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| Version 1 | Version 2 |
|---|---|
| Carers 'losing out' as wages rise | Carers 'losing out' as wages rise |
| (4 days later) | |
| Thousands of carers have ended up worse off after a rise in the minimum wage last October, support groups say. | Thousands of carers have ended up worse off after a rise in the minimum wage last October, support groups say. |
| The extra money has taken them above the threshold for claiming Carer's Allowance, which is worth £46 a week. | The extra money has taken them above the threshold for claiming Carer's Allowance, which is worth £46 a week. |
| But if the people affected cut their weekly hours to under 16 to take them back under the threshold, they would then lose out on tax credits. | But if the people affected cut their weekly hours to under 16 to take them back under the threshold, they would then lose out on tax credits. |
| Support groups want the government to end what they say is a "catch-22 situation" but so far it has refused. | Support groups want the government to end what they say is a "catch-22 situation" but so far it has refused. |
| Sarah lives in Liverpool and cares for her elderly mother as well as looking after her own 14-year-old son and working in the local chemist. | Sarah lives in Liverpool and cares for her elderly mother as well as looking after her own 14-year-old son and working in the local chemist. |
| She told BBC Radio 4's Money Box about the nasty shock when her wages went up. | She told BBC Radio 4's Money Box about the nasty shock when her wages went up. |
| "I work 16 hours a week and earn the minimum wage. But when that went up to £5.35 an hour I was no longer entitled to claim the Carer's Allowance. I was £1.60 over the threshold," she said. | "I work 16 hours a week and earn the minimum wage. But when that went up to £5.35 an hour I was no longer entitled to claim the Carer's Allowance. I was £1.60 over the threshold," she said. |
| To get Carer's Allowance your wages have to be less than £84 a week. | To get Carer's Allowance your wages have to be less than £84 a week. |
| And the small rise in her weekly pay took her above that threshold meaning she lost the whole of her Carer's Allowance - worth £46.95 a week. | And the small rise in her weekly pay took her above that threshold meaning she lost the whole of her Carer's Allowance - worth £46.95 a week. |
| 'Catch 22' | 'Catch 22' |
| If Sarah cut her hours to just 15 a week she would get back her Carer's Allowance. | If Sarah cut her hours to just 15 a week she would get back her Carer's Allowance. |
| But another anomaly means that would leave her even worse off. | But another anomaly means that would leave her even worse off. |
| "It's a catch-22 situation," she said. | "It's a catch-22 situation," she said. |
| "You can't work any longer because you're caring for somebody. And you can't work any less because if you're claiming tax credit you've got to work 16 hours a week." | "You can't work any longer because you're caring for somebody. And you can't work any less because if you're claiming tax credit you've got to work 16 hours a week." |
| I can't begin to tell you what a difference it makes and how miserable it's made us Sarah, carer Send us your comments | I can't begin to tell you what a difference it makes and how miserable it's made us Sarah, carer Send us your comments |
| Sarah's tax credit amounts to more than £100 a week. | Sarah's tax credit amounts to more than £100 a week. |
| Emily Holzhausen, head of policy at Carer's UK, confirmed that if Sarah cut her hours she would lose it. | Emily Holzhausen, head of policy at Carer's UK, confirmed that if Sarah cut her hours she would lose it. |
| "If you work 15 hours you don't get tax credits at all. So she has no option but to lose this Carer's Allowance," she said. | "If you work 15 hours you don't get tax credits at all. So she has no option but to lose this Carer's Allowance," she said. |
| And Sarah said that has not been easy: "Just over £45 a week may not seem a lot to some people but I can't begin to tell you what a difference it makes and how miserable it's made us now it's been taken away." | And Sarah said that has not been easy: "Just over £45 a week may not seem a lot to some people but I can't begin to tell you what a difference it makes and how miserable it's made us now it's been taken away." |
| Simple solution? | Simple solution? |
| The problem affects many of the estimated 40,000 people who get Carer's Allowance from the Department for Work and Pensions and also work. | The problem affects many of the estimated 40,000 people who get Carer's Allowance from the Department for Work and Pensions and also work. |
| Ms Holzhausen said it shows a lack of joined up government: "One department has been working without talking to another department about what the knock-on effect would be. | Ms Holzhausen said it shows a lack of joined up government: "One department has been working without talking to another department about what the knock-on effect would be. |
| "It's great that the minimum wage has gone up in October. But it's out-of-synch with benefit changes. | "It's great that the minimum wage has gone up in October. But it's out-of-synch with benefit changes. |
| Change the time when you raise the earnings threshold Emily Holzhausen, Carers UK | Change the time when you raise the earnings threshold Emily Holzhausen, Carers UK |
| "The threshold will rise to £87 in April and Sarah will be able to claim Carer's Allowance again. | "The threshold will rise to £87 in April and Sarah will be able to claim Carer's Allowance again. |
| "Then in October if the minimum wage rises again she will lose it. And so on." | "Then in October if the minimum wage rises again she will lose it. And so on." |
| Ms Holzhausen hopes the recent launch of a £33m package of help for carers by Chancellor Gordon Brown and Minister for Care Services Ivan Lewis will trigger a further look at this expensive anomaly. | Ms Holzhausen hopes the recent launch of a £33m package of help for carers by Chancellor Gordon Brown and Minister for Care Services Ivan Lewis will trigger a further look at this expensive anomaly. |
| "The solution is simple," she said: "Change the time when you raise the earnings threshold for Carer's Allowance from April and synchronise it with the National Minimum Wage in October. | "The solution is simple," she said: "Change the time when you raise the earnings threshold for Carer's Allowance from April and synchronise it with the National Minimum Wage in October. |
| "If you did that we would solve it in one." | "If you did that we would solve it in one." |
| BBC Radio 4's Money Box was broadcast on Saturday, 24 February 2007 at 1204 GMT. | |
| The programme was repeated on Sunday, 25 February 2007 at 2102 GMT. |