Below, we outline the most important things to know about Carer’s Allowance, including eligibility criteria, the current rates, how you can apply to receive it and whether it affects other benefits you may be eligible for.
Who can claim Carer’s Allowance?
In order to qualify successfully for Carer’s Allowance, you need to meet certain eligibility criteria. It’s not just your own circumstances that have to be taken into account; part of the criteria refers to the person you care for.
Firstly, you must:
- Be over the age of 16
- Spend 35 hours each week or more caring for someone
- Have spent two of the last three years in England, Scotland or Wales (unless you have humanitarian protection status or are a refugee)
- Be a resident of England, Scotland or Wales, or live abroad as part of the armed forces
- Earn £151 a week or less after deductions like tax, National Insurance (NI) and expenses.
You must not:
- Attend full-time education or study for 21 or more hours a week
- Be subject to immigration control.
In addition, the vulnerable person you provide care for must receive one of the following benefits already:
- The Personal Independence Payment (PIP) for daily living
- The Disability Living Allowance, receiving the highest or middle care rate
- The Pension Age Disability Payment
- The Attendance Allowance
- The Constant Attendance Allowance at the usual maximum rate or higher alongside an Industrial Injuries Disablement Benefit
- The basic rate of Constant Attendance Allowance alongside a War Disablement Pension
- Adult Disability Payment for daily living at the standard or enhanced rate
- Child Disability Payment at the middle or highest care rate
- Armed Forces Independence Payment.
You don’t have to be related to the person you’re caring for in any way, but it can complicate matters if you’re not the only one caring for them. Only one person can receive Carer’s Allowance for a vulnerable individual, so if your co-carer is already claiming this or other carer’s benefits, you might not be eligible.
However, you can still apply for this benefit even if you can’t agree with your co-carer who should claim it. In these circumstances, the final decision on who should receive the funds will fall to the Department for Work and Pensions (DWP).
How much is Carer’s Allowance?
Currently, if you get the full amount of Carer’s Allowance, you’re entitled to £81.90 a week. This is the maximum you can receive; you won’t receive extra funds if you care for multiple people. On top of that, you’ll receive NI credits for every week that you get Carer’s Allowance.
It’s possible that you might be able to apply for other benefits, reliefs, bursaries or grants to help you financially on top of Carer’s Allowance.
How to apply for Carer’s Allowance
To make a claim for Carer’s Allowance you’ll need the following:
- Your NI number (and your partner’s, if applicable)
- Details for your building society or bank (except if you receive a State Pension)
- Information about your employment and your most recent payslip (if you’re in work)
- A P45 (if you’ve left work recently)
- Details relevant to your course (if you’re a student)
- Records of expenses such as pension contributions, childcare or care costs for the vulnerable person while you work.
You’ll also need information about the person you’re caring for, which are:
- Their date of birth
- Their address
- Their NI number (for people older than 15)
- Their Disability Living Allowance reference (for vulnerable people aged 15 or younger).
If necessary, you can make a retroactive claim for as far back as three months. To make an application, visit gov.uk and follow the instructions given.
Does Carer’s Allowance affect Universal Credit?
If you’re currently receiving Universal Credit and need to claim for Carer’s Allowance as well, be aware that your Universal Credit payment will likely be lowered by the same amount you get for Carer’s Allowance. You might, however, be eligible for increased Universal Credit because you care for someone who receives a disability-related benefit – and this applies regardless of whether you’re successful in getting Carer’s Allowance.
Essentially, receiving Carer’s Allowance won’t decrease the overall value of benefit payments you receive, and it may even lead to a small increase. Carer’s Allowance also makes you eligible for Class 1 NI credits, instead of the Class 3 credits Universal Credit offers. This can help you to qualify for other benefits as well as your State Pension.
Other benefit payments aren’t the only thing affected by Carer’s Allowance. If you have an Individual Voluntary Arrangement (IVA) or a Debt Management Plan (DMP) already in place, then receiving Carer’s Allowance could mean an increase in your monthly payments, since your income has risen.
However, you’ll never be asked to pay more than you can afford, and any increases in essential expenses – such as the cost of food, medicine or travel to appointments – will be taken into account as well.
If you’re in debt and need Carer’s Allowance to help you pay it off, an IVA or DMP may be suitable to make your monthly payments more manageable. Speak to a financial adviser today to learn more about your options to tackle your debt.
