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Carer’s Allowance

Volume 487: debated on Thursday 5 February 2009

To ask the Secretary of State for Work and Pensions what estimate his Department has made of the cost to the public purse of an annual increase in carer’s allowance of (a) £3, (b) £4, (c) £5, (d) £6, (e) £7, (f) £8, (g) £9 and (h) £10 a week in each of the next six years. (246725)

The estimated additional annual cost of increasing carer’s allowance by the specified amounts is shown in the following table. The increase in carer’s allowance is represented as a cash amount in the given years. The costs are given in nominal terms.

Estimated additional annual cost of increasing carer's allowance

£ million

Increase in carer’s allowance amount

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

£3

40

42

44

45

47

48

£4

54

56

58

60

62

64

£5

67

70

73

75

78

80

£6

80

84

87

90

93

96

£7

94

98

102

105

109

113

£8

107

111

116

120

125

129

£9

121

125

131

135

140

145

£10

134

139

145

151

156

161

These figures represent the best estimate we can provide given the limitations of the data. However, they are likely to under estimate the total costs. This is because they do not include any costs for carer’s allowance recipients who are in a household where a member receives an income-related benefit, as we are unable to estimate the costs of increasing carer’s allowance for this group.