Social security - Scottish Carer's Assistance consultation: Scottish Government response

More stable support during key life changes

Carer’s Allowance is paid where the person being cared for is getting certain disability benefits. This means that payments will stop when, or shortly after, the cared for person’s qualifying benefit stops. When a cared for adult goes into hospital or residential care, Carer’s Allowance will stop after four weeks, and when a cared for person dies, Carer’s Allowance payments stop after eight weeks.

In the consultation we proposed to extend payments from eight to twelve weeks when a cared for person dies, and from four to twelve weeks when an adult enters hospital or residential care.

Extending payments from eight to twelve weeks when a cared for person dies

Respondents’ feedback

Almost all of those answering this question (89%) agreed with this proposed future change. A large number of people echoed the rationale set out in the consultation paper, with some noting this would be a more empathetic and compassionate approach than at present.

A few respondents noted that while a carer’s grief may be similar to that of someone else who has suffered a loss, they may have less practical ability to get back into work or education or to rebuild support networks due to their caring role. While respondents generally welcomed the proposal, a small minority felt that the Scottish Government should introduce a longer ‘run on’ of support, and a small number felt eight weeks was long enough.

Accessing advice and support was seen to be important, and there were suggestions that carers should be able to access help across a range of areas including financial support, legal aid, and information on other benefits after the loss of a cared for person.

Scottish Government response

We recognise the vital support carers provide to the people they care for and the need for more stable incomes when they are having to cope with major life events. With this in mind and due to the strong support, we will proceed with the proposal to extend payments from eight to twelve weeks, when a cared for person dies. This is our first priority after case transfer is complete – when the benefits of all carers in Scotland have transferred over from the Department of Work and Pensions to Social Security Scotland. It is important that we wait until this point so that carers already getting Carer’s Allowance are not disadvantaged.

As Carer Support Payment will have complex links with benefits which will remain reserved to the UK Government, we will need to work with the Department for Work and Pensions on implementation, as we know how important it is that any changes which we make don’t do anything which would risk the other financial support carers get from reserved benefits, taking into consideration available finance, as well as developing systems to make delivery possible.

Extending payments from four to twelve weeks when a cared for adult enters hospital or residential care

Respondents’ feedback

A large majority of respondents (87%) agreed with this proposal and feedback was very positive, in that this proposal offered a more compassionate approach. A key theme from a significant minority was that carers will still have a caring role when the cared for person is in hospital or care, or that this can lead to additional costs or a more intensive caring role.

A small number of respondents were concerned that 12 weeks would not be long enough and that payments should continue for as long as a cared for person is in hospital, or should be extended in some situations such as where a cared for person is unable to be discharged from hospital. Further suggestions were for the ‘run on’ to be extended from between 16 weeks to 12 months, although there was no specific consensus on this time period. Respondents also noted that finding work for a temporary period while a cared for person was in hospital was unrealistic, and that processes for payments to be reinstated when hospitalisation ends should be quicker.

While most respondents were positive about this proposal, a small number of individuals expressed the view that 12 weeks would be too long, with references to four and eight weeks as more appropriate. In common with responses to other questions, it was highlighted that it was vital to ensure that any changes did not impact negatively on reserved benefits. One organisation recommended the implementation of a ‘post caring support payment’ which could be linked to the length of time care had been provided.

Scottish Government response

When we launch Carer Support Payment, we plan to set payments to £0 rather than ending an award, when the person being cared for is in hospital or residential care and their disability benefit is stopped. This would allow us to begin Carer Support Payment payments again sooner when the cared for person leaves hospital or residential care, with no need for the carer to reapply.

We appreciate the concerns raised that caring does not necessarily stop when a cared for person enters hospital or care, and the support for the proposal to extend support where a cared for person is in hospital or care. We will continue to take into account the feedback provided through the consultation in our work to consider this future change. In any changes we make, we will also need to take into account interactions with reserved benefits paid by the Department of Work and Pensions.

Access to employment

We have heard from carers that the current earnings limit, which means carers can’t earn more than £132 per week in 2022/23 (after some deductions for things like childcare and pension contributions) is too low, and limits opportunities. Also, if carers earn £1 over the threshold, they lose all of their Carer’s Allowance award. This is often referred to as the earnings ‘cliff edge’. This means that carers getting Carer’s Allowance may have to reduce their working hours as their wages increase to keep their benefits or end up worse off.

In the consultation we proposed raising the earnings threshold and that this could be linked to 16 hours at a specific rate, such as the Real Living Wage. Using the 2021-22 level of the Real Living Wage, which is £9.90 an hour, this would be around £158 weekly, compared to the current earnings threshold of £132.

We also want to look at how we could address the ‘cliff edge’. This could be done by using a ‘run on’ period, where payments would continue for a number of weeks after a carer earns over the limit.

