Many people do not realise they are a carer. If you are looking after a partner, relative or friend who would find it difficult to cope without your support then you may be entitled to Carer’s Allowance.
This guide has been designed to help identify whether you meet the government’s criteria for being a carer, whether you may be eligible to Carer’s Allowance and provides expert tips for a successful application.
What is Carer’s Allowance?
Carer’s Allowance is a taxable non-means tested benefit which can give you monetary support if you are regularly looking after a family member or friend. You do not have to live with the person you care for to claim Carer’s Allowance.
What is the criteria for receiving Carer’s Allowance?
The person you care for must usually be receiving one of the following benefits:
- Personal Independence Payment - daily living component
- Disability Living Allowance - the middle or highest care rate
- Attendance Allowance- either rate
You must:
- Be aged 16 or over
- Spend at least 35 hours a week looking after the person you care for
- Earn £151 or less per week after tax, National Insurance and expenses
- Have lived in the UK for at least two of the last three years
- Not be in full-time education
- Not be subject to immigration control
The care you are providing could be in the form of practical tasks such as shopping or preparing meals, physical support such as helping them to mobilise, supervision or assisting them to take their medication.
Current Carer’s Allowance rates
You could get £86.45 per week. You can choose to receive this amount weekly in advance or every 4 weeks.
You will not receive extra if you care for more than one person and if you share caring duties with another only one of you is able to claim Carer’s Allowance.
If you receive Carer’s Allowance you’ll automatically get class 1 National Insurance credits which can help towards your state pension.
What if I claim a State Pension?
You cannot receive the full amount of both Carer’s Allowance and your State Pension at the same time.
However, receiving a pension does not automatically mean that you do not qualify for Carer's allowance. It may however be possible to still claim an underlying entitlement to Carer's Allowance without actually receiving a payment ( providing you satisfy the eligibility criteria).
This entitlement can passport you onto other benefit entitlements such as additional pension credit payments ( if you are eligible for this benefit) so do not be discouraged from applying even if your pension income is higher than £81.90 per week.
The interaction of different state benefits can get complicated. Get expert Care Advice if you are unsure.
How to claim Carer’s Allowance
- You can apply online
- Or you can apply by post by printing the relevant form. The address is ‘Carers Allowance Unit, Mail Handling Site A, Wolverhampton, WV98 2AB ‘ This address is also the one to return the form to.
- If you receive State Pension choose the ‘If You Get A State Pension: Carers Allowance Claim Form’
- If you do not receive a State Pension choose the ‘Carers Allowance Claim Form’
- You can write to ‘Freepost DWP Carers Allowance Unit’ to request the claim form, you do not need a post code or a stamp on the envelope.
- You can also call the Carer’s Allowance Unit on 0800 731 0297
You will need the following information to hand when you apply:
- National Insurance number
- Your bank or building society details
- If you are currently working, your employment details and latest payslip
- If you’ve recently finished work, your P45
- Details of any expenses
You will also need the details of the person you care for:
- Their address
- Their date of birth
- If they're over 16, their National Insurance number
You must inform the person you care for that you are going to claim Carer’s Allowance. If they have a legal representative, such as a Power Of Attorney, you must let them know.
Filling out the Carer’s Allowance form
There are guidance notes on how to complete the form and, if you are struggling, you can call the Carer’s Allowance Unit to ask for advice/clarification.
You may wish to keep a copy of your form should you need to refer to it at a later date. If you are applying online there is an option to choose to receive email confirmation that the DWP has received your application.
What happens next?
Usually, it can take between eight to 12 weeks for you to receive your Carer’s Allowance decision. If you have not heard anything regarding your claim after 12 weeks you may want to call the Carer’s Allowance Unit to check its status.
Can Carer’s Allowance be backdated?
Yes, Carer's Allowance can be backdated for up to three months from point of claim. You can request backdated payments as long as you met the eligibility criteria during that 3 month period.
