Almost 2,000 people in Lancaster and Morecambe receive a carer's allowance

New figures from the Department for Work and Pensions show there were 1,910 people receiving the benefit in Lancaster as of last summer, the most recent available statistics.

A further 961 people were judged to be eligible for carer's allowance by the Department for Work and Pensions, but were not claiming it – potentially due to receiving other benefits which disqualify them from it, or receiving a top-up to other benefits instead.

Millions of people provide unpaid care to family, friends and loved ones across the country.

Those providing care for more than 35 hours and earning less than £151 a week are eligible for a carer's allowance – a weekly payment of £81.90.

The Government recently revealed 34,500 people across the country had been 'overpaid' the benefit, due to breaching the earnings limit, and have been fined as a result with some fines reaching 10s of thousands of pounds.

The Carers UK charity has called for the benefit to be reformed, with the earnings limit set at 21 hours of minimum wage work a week – currently £240.24 for those aged 21 or over.

Tamara Sandoul, head of policy and public affairs, said: "Millions of unpaid cares who are eligible do not apply for carer’s allowance. As well as it being a relatively low benefit, as we have seen from various news reports the risk of running up overpayments may not be worth it."

Census data from 2021 suggests there are 5.7 million unpaid carers across the UK, and 2.1 million people provide at least 35 hours of care a week in England and Wales.

Carer's UK is calling for "wide ranging" reform of the benefit, and wants to see a new, non-means tested payment for carers of state pension age.

Speaking in Parliament, Liberal Democrat leader Ed Davey said: "Carers often work long hours in very difficult, trying circumstances and they receive the lowest benefit of the lot."

He praised the work of unpaid carers, adding they save the NHS and the Government billions of pounds.

"Were it not for unpaid family carers or carers who receive the very limited allowance, the NHS would literally fall over," he added.

Across England, nearly 1 million people were claiming the benefit as of last summer with a further 400,000 deemed eligible by the DWP.

Unpaid care is predominantly carried out by women – 70% of recipients of carer's allowance in Lancaster were female.

Across the North West, 133,000 were receiving the benefit last summer with a further 56,000 eligible for it.

A spokesperson for the DWP said: "We recognise the importance of carers who play a vital role in our communities, and we keep all of our benefits under constant review.

"From April, Carer’s Allowance increased to £81.90 a wee, giving carers around an extra £1,500 a year compared to 2010."

"Carers in low income households may also be eligible for additional financial support such as Universal Credit, or Pension Credit," they added.