Carer’s Allowance is a crucial financial benefit provided by the UK government to individuals who dedicate substantial time to caring for someone with significant care needs.
This allowance is designed to alleviate some of the financial pressures associated with caregiving, recognizing the vital role carers play in supporting individuals with disabilities or serious health conditions.
DWP Carer’s Allowance Payment Overview
The Carer’s Allowance offers a modest but essential source of income to assist carers with everyday expenses. Payments can be made either weekly or every four weeks, directly deposited into the carer’s bank account.
The weekly payment amount is reviewed annually to reflect changes in the cost of living. For 2024, two supplemental payments of £288.60 are scheduled to support eligible carers, with the first payment in June and the second in December.
Carer’s Allowance Eligibility Criteria
To ensure that Carer’s Allowance reaches those who need it most, specific eligibility criteria must be met by both the carer and the person they care for.
General Eligibility Requirements for Carers:
- Care Hours: You must provide care for at least 35 hours per week.
- Residency: Your eligibility is based on your residency in the UK, not where the person you care for lives.
- Earnings Limit: After taxes and allowable expenses, your weekly earnings must not exceed £139.
- Pension: If you receive a pension, it must be less than £81.90 per week to qualify.
- Age and Education: You must be at least 16 years old and not in full-time education or studying for more than 21 hours per week.
- Immigration Status: You cannot be subject to immigration control.
- UK Presence: You must have lived in England, Scotland, or Wales for at least two of the last three years.
Requirements for the Person Being Cared For:
The individual you care for must already be receiving one of the following qualifying benefits:
- Personal Independence Payment (PIP) – Daily living component
- Disability Living Allowance (DLA) – Middle or highest care rate
- Attendance Allowance
- Constant Attendance Allowance – Depending on the rate with an Industrial Injuries Disablement Benefit or War Disablement Pension
- Armed Forces Independence Payment
- Child or Adult Disability Payment – Based on the care rate
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Payment Schedule and Supplementary Payments
Carer’s Allowance is paid weekly, and carers are eligible for two additional Carer’s Allowance Supplements each year. In 2024, these payments are £288.60 each and are made in June and December, depending on the carer’s eligibility status at specified dates (April 8 for the June payment, October 7 for the December payment).
Shared Care Arrangements
If care responsibilities are shared between two or more people, only one carer can claim the allowance at any time. Carers must decide who will apply for the benefit. If more than one person applies, the Department for Work and Pensions (DWP) will choose which individual receives the allowance.
Earnings Calculation for Carer’s Allowance
The earnings limit for Carer’s Allowance is £139 per week, and this is calculated after deducting the following:
- 50% of pension contributions
- Work-related expenses: Such as necessary equipment or travel between work locations.
- Self-employment costs: Including business-related expenses like a computer used for work purposes.
- Care costs: If you pay someone to care for the individual you look after or your children while you work, up to 50% of your earnings can be deducted from this expense.
Non-Countable Earnings
Certain types of income are excluded from the earnings calculation, such as:
- Occupational or private pensions
- Contributions from household members (unless they are tenants or boarders)
- Income from boarding arrangements: The first £20 a week and 50% of the remainder from income related to boarding someone in your home.
- Loans or advances from an employer
State Pension and Pension Credit
Carers who receive the State Pension cannot claim the full Carer’s Allowance. If your pension is more than £81.90 per week, you will not be eligible for Carer’s Allowance. However, if it is less, the government will pay the difference. Additionally, if your State Pension exceeds £81.90, your Pension Credit may be increased instead of receiving Carer’s Allowance.
How to Apply for Carer’s Allowance
There are two main ways to apply for Carer’s Allowance:
- Online Application: The fastest way to apply is through the UK government’s website.
- Postal Application: You can download the form or request one from the Carer’s Allowance Unit. Completed forms should be sent to:Carer’s Allowance Unit
Mail Handling Site A
Wolverhampton WV98 2AB
Contact Information:
- Phone: 0800 731 0297
- Textphone: 0800 731 0317
- Relay UK: 18001 then 0800 731 0297
Required Documentation
To apply for Carer’s Allowance, you’ll need the following:
- National Insurance number
- Bank or building society account details
- Employment details and most recent payslip
- Course details (if applicable)
- Earnings and expense information
- Care recipient’s details, including their date of birth, address, and National Insurance number
Understanding these criteria and following the correct application process will help ensure you receive the financial support you need while caring for someone with significant health needs.
FAQs:
Can I receive Carer’s Allowance if I’m a full-time student?
No, full-time students or those studying for 21 hours per week or more are not eligible.
What happens if my earnings exceed £139 per week?
If your weekly earnings after deductions exceed £139, you will no longer qualify for Carer’s Allowance.
Can I claim Carer’s Allowance if I live outside the UK?
No, you must have lived in the UK for at least two out of the last three years.
Can two people claim Carer’s Allowance for the same person?
No, only one person can claim Carer’s Allowance for the same individual.
