Carer’s Allowance is a payment issued by the Department for Work and Pensions (DWP) to those caring for someone who receives certain benefits, for at least 35 hours a week. For those who are eligible, a payment of £67.25 per week will be issued to help with associated caring costs. However, it is important to note how a payment of Carer’s Allowance could impact the state pension, and in turn, the income of certain state pensioners.
Those already on a means-tested benefit could have their sum increased to provide further financial support.
Individuals are therefore encouraged to reach out to the DWP to inform them of their circumstances.
The Government will then be able to provide further guidance on the matter.
As stated on the Government’s official website, one such means-tested benefit which could be impacted is Pension Credit.
Payments will increase for those who are eligible who also meet the criteria for Carer’s Allowance.
Also important to note is the effect a Carer’s Allowance claim could have on the person being cared for.
This could have a potentially financially detrimental impact on someone who is claiming and so being aware of this is key.
The person being cared for will stop receiving a severe disability premium paid out with their benefits once a Carer’s Allowance claim is made.
In addition, any extra amount a person may receive for severe disability paid with Pension Credit will also be removed.
Finally, an individual may also be prevented from receiving a reduced rate of Council Tax.
Carer’s Allowance, however, is one of the few benefits which does not count toward the benefit cap.
As a result, people will be able to claim the sum without worrying about impacts on some other payments.
If a person wishes to apply for Carer’s Allowance, there is certain information they will need to hand.
- National Insurance number
- Bank or building society details (unless in receipt of the state pension)
- Employment details and latest payslip if a person is working
- P45 if a person has recently finished work
- Course details for those who are studying
- Details of any expenses, for example pension contributions
Key information for the person being cared for is also equally important, including date of birth and address, as well as National Insurance number for over 16s.
Do you have a money dilemma which you’d like a financial expert’s opinion on? If you would like to ask one of our finance experts a question, please email your query to email@example.com. Unfortunately we cannot respond to every email.