Caring responsibilities are among the most common life events affecting vulnerable customers, according to new data from MorganAsh’s Resilience System (MARS).
The findings place carer-related issues alongside bereavement and divorce or separation as the top challenges facing consumers across the financial services sector.
The analysis draws on data from a broad range of firms operating in credit, debt, mortgage and financial advice, insurance, and the building society sector. The figures show that around 9% of women and 7% of men have highlighted the difficulties they face as unpaid carers – whether for elderly relatives or dependent children. These findings align closely with national statistics, with Carers UK estimating that up to one in five UK adults currently provide care.
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In its latest State of Caring report, Carers UK underscored the significant financial and health burdens associated with being a carer. Many experience deteriorating health outcomes and increasing financial pressure, particularly in the absence of effective government support.
The latest data from MARS emerges against a wider backdrop of increasing consumer vulnerability. The FCA’s Financial Lives survey revealed that 49% of adults in the UK exhibit at least one characteristic of vulnerability, with nearly five million in poor health. Of this group, more than half struggle to manage finances or interact with providers.
Health-related vulnerabilities identified through MARS include alcohol dependency, diabetes, learning difficulties, mobility challenges, and hearing impairments. These issues are particularly prevalent among older demographics, reinforcing the need for early intervention and tailored support strategies.
Andrew Gething, managing director of MorganAsh, said: “When considering how to manage customer vulnerability, conversation often focuses on visible conditions such as blindness, financial distress or consumer understanding. Life events such as divorce or separation and bereavement were always likely to be at the top, but we did not expect to find carer issues and potential financial coercion so high.
“With clear challenges around financial resilience and poor health – particularly for unpaid carers – we need to be building a complete picture around all our clients to have the best chance of mitigating the difficulties they face and understanding the outcomes for key groups, such as carers. We cannot do this with robust data, which requires consistent assessment and the right processes and technology.”
Johnny Timpson OBE, chairman of MorganAsh and a long-standing advocate for UK carers, was sharply critical of the state’s handling of carers allowance, calling it “an appalling scandal.” He pointed to mounting instances where carers have lost vital financial support due to failures in a system that relies on overworked carers to self-report overpayments. Many, he noted, are being driven into negative budgets.
“Carers are under immense pressure and it’s absolutely critical that financial services steps up where Government continues to fall short,” said Timpson. “With the right assessment discovering the right information, financial services firms can provide the right recommendations and support, as well intervene early to determine if needs have changed or anything is different. There’s no question that being a carer is a major life event that is hugely common – it can come at any time of life and be for extended periods.”
To help meet this growing need, MorganAsh offers a specialist Care Navigator service – an optional addition to its MARS vulnerability system – which assists consumers in navigating the often complex care landscape. Staffed by experienced nurses, the service aims to ease the burden on families by offering empathetic and practical guidance on arranging care, particularly for elderly relatives. The service is promoted by LV= to advisers using its products.
“We launched our Care Navigator service some years ago in response to financial firms becoming bogged down with dealing with their customers’ care issues,” said Gething. “Consumer Duty has brought this to the forefront and, although it may not be a vulnerability firms have to mitigate, assisting a customer with care for a parent or family member has to be one of the most appreciated services we can provide.”
