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Carer's Allowance

Volume 447: debated on Friday 16 June 2006

To ask the Secretary of State for Work and Pensions pursuant to the answer of 27 March 2006, Official Report, columns 721-22W, on carer's allowance, what the cost to public funds would be if the listed number of recipients of carer's allowance were receiving the standard rate of the allowance, in addition to their basic state pension. (65493)

Figures derived from new DWP national statistics published on 27 April indicate that in Wales at 30 November 2005, there were some 940 carers aged 60 and over receiving carer's allowance at a non-standard rate. A breakdown of this figure by gender and Welsh parliamentary constituency is in the table. This information was not available for the reply I gave to my hon. friend on 27 March 2006, Official Report, columns 721-22 because the data then available for the numbers of recipients of carer's allowance at 31 August 2005 were rounded to the nearest 100, and this did not permit figures for the recipients of a non-standard rate of the allowance in each constituency to be provided where they numbered fewer than 50. The new statistical data are rounded to the nearest 10 and, as shown in the table, this does permit figures for the recipients in each constituency to be provided where they number five or more. The estimated additional annual cost to public funds of paying the standard weekly rate of carer's allowance to the carers listed in the table, rather than the non-standard rate they are receiving, would be around £1.25 million at current benefit rates.

Carer's Allowance: numbers of recipients aged 60 or over paid at a non-standard rate by gender and in total in each Welsh parliamentary constituency at 30 November 2005

Parliamentary Constituency

Number of recipients1

Total

Women

Men

Aberavon

10

10

2

Alyn and Deeside

30

30

2

Blaenau Gwent

30

30

2

Brecon and Radnorshire

20

10

2

Bridgend

30

30

2

Caernarfon

20

20

2

Caerphilly

30

30

2

Cardiff Central

20

20

2

Cardiff North

10

10

2

Cardiff South and Penarth

30

30

2

Cardiff West

20

20

2

Carmarthen East and Dinefwr

20

20

2

Carmarthen West and South Pembrokeshire

20

20

2

Ceredigion

30

20

2

Clwyd South

20

20

2

Clwyd West

20

20

2

Conwy

20

20

2

Cynon Valley

30

30

2

Delyn

20

20

2

Gower

20

20

2

Islwyn

20

20

2

Llanelli

40

30

2

Meirionnydd Nant Conwy

10

10

2

Merthyr Tydfil and Rhymney

20

20

2

Monmouth

20

20

2

Montgomeryshire

20

10

2

Neath

40

30

2

Newport East

20

20

2

Newport West

20

20

2

Ogmore

30

30

2

Pontypridd

30

30

2

Preseli Pembrokeshire

30

30

2

Rhondda

20

20

2

Swansea East

20

20

2

Swansea West

20

20

2

Torfaen

40

40

2

Vale of Clwyd

30

30

2

Vale of Glamorgan

20

20

2

Wrexham

20

20

2

Ynys Mon

20

10

2

Total3

910

860

40

1 Figures are rounded to the nearest 10 and show the number of people receiving an allowance at a non-standard rate and exclude those with entitlement where payment has been suspended. 2 Nil or fewer than five 3 Totals may not sum due to rounding. Source: DWP Information Directorate: Work and Pensions Longitudinal Study

To ask the Secretary of State for Work and Pensions if he will change his policy on ceasing carer’s allowance on receipt of the state retirement pension at age 60; and if he will make a statement. (77711)

We have no current plans to change the policy on overlapping benefits in respect of carer’s allowance and retirement pension.

It is a basic principle of the social security system that only one benefit at a time can be paid for the same purpose. Even though the circumstances which give rise to entitlement to carer’s allowance and state pension are different, they are both designed to provide a degree of replacement for lost or forgone income. Carer’s allowance was designed to provide a measure of replacement income where the duties of caring for a severely disabled person prevent the prospect of full-time work and the earnings it would yield. State pension was designed to provide a replacement income in retirement.

Although an entitlement to both benefits will mean that carer’s allowance is not payable, or not payable in full, an underlying entitlement to carer’s allowance gives access to additional financial support through the carer premium in housing benefit and council tax benefit and since 2003 the additional amount for carers in state pension credit.