I’d like you to imagine this dear reader, you have a normal life with kids, a job, a mortgage etc. You go on holidays, have hobbies, and have grand plans for your retirement.
Then suddenly, your life changes, with no warning. Maybe your partner becomes seriously ill, maybe your child has a devastating accident, or your parent is diagnosed with a dilapidating disease. This news hits you hard and you have no choice but to stop working to care for your loved one.
I know this is uncomfortable, but stay with me.
Now imagine this, on top of the emotional toll and stress this new life as an unpaid carer takes on you, all the work you’re doing will result in you losing around £5,000 from your pension pot. Not total, for every year you have to stop working.
Unimaginable?
Not so, it will most likely happen to you, according to PensionBee, two thirds of people are likely to take time off work to provide unpaid care at some point during their working life in the UK.
So to recap, you will likely have to take time off from work to provide unpaid care at some point in your life, because the state you pay taxes to can’t provide adequate medical or social care, and you will lose money from your pension for every year you will be providing that care. Surely there are benefits you can claim for doing what the government should at least help you with? Kind of.
If you spend at least 35 hours a week caring for someone with an illness or disability, you can claim a Carer’s Allowance. A whopping £76.75 per week (at 2023/2024 rates). There are conditions to that of course, you can’t claim it if you earn above £139 per week, if you’re receiving a state pension, or if the person you care for already receives a disability benefit for example. Now, just remember that the unpaid carers in the UK save the NHS the equivalent of £162 billion pounds – the same budget it takes to mismanage the actual NHS. But, never fear, you might be lucky and be able to claim 76 quid a week for keeping someone you love alive. How generous.
Now you might be thinking that private care seems like a good option to help you. That’s certainly a good option to consider, IF you can afford it. The two and a half hours of help a week I get from a local private care agency costs around £280 to £300 a month, now remember that this help consists of just some light cleaning and taking a sweet old lady to the local shop to buy her wine. I do all the rest, the agency’s hourly rate for their carers is £27.60 which seems to be about right for the UK as it usually falls between £15 and £30 per hour. Let’s do some quick maths, if you were being paid the average rate to provide 35 hours of care a week, you’d expect to earn around £2,100 a month. The average salary for a carer in the UK is about £24,000 a year, up to about £36,000. And that’s with breaks, extra pay for overnight stays, holidays and a pension – as it should be- this is a job. For unpaid carers claiming the allowance, it works out to about £307 a month, with no breaks or holidays, most likely providing 24/7 care, and with no pension as previously stated.
Hardly fair, is it? Unpaid carers are ignored and disrespected, and we’re mainly too busy and tired to make a fuss. These are also uncomfortable topics which nobody wants to think about. There are charities and associations that try to raise these issues into the public consciousness and lobby the government to give unpaid carers a better deal, I encourage you to look them up and champion their causes.
In conclusion, I implore you, make a plan. Speak to your family, start putting money aside in a carer fund, pay into a private pension, make a caring plan with your loved ones should the worst happen, research the topic etc. Find out what provisions your employer may be able to provide, which of your family member(s) may be able to provide the most care with the least financial impact. Most families scramble when these situations happen and some members (usually women) always end up bearing of the brunt, which is unfair, especially if that person happens to be you.
To quote the over-quoted Maya Angelou: “hope for the best, and be prepared for the worst.”
References for this article:
- https://news.sky.com/story/value-of-unpaid-carers-in-england-and-wales-equal-to-nhs-multi-billion-pound-budget-according-to-research-12871766
- https://www.moneymarketing.co.uk/news/unpaid-care-reduces-pension-pot-by-5000-per-year/
- https://www.carersuk.org/help-and-advice/financial-support/carers-allowance/?gclid=CjwKCAjwh8mlBhB_EiwAsztdBLK5h9BdLBvIfFHQmsy1L9W5o0VsPBUwmD7oUpCu6XDPSU7kBeSDBhoCFP0QAvD_BwE
- https://ukcareguide.co.uk/home-care-costs/#:~:text=Continuing%20Healthcare%20scheme.-,How%20much%20does%20a%20carer%20cost%20per%20hour%20in%20the,%C2%A318%2D20%20per%20hour.
- https://www.totaljobs.com/salary-checker/average-carer-salary