The carer's allowance is a social assistance scheme which provides an income maintenance payment to people, who are providing elderly or incapacitated pensioners or certain persons with disabilities with full-time care and attention, and whose incomes fall below certain limits. At the end of 1997, 10,330 people were in receipt of a carer's allowance at a cost of over £37 million.
Since its introduction in 1990, the allowance has been improved and expanded progressively over the years. As announced in the budget, the weekly personal rate of the carer's allowance has been increased by £5, from £70.50 to £75.50 for those over the age of 66, and £3 for carers under 66 from £70.50 to £73.50.
The budget also provided for three additional improvements for carers. The first two of these are of a more technical nature and benefit a small number of people. These improvements are a disregard of non-national disability pensions up to the maximum level of the old age contributory pension in assessing means and the payment of carer's allowance for six weeks after death to carers whose spouses were not in receipt of a social welfare payment. The third improvement is the provision of a free travel pass to all those in receipt of carer's allowance in their own right.
Government policy places an increasing emphasis on the role of community care in supporting people who wish to remain in their own homes and in their own communities. The informal caring which carers provide is crucial in this regard.