Anyone who has cared for a loved one at home will know that it can be a lonely, frustrating, and at times devastating experience.

But on top of the emotional and physical strain of caring comes the threat of “alarming levels of financial hardship”, according to Carers UK.

A 12-month investigation by the charity exposes the stark reality faced by those looking after people who are older, disabled or seriously ill, in terms of loss of savings, debt and struggling to afford food and heating The Caring and Family Finances Inquiry – the most extensive cumulative assessment to date of the impact of benefits changes on families of disabled people – also reveals that, despite rapid rises in the number of families providing care, Government cuts will leave carers facing a shocking £1 billion cut.

There are more than 6.5 million carers in the UK, saving the economy more than £100 billion a year, and it is estimated that three in five people will become a carer of some kind at some point in their lives.

Yet, according to Carers UK, carers not only feel they’re not recognised or valued, they also feel they are victims of increasing public criticism for claiming social security entitlements.

Helena Herklots, chief executive of Carers UK, said: “Those caring, unpaid, for loved ones save society vast sums, but at huge personal cost – a cost this inquiry shows is pushing families to the brink. Caring is often a dual blow, with household incomes hit by reduced earnings, and bills rising as a result of the extra costs of ill-health or disability.

“With an ageing population, more of us will care for loved ones – yet a blizzard of cuts to social care and benefits mean there is less and less support available. This country’s carers are being badly let down. Unless Government acts to stop the cuts to support carers, there is the risk that families will be pushed to breaking point and left unable to care for their own.”

Recommendations in the inquiry, published today, call for an end to cuts to carers’ benefits and support services; urgent reform of financial help for carers; and the Government to make a commitment that future policy will not leave carers worse off, by implementing a ‘carer’ test for future benefits and social care proposals.

The main carers’ benefit, carer’s allowance, is currently £59.75 a week for a minimum of 35 hours’ caring – equivalent to £1.67 an hour. It is not available to those who earn more than £100 per week or to those in receipt of the basic state pension.

Carers giving evidence to the inquiry said keeping the vulnerable and sick warm meant footing bills for having heating on for 12 or more hours a day. Caring for someone with incontinence problems, or who is tube-fed, often means three or four washloads a day, then there are petrol and taxi travel costs to medical appointments.

Carers also face the increasingly prohibitive price of buying-in care, so they can go to work or have some respite. Those who quit work or cut employment hours to care face a cost to future financial security.

Carers UK has condemned what it predicts will be a £1 billion cut to financial help in the next four years, and says cuts are already forcing families into debt, arrears and food poverty. Cuts to support for fulltime carers, between 2011 and 2018, mean that 24,457 fewer people will be entitled to carer’s allowance with implementation personal independence payment and at least 40,000 carers will see rent support cut by more than £700 a year because of housing benefit changes. At least 2,946 carers will see incomes capped, losing an average of £105 a week.

Ruth Bowen, from Cleckheaton, cares for her father, who has dementia and lives with her. She fears the cut to carers’ incomes will push her into debt.

“Lots of families who are carers are already struggling because, let’s face it, most ordinary people are these days. Added to that are all the costs that come with caring. You see how it can lead to food and fuel poverty, not to mention rent and mortgage arrears,” she says.

“I’m still working but I may well have to become a full-time carer when my father’s condition worsens, and we’re facing cuts to disability benefits and carers’ allowances.

“Carers look after people in their homes, saving the health service billions, but if we can’t afford to continue doing so there’ll be extra pressure on the state to provide the care instead.”