Respondents’ feedback

The majority of respondents (82%) supported the proposal to increase the earnings threshold. However there were mixed responses on how this should work in practice, compared to the other questions in the consultation. Those in favour regarded the current Carer’s Allowance earnings limit as acting as a disincentive to work and making re-entry to the workplace difficult. Raising the threshold was seen as giving greater flexibility to carers, however some felt the suggested limit would still be too low to make a real difference. A small minority felt that the current Carer’s Allowance system did not sufficiently account for variable work patterns or incomes, and called for this to be addressed within Carer Support Payment. There were a few comments that the proposed earnings limit discriminated against better-paid carers, and a significant minority felt that all limits on earnings should be removed.

Of those responding, the majority (67%) agreed with the suggestion of using a formula based on 16 times the hourly Real Living Wage. Of those preferring the 16 hour option at Real Living Wage rates (£158), it was felt that this limit would easily let carers know what they could earn up to. Of those who disagreed, issues raised included the lack of feasibility in holding well paid roles for only up to 16 hours per week, and the lack of jobs which allow as few as 16 hours weekly. A few respondents suggested alternative hourly limits, with 20 hours mentioned most frequently.

Addressing the cliff edge

A majority (77%) agreed with the proposal to look at a ‘run on’ after a carer earns over the earnings limit in future. It was felt that this could be particularly helpful for those with variable earnings. It would provide more flexibility and stability and reduce stress. A significant minority of respondents cited opposition to the ‘cliff edge’ with a small number of calls for it to be abolished or for a longer-term view of earnings to be considered.

A need for more detail about how the ‘run on’ approach would work was cited by a significant minority of mainly organisation respondents. This was particularly regarding the duration of the ‘run on’ after a carer breaches the earnings limit, and its interaction with other benefits and entitlements. There were some negative comments, with very small numbers seeing this approach as overly complex and difficult to administer.

Scottish Government response

We welcome the range of comments and suggestions made by respondents and recognise that the majority of respondents in this area were in favour of an increase to the earnings threshold, and setting this at a level which would allow carers to work 16 hours a week alongside their caring role.

We recognise that some carers would like to remove the earnings threshold completely. However this would fundamentally change the purpose of Carer Support Payment as a benefit for those less able to take on paid work due to caring responsibilities.

Given the range of views on how the earnings rules for Carer Support Payment could work differently from Carer’s Allowance, we are continuing to consider the responses to the consultation to inform our future approach for Carer Support Payment and once case transfer is complete.

Support for a wider group of unpaid carers

We recognise that many people would like our replacement for Carer’s Allowance to provide support to a wider group of unpaid carers. We know in particular that carers who currently have only ‘underlying entitlement’ to Carer’s Allowance, because they receive another income replacement benefit instead, feel that their caring role is not properly recognised, and that the majority of these carers are in receipt of State Pension.

In the Multi Criteria Analysis process we carried out to develop the consultation proposals, we considered increasing access to our benefit for carers getting State Pension. We found that while this would have a positive impact in terms of recognising the contribution of these carers, it would require significant investment which wouldn't be targeted at carers on the lowest incomes, and would leave out other groups of carers currently unable to get Carer's Allowance

In the consultation we asked for views on an alternative approach - a new payment for long term carers - and if this could be an effective investment to recognise a wider group of carers. The aim of such a payment would be to recognise the impacts on carers’ finances of a long-term caring role. As an example of how this might work, it could be paid after a carer has met Carer Support Payment eligibility requirements for a certain period, whether they were receiving payments or had only ‘underlying entitlement’.

Respondents’ feedback

A high proportion of respondents (86%) felt that a payment for long term carers should be considered further. There were comments that unpaid carers.

should be appropriately supported and compensated, particularly as some carers will have foregone opportunities for education, employment, career progression and building up a private pension. It was also noted that caring becomes more difficult as people get older. However, who this payment should be for attracted lots of different suggestions, such as lone parents, those with particular health conditions or life-long health conditions, those on low incomes, or those who have been caring for a specific number of years.

Of the small number of respondents who disagreed with this proposal, there were comments that carers will already be receiving other means tested benefits or earned income, and that those with a State Pension should not be entitled as this is a higher amount than Carer’s Allowance.

There were also a large number of suggestions on what the payment should look like, including how often it should be made, weekly, fortnightly or annually, and how much the payment should be, ranging from £10 per week to £100 per week.

Scottish Government response

This is a new policy idea and we consider this to be one of the longer-term Carer Support Payment options to be considered in the future. We would need to carry out further work, with carers, support organisations and others in government and public services to understand the impacts of this proposal.

We therefore intend to explore this proposal further, as a longer-term change, in line with other ongoing work to support unpaid carers, and taking into consideration the consultation responses.

Section 4. Impact Assessment, Monitoring and Continuous Improvement

To help us understand the impact of our policies, Social Security Scotland, who will deliver Carer Support Payment, will collect a wider range of equalities data for people getting Carer Support Payment than is currently collected for Carer’s Allowance. Social Security Scotland has a benefits evaluation impact strategy^[19] and engages with service users in order to understand how well the system is working and to encourage benefit uptake, so that people are accessing all of the support available to them.

