Thousands of people receiving the State Pension could still benefit from making a claim for Carer's Allowance, despite a long-standing rule that usually prevents both benefits being paid in full at the same time. Many unpaid carers mistakenly believe they cannot claim Carer's Allowance once they reach State Pension age because the two benefits are classed as "overlapping benefits." While it is true that most people cannot receive full payments of both benefits, experts say it can still be worth making a claim.
Underlying Entitlement Explained
Successful applicants who cannot be paid Carer's Allowance due to the overlapping benefits rule may instead receive what's known as an "underlying entitlement." Although this does not result in a weekly Carer's Allowance payment, it can increase entitlement to means-tested benefits such as Pension Credit through the additional amount for carers. Depending on individual circumstances, it may also increase entitlement to Housing Benefit or Council Tax Reduction.
Qualifying for Carer's Allowance
To qualify for Carer's Allowance, you must normally provide at least 35 hours of care each week for someone receiving a qualifying disability benefit, such as Attendance Allowance, the daily living component of Personal Independence Payment (PIP), Disability Living Allowance care component, Armed Forces Independence Payment, or Constant Attendance Allowance. You must also meet the earnings and other eligibility rules.
The Department for Work and Pensions (DWP) explains that claiming Carer's Allowance can affect other benefits, but says a person's overall benefit income will usually either increase or stay the same. If your State Pension is lower than the weekly rate of Carer's Allowance, you may receive a top-up. However, if your State Pension is paid at a higher weekly amount, you will usually not receive Carer's Allowance because of the overlapping benefits rules.
Why Pensioners Should Still Claim
Even so, the DWP says it is still worth checking your entitlement because establishing an underlying entitlement could increase the amount you receive from Pension Credit or other means-tested support. That means making a claim could leave some pensioners better off, even if they never receive a Carer's Allowance payment.
You may qualify for Carer's Allowance if you are aged 16 or over, provide at least 35 hours of care a week, care for someone receiving a qualifying disability benefit, and meet the earnings and residence rules. Full details on claiming Carer's Allowance and the potential impact on other benefits can be found on GOV.UK.
