Tax breaks mooted for carers in work

Businesses and charities will call next week for tax breaks for employees who care for older relatives so they can invest part of their salary in low-level care services for their loved ones.

Counsel and Care, Carers UK, BT and John Lewis are backing the proposal, which would let employees exchange part of their salary for a tax-free voucher they could spend on care, in the same way as the existing system for child care.

It is estimated that £390m could be invested in services in this way, if 150,000 people take part and vouchers are worth £50 a week.

On this basis, employees would save up to £1,000 a year in tax and national insurance and employers about £300, on average, with a total annual cost to the government of £195m.

The groups suggest the vouchers could be invested primarily in low-level, preventive services that are currently not provided through social services.