George Osborne has announced in his autumn statement that old or sick people who employ carers to look after them will be able to access a Government allowance that eases the burden of national insurance costs for them as ‘small scale employers’.

The Chancellor also used his autumn statement to give hospices a VAT rebate worth more than £4million a year in recognition of the “compassionate support” they provide for hundreds of thousands of people. In addition, the Carer’s Allowance has also been increased from £102 to £110 to make sure increases in the minimum wage do not mean carers with part time jobs lose their support payments.

Emily Holzhausen, director of policy at Carers UK which represents people who care for their own family members, said the measure “goes some way” to reducing the cost of paying for care for families but more needs to be done to bring down the overall costs of care.

She said many of the 1.4 million people providing more than 50 hours unpaid care for loved ones every struggle to afford replacement care when they need support looking after older, sick or disabled loved ones often avoiding employing outside help until they “reach breaking point”.

She said: “Paying the high costs of replacement care creates huge problems for families who need time away from caring to work, look after children or just have a break to look after their own health.

“Families can struggle to afford the care services they need when they are already coping with the financial impact of lost earnings and higher household bills. Many continue without much-needed care services until they reach breaking point.”

Read the full story: Osborne helps those who pay for private carers

Daily Telegraph: Old or sick people who employ carers to look after them handed tax break