Indebted and overlooked: New research shows carers in need of debt solutions

Over one in three (37%) carers do not want to wake up in the morning because of their dire financial circumstances, reveals new research by The Princess Royal Trust for Carers.

The Trust is now calling on the government for greater support, after the survey of 800 – who provide unpaid care for a sick and disabled family member – found that over half (53%) of all carers who work earn less than £10,000 a year.

"The added financial pressures are causing nearly half (45%) of carers to want to run away from their caring role..."

Moreover, three-fifths (60%) are having to spend all of their savings to support the person they care for. 89% say that they are financially worse off as a result of caring and, consequently, almost two-fifths (39%) fear they will lose their home.

Worryingly, to cover basic living needs, one in ten (10%) carers questioned have borrowed exceptionally high-interest loans (41% plus APR), while three-fifths (62%) have had to borrow money from family and friends.

The added financial pressures are causing nearly half (45%) of carers to want to run away from their caring role, while 15% are turning to alcohol or drugs to cope. Unsurprisingly, over one in three (37%) carers surveyed are fearful of the future.

"... I feel I have been penalised by the government for caring for my husband."

Karen, 42, is one example of a carer battling difficult conditions. Karen became a carer for her husband when he was diagnosed with neurofibromatosis and chronic arthritis. She told The Trust: "Since Mark became ill we have cascaded into poverty. I was declared bankrupt; I have lost a well-paid job, our house and the future we thought we'd have – all as a result of my caring role.

"I was so desperate I even borrowed from a loan shark to cover an electric bill and was charged 47 per cent interest per day.

"The stress of caring and the financial worries we've had to endure, led me to have a nervous breakdown a few years ago. I am better, but, some days I feel on my own, fraught with worry and at breaking point.

"I never thought we'd be a couple who depended on the state for help. We can just about cover the bills, but we still struggle to pay for food and cover our rent. I feel I have been penalised by the government for caring for my husband."

To address these issues, one in two (49%) carers surveyed is calling on the new coalition government to increase the Carer's Allowance and one in three (29%) want greater support to make it easier for them to combine caring and paid work.

"... it is little surprise that many are suffering financially."

Carole Cochrane, Chief Executive at The Princess Royal Trust for Carers, has urged the coalition government to ensure greater financial support for the UK’s six million carers.

"The new coalition government has an opportunity to improve the lives of millions of carers," she said. "The Comprehensive Spending Review must deliver the improved community support for carers to combine work and care, as pledged already by the government in June."

The basic Carer's Allowance currently stands at £53.90 a week and is taken into consideration with other means-tested benefits such as Income Support. With carers often opting for low paid jobs with a minimum number of hours, in order to be able to care for their dependants, it is little surprise that many are suffering financially.

"... The government expects carers to work for 35 hours a week for £53.90 ..."

One carer who took part in the survey, 48 year-old Glynis, responded angrily, saying: "I feel invisible. The government expects carers to work for 35 hours a week for £53.90. How does that fit into a minimum wage that applies to the rest of the population?"

Colin Trend, from Money Advice South West, stressed the importance of carers seeking debt advice. He said: "Carers have very little choice when a loved one becomes ill long-term. The emotional upheaval would be enough, but for many juggling a job alongside this becomes too much.

"The drop in income can lead into a downward spiral into debt and the practical demands will place a higher burden on this smaller income. However, there are additional benefits available including Disability Living Allowance and Attendance Allowance so it is vital that the carer obtains advice to see what support is accessible."

"Asking for help or debt advice can often be a difficult first step to take."

Debt expert and director of Atlantic Financial Management, Kevin Still, added that his debt management firm has developed vulnerable client policies for people with serious debt problems, where the vulnerable parties may be either the carer or the person claiming Disability Living Allowance or Attendance Allowance.

He said: "It is not uncommon that UK carers have accumulated unsecured debts to support their budget deficit, but also assist the person they are caring for. Asking for help or debt advice can often be a difficult first step to take."

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