the cost, using figures taken from the sources below to work out an average:

• ONS Census Data - The percentage of unpaid carers in 2023 across the UK
• Numbeo - Average cost of living (excluding rent) in the UK
• Numbeo - Average cost of rent, single person, outside city centre (UK average)
• Numbeo - Average net salary (after tax - UK average)
• GOV UK - Carer’s Allowance (4 weekly amount)

We used the above data to calculate the cost of being a carer by working out a monthly average of the cost of living when providing informal care (and claiming Carer’s Allowance) and without caregiving responsibilities.

1. Internal Lottie Data - based on the average cost of care homes listed on Lottie from 2023 to 2024
2. Carer’s Allowance Weekly Rate Increase of 6.7% in April 2024, increasing from £76.75 to £81.90
3. The State of Care in 2024

Lottie matches care seekers with the best care homes for their needs. You can request a free list of care homes from our care experts, who will share homes that match your budget, location and type of care needed. You can also search for a care home through our easy-to-use directory.