Can you fast-track the process?
The Governments special rules relating to fast tracking benefit claims for those who have 12 months or less to live do not apply for pension credit.
Can you claim Carer’s Allowance if you live in a care home?
If the person you are looking after goes into a care home, you would only be able to continue to claim Carer’s Allowance if they continued to receive a qualifying disability benefit and you were still caring for them for at least 35 hours a week.
Your Carer’s Allowance will stop if you are no longer caring for them for at least 35 hours a week or their qualifying disability benefit stops.
Challenging a decision about Carer’s Allowance
If you do not agree with a decision made by the DWP regarding your Carer’s Allowance, there is an option to ask for it to be reviewed again – it’s a process called ‘mandatory reconsideration’.
The criteria is that the request for a ‘mandatory reconsideration’ has to be made within one month of receiving the decision.
You can ask for mandatory reconsideration if any of the following apply:
- you think the office dealing with your claim has missed some important evidence or made an error
- you disagree with the reasons for the decision
- you would like to have the decision looked at again
However, it is worth noting that a review does not necessarily guarantee a result of a better outcome: a person could be awarded a lower rate, or a decision of no entitlement at all. Speak to us if you have any questions on this.
To challenge a decision, get in touch with the Department For Work & Pensions to complete the CRMR1 form and then post this to the contact details on your decision letter.
You will get a ‘mandatory reconsideration notice’ telling you whether or not they’ve changed the decision, and explaining the reasons for that decision, including the evidence it was based on.
Reporting a change in circumstances
It is important to inform the Carer’s Allowance Unit of changes such as:
- you change, start or leave your job
- you start earning more than £151 a week
- the person you care for stops receiving their qualifying disability benefit
- you stop being a carer
- you stop providing at least 35 hours of care a week
- you take a holiday or go into hospital - even if you arrange care while you’re away
- the person you care for passes away, goes into hospital, into a care home or takes a holiday (If you are no longer providing care for at least 35 hours a week as the person you care for is in hospital, you can continue to get Carer's Allowance for up to 12 weeks or until their disability benefit stops. However, the person you care for must have spent at least eight of those 12 weeks in hospital.
- changes to your immigration status
- someone else who cares for the same person is claiming Carer’s Allowance instead of you
- starting or ending full-time education
You can report a change online or call the Carers Allowance Unit.
Carer’s Allowance and other benefits
Claiming Carer’s Allowance can passport you to additional premiums such as extra Pension Credit additions, but it can affect the benefits of the person being cared for. For example, if you are awarded the carers addition for Pension Credit, this could mean that the person you care for has their severe disability premium stopped or reduced.
If you are awarded an underlying entitlement to Carer’s Allowance such as Carer’s Credit this will not affect the benefits of the person you care for. Carer’s Credit is not a payment but it will give you Class 3 national insurance credits which can contribute towards your state pension. Those claiming Carer’s Allowance tend to work less so Carer’s Credit can help to contribute towards your National Insurance record.
Carer’s Allowance may also affect the council tax reduction the person you care for is receiving so do check with their Local Authority.
Carer’s Allowance will not stop or reduce the person you care for’s entitlement to Attendance Allowance, Pension Age Disability Payment, Adult Disability Payment, Disability Living Allowance or Personal Independence Payment.
The interaction between different benefits can get complex, please let us know if unsure and we can direct you to the relevant Care Expert.
Harold Stephens
Harold Stephens is a local, later life financial and legal planning specialist with a special interest in long-term care provision and tax efficient funding options. If you, or your loved one, are at the point of care need and are currently making important care funding decision then get in touch now for an initial chat with one of our specialist advisers by calling 0117 3636 212 or emailing office@haroldstephens.co.uk.
We will also be putting on some in person events throughout October and November in the local area covering the topic of care funding decisions and related later life financial and legal planning. Event details are updated regularly here: https://www.haroldstephens.co.uk/events/
