Carer’s Allowance is a vital financial aid provided by the UK government to individuals who dedicate a significant portion of their time to caring for someone with substantial care needs. This benefit acknowledges the hard work and commitment of carers, offering them a modest but essential income to help cover the associated costs.
Payment Options
Carer’s Allowance can be received in two ways: either weekly in advance or every four weeks, with payments directly deposited into your bank account. The current weekly amount is regularly reviewed and may change annually to reflect inflation or policy adjustments.
Eligibility Criteria
To qualify for Carer’s Allowance, several specific criteria must be met, ensuring that the support is targeted at those who genuinely need it:
- Time Commitment: You must spend at least 35 hours per week caring for someone.
- Residency: Your eligibility is based on where you live, not where the person you care for resides.
- Earnings: You must earn less than £139 per week after tax and allowable expenses.
- Pension Income: If you receive a pension, it must be less than £81.90 per week.
- Age: You must be at least 16 years old.
- Education: You should not be in full-time education or studying for more than 21 hours per week.
- Immigration Status: You must not be subject to immigration control.
- Residency History: You must have lived in England, Scotland, or Wales for at least two of the last three years.
Care Recipient Requirements
The person you care for must be receiving one of the following benefits for you to be eligible:
- Personal Independence Payment (PIP): Daily living component
- Disability Living Allowance (DLA): Middle or highest care rate
- Attendance Allowance
- Constant Attendance Allowance: Linked to Industrial Injuries Disablement Benefit or War Disablement Pension
- Armed Forces Independence Payment
- Child Disability Payment: Middle or highest care rate
- Adult Disability Payment: Standard or enhanced rate daily living component
Payment Amount
In 2024, the first Carer’s Allowance Supplement payment of £288.60 was made in June. To qualify, you needed to have received Carer’s Allowance on April 8, 2024. A second payment of the same amount is scheduled for December 2024, with eligibility based on receiving Carer’s Allowance by October 7, 2024.
Shared Care Considerations
If you share caregiving responsibilities with another person, only one of you can claim Carer’s Allowance. It’s important to discuss with the other carer who will claim, as the Department for Work and Pensions (DWP) will decide if both apply.
Earnings and Allowable Expenses
Your earnings include income from employment or self-employment after tax, National Insurance, and allowable expenses, such as:
- 50% of your pension contributions
- Job-related equipment (e.g., specialist clothing)
- Unpaid travel costs between workplaces
- Business expenses if you’re self-employed
You can also deduct care costs for your children or the disabled person while you work, provided these costs are less than or equal to 50% of your earnings and the carer is not your spouse, partner, parent, child, or sibling.
Non-Countable Earnings
Certain types of income do not count towards your earnings limit, including:
- Money from an occupational or private pension
- Contributions to living or accommodation costs from someone you live with (not a tenant or boarder)
- The first £20 and 50% of any remaining weekly income from a boarder
- Loans or advance payments from your employer
Interaction with State Pension
If you receive a State Pension, you cannot receive the full amount of both Carer’s Allowance and your pension simultaneously. If your pension exceeds £81.90 per week, you won’t receive Carer’s Allowance, but your Pension Credit payments may increase instead.
How to Apply
You can apply for Carer’s Allowance online via the government’s website or by post. For a postal application, forms are available online, or you can request one from the Carer’s Allowance Unit by phone or textphone.
Required Documents
When applying, you’ll need:
- Your National Insurance number
- Bank or building society details
- Employment information, including your latest payslip
- P45 if you’ve finished work
- Course details if you’re studying
- Earnings information to ensure you don’t exceed the weekly limit
- Documentation of allowable expenses
- Details of the person you care for, including their National Insurance number (if 16 or older) and benefit reference number
This financial support is essential for carers, helping them manage the demands of their caregiving responsibilities while easing some of the associated financial pressures.
FAQs
How often is Carer’s Allowance paid?
It’s paid either weekly in advance or every four weeks.
Can I work and still receive Carer’s Allowance?
Yes, but you must earn less than £139 per week after expenses.
What if I share care with another carer?
Only one carer can claim the allowance; discuss who will apply.
How do I apply for Carer’s Allowance?
You can apply online or by post through the government’s website.
Does Carer’s Allowance affect my State Pension?
If your State Pension is more than £81.90 weekly, you won’t receive Carer’s Allowance.
