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LOCAL MP MARKS CARERS WEEK BY CALLING FOR ACTION TO HELP CARERS HIT BY TAX CHANGES
June 10, 2008 2:28 PM
Dunfermline and West Fife MP Willie Rennie is marking this year's Carers Week, which runs from 9 to 15 June, by calling on the Government to take urgent action to help carers who have been made worse off as a result of the abolition of the 10p rate of tax.
Rules governing the Carer's Allowance mean that a large number of carers lost out as a result of the abolition of the lowest rate of tax. In order to receive the payment, carers' earnings cannot exceed £95 per week. Taking into account carer's allowance, this means that maximum individual earnings equate to £7,568, putting working carers in the group most affected by the abolition of the 10p tax rate. And, despite the Government's subsequent announcement of a rise in the threshold for the basic rate of tax, there remain 1.1 million people, who earn between £6,500 and £12,800, left worse-off, with many carers falling into this category.
Mr Rennie has signed a parliamentary motion which calls upon the Government to use the forthcoming National Strategy for Carers to help all those carers who have lost out as a result of these tax changes. He said:
"The difference that carers make to the lives of those for whom they care is priceless. They make a huge contribution, and it is no exaggeration to say that our public services would be in crisis if the six million carers in the UK stopped their work.
"Unfortunately, the Government has made a mockery of their commitment to carers by penalising them in this way. The question that really matters now is what Ministers are going to do to fully compensate the carers who have been left worse off.
"The Prime Minister and the Chancellor are obsessed with tax credits, but the reality is that most carers care for adults and are therefore not entitled to child tax credits, and nor do they qualify for working tax credits because they cannot work the required hours.
"The Government should use the opportunity of the National Strategy for Carers to introduce urgent measures to help those who give up so much of their time to care for relatives, friends and neighbours, including the estimated one in eight people in Dunfermline and West Fife."
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