Many people in the UK who dedicate their time to caring for others may be missing out on essential financial support. Carer’s Allowance, offered by the Department for Work and Pensions (DWP), provides a weekly payment to individuals who care for someone for at least 35 hours a week.
This allowance is an important lifeline for many carers, offering them both financial assistance and additional benefits. Yet, despite its availability, many people are unaware that they qualify for this support.
Carer’s Allowance is a means-tested benefit aimed at supporting those who look after individuals with specific health conditions or disabilities.
Eligibility and Claiming Carer’s Allowance
According to the DWP, Carer’s Allowance is available to individuals who provide care for someone receiving specific benefits such as :
- Personal Independence Payment – daily living component
- Disability Living Allowance – the middle or highest care rate
- Scottish Adult Disability Living Allowance – the middle or highest care rate
- Attendance Allowance
- Pension Age Disability Payment
- 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
- Child Disability Payment – the middle or highest care rate
- Adult Disability Payment – daily living component at the standard or enhanced rate
Importantly, the person being cared for does not need to be related to the carer or live in the same household. The only stipulation is that the carer must spend at least 35 hours a week on care-related tasks, which can range from helping with household chores to personal care.
The benefit amount is set at £83.30 per week, which can be paid on a weekly or four-weekly basis. While the payment may seem modest, it can make a significant difference to those who dedicate much of their time to looking after someone else. Carers may also be entitled to National Insurance credits, which help them build entitlement to the State Pension.
However, it’s important to note that only one person can claim Carer’s Allowance for each individual being cared for, even if multiple carers are involved. The payment can also affect other benefits, such as Universal Credit and Pension Credit, meaning it may alter the overall financial support the carer and the person they look after are entitled to.
Additional Support for Carers
In addition to the Carer’s Allowance, carers may also be eligible for extra support, including assistance from their local council, such as council tax reductions and access to grants or bursaries for training courses.
These additional perks are designed to reduce the financial strain on carers, providing them with opportunities to gain further skills or qualifications that could enhance their personal and professional lives.
Carers also benefit from a variety of tax reliefs, including potential reductions in their tax liabilities, especially if their income is below the Personal Allowance threshold. According to the DWP, this support helps ease the financial pressures faced by unpaid carers, who often work in a challenging and often isolated environment.
