Carer’s Allowance is a financial support program provided by the UK government to individuals who dedicate a significant portion of their time to caring for someone with substantial care needs. This allowance aims to acknowledge and alleviate some of the financial pressures faced by carers, offering them a modest income to help cover their expenses.
The payment can be received either weekly in advance or every four weeks, directly deposited into the carer’s bank account. The current weekly payment is subject to annual reviews, ensuring it aligns with inflation and living costs.
Eligibility Criteria
To qualify for Carer’s Allowance, you must spend at least 35 hours per week caring for someone. The location of the person you care for doesn’t impact your eligibility; what matters is where you, the carer, reside.
Earnings and Pension Limits
Your earnings must be below £139 per week after tax and allowable expenses to qualify for this allowance. If you receive a pension, it should be less than £81.90 a week; otherwise, you won’t be eligible.
Age and Education Requirements
You must be at least 16 years old to claim Carer’s Allowance. Additionally, you should not be in full-time education or studying for more than 21 hours per week.
Residency
To be eligible, you must have lived in England, Scotland, or Wales for at least two of the last three years and normally reside in one of these countries. You must not be subject to immigration control.
Person You Care For
The person you are caring for must be receiving one of the following benefits:
- Personal Independence Payment (PIP): Daily living component
- Disability Living Allowance (DLA): Middle or highest care rate
- Attendance Allowance
- Constant Attendance Allowance: At or above the normal maximum rate with an Industrial Injuries Disablement Benefit
- Constant Attendance Allowance: At the basic (full day) rate with a War Disablement Pension
- Armed Forces Independence Payment
- Child Disability Payment: Middle or highest care rate
- Adult Disability Payment: Daily living component at the standard or enhanced rate
Payment Amount
For 2024, the first Carer’s Allowance Supplement payment was issued in June, amounting to £288.60. To receive this, you must have qualified for Carer’s Allowance by 8 April 2024. The second supplement, also £288.60, is scheduled for December 2024. You must qualify by 7 October 2024 to receive it.
Shared Care
In situations where care is shared between two individuals, only one person can claim the Carer’s Allowance. It’s essential to discuss and decide who will apply, as the Department for Work and Pensions (DWP) will determine the beneficiary if both apply.
Earnings Calculation
Your earnings are calculated after deducting taxes, National Insurance, and allowable expenses. These expenses include:
- 50% of your pension contributions
- Equipment required for your job (e.g., specialist clothing)
- Travel costs between workplaces not covered by your employer (e.g., fuel or train fares)
- Business costs if you are self-employed (e.g., a computer used exclusively for work)
If you hire someone to care for the disabled person or your children while you work, the costs can be considered an expense, provided they do not exceed 50% of your earnings and the carer is not a close relative.
Non-Countable Earnings
Certain incomes are excluded from the earnings calculation, such as:
- Occupational or private pension payments
- Contributions towards living or accommodation costs from someone you live with (excluding tenants or boarders)
- The first £20 a week and 50% of the remainder of any income from someone boarding in your home
- Loans or advance payments from your employer
State Pension
If you receive a State Pension, you cannot claim the full amount of both the State Pension and Carer’s Allowance. If your pension is £81.90 a week or more, you won’t receive a Carer’s Allowance payment. However, if it’s less, Carer’s Allowance will cover the difference.
Pension Credit
If your State Pension exceeds £81.90 a week, you won’t get Carer’s Allowance, but your Pension Credit payments may increase instead.
How to Apply
Applying for Carer’s Allowance is straightforward through the UK government’s website.
Postal Application
For those who prefer paper forms, you can download the forms from the government’s website or request them from the Carer’s Allowance Unit.
Ensure you have the following documents ready when applying:
- National Insurance Number
- Bank or Building Society details
- Employment details (if applicable)
- P45 (if you’ve finished work)
- Course details (if studying)
- Earnings information
- Expense documentation
- Information about the person you care for
Send your completed form to the Carer’s Allowance Unit, Wolverhampton.
This financial assistance acknowledges the invaluable role of carers, providing them with some financial relief as they care for those in need.
FAQs
How much time must I spend caring each week?
At least 35 hours per week.
Can I receive Carer’s Allowance and a pension?
Only if your pension is below £81.90 weekly.
What benefits must the person I care for receive?
They must receive specific disability or care benefits.
Can I claim if I’m studying full-time?
No, full-time students aren’t eligible.
How do I apply for Carer’s Allowance?
You can apply online or by post.