It is not the level of income alone that makes the difference for carers, but also how the benefit is delivered, and how we treat and support carers who access Social Security. This is particularly important for Carer Support Payment as it is the most complex benefit to be devolved, given its interactions with the reserved benefits and tax system. We want to make sure we get it right, and to ensure that where we identify any unintended consequences, we can take action. We will, therefore, continue to listen to and work with carers, carer organisations and stakeholders before, during and after the launch of Carer Support Payment, to ensure that policies and systems are designed and developed taking into account the experiences of carers.

Impact Assessments

It is important that our benefits are designed and developed in a way that works for all of Scotland's carers and the people and organisations which support them. We also want to focus on what we can to improve equality through Carer Support Payment and to avoid any negative impacts on people, groups, communities or businesses. We have, therefore, considered how the decisions we make could affect people and groups differently. We have done this by using research and evidence we already have, and continuing to listen to carers and organisations who support them to find out more.

We also used the consultation to seek views on the possible impacts of Carer Support Payment. We included a summary of what we have learned so far in the Equality Impact Assessment, Island Communities Impact Assessment, Fairer Scotland Duty, Child Rights and Wellbeing Impact Assessment and Business and Regulatory Impact Assessment.

Respondents’ feedback

Fewer than half of the respondents chose to answer questions on the impact assessments. In terms of those who share protected characteristics, 14% of respondents focused on women, disabled people, those within ethnic minority groups, sexual orientation and age. They noted that caring roles fall mostly on women but that intersectional issues (interactions with ethnicity, age, disability etc.) have impacts on caring too.

While views on the proposals were largely positive, it was felt that there is a need to engage with diverse groups while being considerate about cultural perceptions of caring, communication and accessibility challenges.

Over 6% who responded felt that island communities are more economically disadvantaged than their mainland counterparts due to more limited availability of services, higher costs to access them, and a higher overall cost of living. Some also felt that some rural and remote communities have similar disadvantages.

Over 12% felt that the proposals in the consultation would help to reduce socio-economic disadvantage, with many of the proposals positively impacting on people living in poverty. However, some also acknowledged how the current cost of living crisis is significantly exacerbating socio-economic disadvantage for many carers. Around 11% of respondents felt the proposals would have a positive impact on children and their rights, improve financial stability and increase recognition of child carers. A few (6%) highlighted the need for all businesses to have a basic understanding about the caring role and the impact this can have on their employees.

Scottish Government response

We welcome the variety of comments and suggestions made. We also welcome the fact that some respondents considered our proposals would lead to a fairer system, improve equality and equity, help to reduce socio-economic disadvantage and have a positive overall impact for different communities with diverse needs as identified and considered in our initial assessments.

The Scottish Government is very concerned about the hardship that people, including unpaid carers, are facing in this cost of living crisis. By the end of March 2023, we will have invested around £3 billion in a range of measures to help households face the increased cost of living, including £1 billion in providing services and financial support not available elsewhere in the UK – including the Carer’s Allowance Supplement and Young Carer Grant.

The situation facing the Scottish Government is, in financial terms, by far the most challenging that we have faced under devolution, but we are doing everything within our power to support people, public services and the economy. Every pound we spend on measures to help with rising costs must be funded from reductions elsewhere, given our largely fixed budget and limited fiscal powers compared to the UK Government.

In relation to the points on co-design, we are working with carers and support organisations throughout the development of Carer Support Payment to ensure that our policy, systems and services are shaped by the people who will use the benefit, through regular user research and user testing.

As noted in the consultation, we recognise that we will need to provide clear communications to carers around case transfer and any changes to Carer Support Payment. It will be particularly important to ensure that these communications are developed with carers and support organisations so that they work for the people who will use them.

We understand that language barriers for those in minority ethnic groups may have been considered: as well as English, Social Security Scotland automatically creates all its promotional materials in seven languages – Farsi, Polish, Mandarin, Cantonese, Arabic, Gaelic and Urdu. The materials will also be translated into any other language upon request. These steps are to ensure that all ethnic groups have a positive experience applying for the benefit, promoting good relations, and have equal opportunities to access their entitlements.

Improved join-up to wider carer support services, and the choice and flexibility offered by Social Security Scotland’s Local Delivery service, will positively impact island and rural carers facing barriers to accessing services. Improved signposting and clear communication will benefit carers with underlying entitlement to Carer Support Payment.

We recognise that the cost of living is on average higher for island and rural carers and that this payment does not adjust for this factor. Island and rural carers will benefit from wider cross-governmental work, including a new Islands Cost Crisis Emergency Fund as part of the Scottish Government’s Emergency Budget review to positively impact remote rural communities, and carers throughout Scotland. It is also expected to have a positive impact on the finances of low-income carers who share one or more protected characteristics (e.g. women from ME communities) and thus may reduce some of the economic inequality gap between unpaid carers and the rest of society.

All points raised by respondents in the impact assessment section of the consultation will be considered and detailed further in the summary results of the following impact assessments for Carer Support Payment:

• Equality Impact Assessment
• Child’s Rights and Wellbeing Impact Assessment
• Business & Regulatory Impact Assessment
• Island Communities Impact Assessment
• Fairer Scotland Duty Impact Assessment
• Data Protection Impact Assessment