More than 500,000 people in the UK who are entitled to Carer's Allowance are not claiming it, according to money experts PensionBee. The benefit is worth £86.45 a week, or £1,495.40 a year, and also provides automatic National Insurance credits that count towards the state pension.
Who qualifies for Carer's Allowance
Carer's Allowance is a weekly government payment for people who provide at least 35 hours of unpaid care a week. PensionBee said in a social media post: "Did you know there's a government payment that over half million people in the UK could be getting but aren't? It's called carers' allowance."
"Carers' Allowance is a weekly payment from the government for people who provide at least 35 hours of unpaid care a week. It's currently £86.45p a week. Now it might not sound life-changing, but it's there."
The company added: "And here's the part that gets even less attention. Carers Allowance doesn't just pay you a weekly amount; it also comes with automatic National Insurance credits, and those National Insurance credits count towards your state pension."
"So if you've reduced your hours or stopped working to care for someone, claiming Carer's Allowance isn't just about the weekly payment. It can also help keep your state pension record in better shape than it would be otherwise."
Earnings limit change planned
To qualify, a person must care for someone for at least 35 hours a week, and that person must receive certain disability benefits. Under current rules, people earning over £204 a week after tax, National Insurance and expenses are no longer eligible for the benefit.
The government has announced a change ahead of the autumn Budget. Andy Burnham has said this "cliff-edge" ending of the benefit will be replaced by a tapered reduction.
Carers UK welcomed the news. Emily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, said: "This is really welcome news. The cliff edge earnings limit on Carer's Allowance is one of the most punitive in the benefits system - an 'all or nothing' measure. There is far too much uncertainty and worry for carers about going over the cliff edge."
"Unpaid carers are shocked and horrified to find they lose 100% of their benefit, rather than £1 for every additional £1 they earn. They have told us that they have never understood why the system is so inflexible."
"Carers who can balance work and caring responsibilities must be able to do so without being penalised. Getting rid of the earnings limit is a very practical measure which carers have been asking for - the ability to earn a little more by doing an hour or two overtime, an extra shift, or even higher paid work."
"Making this change and investing in getting rid of the cliff edge earnings limit for Carer's Allowance is a significant step towards a fairer system and a considerable breakthrough after years of dedicated campaigning."
What Carer's Allowance offers
According to the Department for Work and Pensions (DWP): "You could get £86.45 a week if you care for someone at least 35 hours a week and they get certain benefits. You do not have to be related to, or live with, the person you care for."
"You do not get paid extra if you care for more than one person. If someone else also cares for the same person as you, only one of you can claim Carer's Allowance."
The DWP also warns: "Carer's Allowance can affect the other benefits that you and the person you care for get. You have to pay tax on it if your income is over the Personal Allowance."
For each week of Carer's Allowance, recipients automatically get National Insurance credits that count towards pension entitlement and fill gaps in their NI record. Recipients may also be able to apply for support from their local council, a Council Tax Reduction, Universal Credit if on a low income or out of work, Pension Credit if over working age, and grants and bursaries for courses and training.
Eligibility and how to claim
The person being cared for must already receive one of several benefits, including Personal Independence Payment (daily living component), Disability Living Allowance (middle or highest care rate), Attendance Allowance, or Armed Forces Independence Payment, among others.
Carer's Allowance cannot be claimed if another carer is already claiming Carer's Allowance, Carer Support Payment, or the extra Universal Credit amount for caring for the same person. The DWP advises speaking to the other carer about changing benefits, and if they do not agree, a claim can still be made and the DWP will decide who receives the benefit.
Applicants must be 16 or over, spend at least 35 hours a week caring, have been in England, Scotland or Wales for at least 2 of the last 3 years (unless a refugee or with humanitarian protection status), normally live in England or Wales (or live abroad as a member of the armed forces), not be in full-time education, not study for 21 hours a week or more, not be subject to immigration control, and have earnings of £204 or less a week after tax, National Insurance and expenses.
Those living in Scotland should apply for Carer Support Payment instead. Claims can be backdated by up to 3 months, and applications require details such as a National Insurance number, bank details, employment information, and details of the person being cared for.
