LRD guides and handbook March 2015

State benefits and tax credits 2015

Chapter 3

Carer’s Allowance

[ch 3: pages 52-53]

Carer’s Allowance (CA) is a taxable benefit available to informal carers aged 16 and over. You may qualify if you spend at least 35 hours a week looking after someone who is receiving one of the following benefits:

• Attendance Allowance;

• Disability Living Allowance – the middle or highest care rate;

• 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 (AFIP); or

• Personal Independence Payment daily living component.

To qualify, you must be:

• aged 16 or over;

• if working, earning no more than £100.00 a week; and

• not in full-time education of 21 hours or more a week.

In addition, you must have been in England, Scotland or Wales for at least two of the last three years and normally live in England, Scotland or Wales, or you live abroad as a member of the armed forces.

Your claim for CA can have an impact on any income-related benefits such as Income Support (IS) that are paid to the person you are caring for.

If you are receiving IS, income-based Jobseeker’s Allowance, Pension Credit, Housing Benefit or Universal Credit you can also apply for CA, and you may be entitled to a Carer Premium of £34.60 a week.

You can’t normally get two income-replacement benefits (e.g. Carer’s Allowance and the State Pension) paid together.

This is called the overlapping benefit rule. If you are a carer and you meet the eligibility criteria for Carer’s Allowance but you cannot be paid Carer’s Allowance because you’re already getting another earnings-replacement benefit, you may still have an underlying entitlement to Carer’s Allowance.

The underlying entitlement to Carer’s Allowance means that the carer premium (or carer addition for Pension Credit) can be included in the calculation of any means-tested benefits you’re entitled to.