Carers

Carers UK set out how Carer’s Allowance is affected by UC:

1. Carers who currently do not qualify for means-tested benefits and just get Carer’s Allowance of £62.10 a week.

Carers in this group are not directly affected by the introduction of UC. This group will remain outside the new system and the government has not announced any plans to reform the Carer’s Allowance they receive.

The carer will continue to receive Carer’s Allowance while they satisfy all the other rules for the benefit providing that the person they are looking after continues to receive benefits including:

• the middle or higher rate of the care component of Disability Living Allowance; or

• Attendance Allowance; or

• the daily living component of Personal Independence Payment.

2. Working-age carers who receive means-tested benefits like Income Support, Jobseeker’s Allowance, income-related Employment and Support Allowance or Housing Benefit, with or without a Carer Premium (an extra amount for carers of £34.60 a week).

Carers who are in this group will have their means-tested benefits moved on to UC.

Carers who are currently on Income Support or Jobseeker’s Allowance will have those benefits replaced by the standard allowance of UC and may get an extra amount for caring, called a carer element — similar to the carer premium. They may also get help with the costs of their mortgage interest payments and additional amounts for any children they have.

If they qualify for Housing Benefit (to help with the cost of rent) they may receive other additional amounts to help with these costs. However, the Benefit Cap on the total amount of benefits may affect how much support carers get towards their housing costs.

If carers’ circumstances remain the same they should not be worse off when they move on to UC, but this could only offer very short-term protection.

3. Carers over State Pension age, who qualify for Carer’s Allowance but cannot get it at the same time as their State Pension because of the rules of the benefits system.

These carers may get a Carer Addition (an extra amount for carers of £34.60 a week in Pension Credit (see page 52). According to Carers UK, most carers will not be directly affected by the introduction of Universal Credit and will continue to receive the same benefits and pension as they did before.

However, for new claimants, there are changes to the age at which couples become entitled to Pension Credit. Before the introduction of UC, a couple could claim Pension Credit when one of them reached the State Retirement Age (SRA). With the introduction of UC a couple will not be able to claim Pension Credit until both of them have reached the SRA.

This will have an impact on the amount of income couples receive from benefits — with older people having to wait longer before they get entitlement to the more generous benefit rates of Pension Credit.

The government has also announced that it is simplifying the process for claiming the Carer Addition in Pension Credit. Carers in receipt of a state retirement pension will be able to claim Pension Credit — and receive the additional carer’s premium in Pension Credit — without making a claim for Carer’s Allowance.