Loughton expresses fears over impact of welfare reforms on young carers

The Welfare Reform Bill proposes replacing the severe and enhanced disability premiums that currently go to disabled parents with its universal credit scheme in 2013.

But in a letter to welfare reform minister Lord Freud, which has been leaked to The Guardian, Loughton said the move would leave young carers out of pocket and undermine government policy to ensure they are effectively supported and recognised.

He warned Lord Freud that by cutting financial support to young carers and their parents this could lead to greater costs for health and children’s services.

The Children’s Society has welcomed Loughton’s comments. The charity estimates that around 42,000 children will lose out if the bill becomes law without an amendment to protect young carers.

A Children’s Society spokesman said: "Because it is a payment to disabled adults I don’t think the government considered the effect it would have on young carers who benefit from this money. It’s as if young carers were an afterthought."

The charity estimates that around families will be £70 a week worse off without the severe disability premium. Families relying on the enhanced disability premium will lose around £3,500 a year.

A Department for Work and Pensions spokeswoman said: "The severe disability premium was never intended as a payment to young carers, it was designed as a support for severely disabled people who live alone. It's the role of local authorities and social services to support young people with caring responsibilities to achieve their potential and £2.2bn of funding is provided a year to support vulnerable children and their families and an extra £1.5m has been made available to support young carers.

"Universal credit will create a simpler, fairer and more affordable system and will target support to those severely disabled people who need it most. Disabled adults in greatest need and some disabled children will receive more support than now and there will be no cash losers as a result of the transition to universal credit.

"We continue to spend over £40bn a year on disabled people and their services, and our commitment to help support disabled people live independent lives runs at the heart of our welfare reforms."

The bill reached the committee stage in the House of Lords today (4 October), where Lords will scrutinise the bill line by line.