Published On: Sun, Jan 17th, 2021

Carer’s Allowance: Does Carer’s Allowance affect Universal Credit? | Personal Finance | Finance

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Carer’s Allowance is a Government benefit, which provides financial support to people who look after another person for at least 35 hours per week. In recent years, some people receiving some benefits have moved onto the Universal Credit system.

Does Carer’s Allowance affect Universal Credit?

Carer’s Allowance payments may affect how much someone receives in Universal Credit.

Universal Credit claimants can get an additional amount if they are caring for a severely disabled person for at least 35 hours per week.

Under the Universal Credit scheme, this extra amount is known as the carer’s amount.

READ MORE: Carer’s Allowance rules have changed – what it means in UK lockdown

Understanding Universal Credit explains on its website: “You do not need to be in receipt of Carer’s Allowance.

“If you make a joint claim, both of you can get a carer’s amount as long as you are not caring for the same severely disabled person.

“If you or your partner get Carer’s Allowance, your Universal Credit payment will be reduced by £1 for every £1 you receive from Carer’s Allowance.”

Government guidance on Carer’s Allowance states it is counted as income for claimants who are claiming other means-tested benefits, such as Universal Credit.

Government guidance states: “Carer’s Allowance counts as income, so any means-tested benefits you get will be reduced if you get Carer’s Allowance.

“But an extra amount will be included in the calculation of your means-tested benefits, so you will not be worse off overall.”

Carer’s Allowance claims can also affect the benefits the person being cared for receives.

When someone claims Carer’s Allowance, the person they care for will stop getting the severe disability premium, in addition to an extra amount for severe disability if they claim Pension Credit.

The person being cared for may also stop getting reduced council tax if their carer claims Carer’s Allowance, but this depends on each local council.

Further information on how Carer’s Allowance can affect other benefits can be found on the Government website HERE.

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Carer’s Allowance is paid to people whose earnings are £128 or less a week after tax, National Insurance and expenses have been deducted.

The person being cared for must get any of the following benefits:

  • Personal Independence Payment – daily living component
  • Disability Living Allowance – the 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

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