Carers to lose out in 10p rate cut

People caring for elderly, sick or disabled relatives will lose out under new tax rules, according to Rochdale MP, Paul Rowen. Mr Rowen says because those claiming Carer's Allowance are only allowed to earn a certain amount each week, they are likely to fall into the group affected by the abolition of the 10p tax rate. 

Mr Rowen said: "Carers provide an invaluable resource to society through their dedication and hard work. They have precious little thanks as it is and now the Government is planning to make it even harder for them to make ends meet. Many carers are in a Catch 22 situation over benefits. To qualify for the Carer's Allowance, they have to work less than 17 hours a week, but if they wanted to claim Working Tax Credits to make up for the tax hike, they would have to work more than 30 hours a week!"

Mr Rowen, a Lib Dem Work and Pensions' Spokesperson continued: "Most Carers look after adults and so they can't claim Child Tax Credits either. They are in a trap, and doubling their tax rate to 20p in the pound really knocks them when they are down. These are the one of the groups of people who will not benefit from Gordon Brown's tax u-turn. I will be raising this issue in Parliament. Already this year, they have turned down my sensible proposals to give carers free transport. This is a huge kick in the teeth and I hope that this injustice is reversed."

Date article online: 28/04/2008