Caring for someone can be one of the most rewarding experiences life has to offer, but it can often come with significant financial challenges. Whether you’ve reduced your working hours to provide care or found yourself struggling to balance care costs with everyday bills, you’re not alone. Many of the UK’s 5.7 million carers find themselves facing financial pressure – and even crippling levels of debt – while providing invaluable support to their loved ones.
The good news is that there are various ways to control your finances and manage your debt with professional support while maintaining your caring responsibilities. With this in mind, this guide explores practical solutions for handling debt as a carer, from understanding your financial rights to accessing specialist support. We’ll look at steps you can take today to start improving your financial situation, while continuing to provide the vital care your loved one needs.
Understanding your financial rights as a carer
As a carer, you have access to several financial support options that can help ease the pressure. Carer’s Allowance, the main government benefit for carers, can currently provide successful applicants with £81.90 a week, for example. As we cover in our guide on Carer’s Allowance, while claiming this benefit might affect other benefits you receive, it often forms the foundation of a broader support package that can include Universal Credit’s carer element and Council Tax Reduction.
Your future financial security matters too. However this can often be significantly impacted if you have to take time away from your career to act as a carer for a loved one. Carer’s Credit helps protect your State Pension by filling gaps in your National Insurance record while you’re caring, ensuring you don’t lose out on retirement benefits due to your caring responsibilities. On top of this, carers are entitled to a Carer’s Assessment from your local authority, which can lead to practical support like respite care funding or direct payments – both of which can significantly impact your ability to manage work and finances.
Finally, if you’re employed and acting as a carer for a loved one, you have the right to request flexible working arrangements with your employer, and are legally protected against discrimination.
Financial tips for carers
1. Create a realistic budget and cut unnecessary costs
Whether you’re in good financial health or struggling with debt, becoming a carer is likely to bring additional pressure to your finances. For this reason, managing your finances effectively is more important than ever when caring for someone else. For example, as a carer, your income might become more complex, and see you combining benefits, part-time work, and possibly contributions from the person you care for. To help keep track of your ins and outs, think about creating a detailed budget that accounts for all your sources of income and all essential expenses.
When you’ve done this, you can start looking for areas where you can cut costs without compromising the quality of care you provide. This might include reviewing utility providers, finding more affordable insurance options, or accessing carer discounts. It’s also worth noting that many organisations offer special rates for carers, from leisure centres to retail outlets. Taking advantage of these discounts can help stretch your budget further.
2. Prioritise essential debts first
When managing debt as a carer, it’s important to differentiate between priority and non-priority debts. Priority debts include mortgage or rent payments, council tax, utility bills, and care-related expenses. These should always be paid first, as the consequences of not paying them can be more severe than other types of debt.
With this in mind, try to create a payment hierarchy that ensures essential services remain uninterrupted. If you’re struggling to maintain payments, be sure to check whether you’re receiving all the benefits and support you’re entitled to. It’s also worth noting that the person you care for might also be eligible for additional benefits that could help ease the financial pressure on both of you. Be sure to check for financial support they might be eligible for, such as Disability Living Allowance (DLA) or Personal Independence Payments (PIP).
3. Contact creditors early and negotiate
Sometimes it can be hard to face up to the fact you’re struggling with debt. However, by facing the situation head on, you put yourself in a better position to start dealing with the issue one step at a time. Taking this into account, you should contact your creditors and explain your circumstances if you are struggling to service debts. Many creditors have specialist teams trained to support customers in unique circumstances, including carers. It’s also important not to wait until you miss payments to reach out. Contact your creditors as early as possible to explain your situation as a carer and discuss your options. They may be able to:
- Offer payment holidays during particularly challenging periods
- Reduce interest rates or charges
- Create a more manageable repayment plan
- Provide breathing space while you seek debt advice.
If you do do this, remember to always keep detailed records of all communications and any agreements made.
4. Seek help from professional specialists
When you’re managing both caring responsibilities and financial challenges, professional support can make all the difference. If you’re struggling with debt and are looking for support, you can get free debt advice at organisations like MoneyHelper and Citizens Advice.
Here at MoneyPlus, our expert advisers can also help. We understand the unique pressures carers face and can offer personalised debt advice that works around your schedule. We’ll review your complete financial situation, including benefits and part-time work, to ensure you’re receiving all available support. Our specialist team can also guide you through potential debt solutions, such as Debt Management Plans (DMPs) or Individual Voluntary Arrangements (IVAs).
Remember, seeking help early often leads to better outcomes, so don’t hesitate to contact our
team for a confidential discussion about your options. Alternatively, you can contact MoneyHelper for free advice.
Can I have a debt written off as a carer?
While being a carer doesn’t automatically qualify you for debt write-off, several debt solutions could help reduce or clear your debts. An IVA, for example, can write off a significant portion of your debts after a set period of time (typically five or six years), while allowing you to make affordable monthly payments in the meantime.
For carers with limited income and assets, Debt Relief Order (DRO) could also be an option. This could write off eligible debts after 12 months. However, like all debt management solutions, there are conditions and consequences attached. For this reason, always take the time to research and carefully consider your options. Before making any decisions, it’s a good idea to consult with an FCA-regulated debt advice service like MoneyPlus Advice. We specialise in debt solutions and can help you find the best option for your personal circumstances.
