Welfare Rights Training 2009Welfare Rights Training 2009

Carers AllowanceCarers Allowance

Taxable: YesTaxable: Yes

Means Tested: No (Only earnings stops it) Means Tested: No (Only earnings stops it)

An allowance paid to someone over 16 An allowance paid to someone over 16 who spends at least 35 hours looking after who spends at least 35 hours looking after a qualifying disabled persona qualifying disabled person

CARERS ALLOWANCECARERS ALLOWANCEWho is it forWho is it for??

Somebody caring for a severely disabled person Somebody caring for a severely disabled person (not necessarily living with them).(not necessarily living with them).

““The Severely Disabled Person must be in The Severely Disabled Person must be in receipt of”receipt of”

Attendance Allowance (A.A)Attendance Allowance (A.A) Disability Living Allowance (DLA) Care @ Middle Disability Living Allowance (DLA) Care @ Middle

or Higher Rateor Higher Rate Constant Attendance Allowance over £57.50 Constant Attendance Allowance over £57.50

weekly (Part of Industrial Injuries or War weekly (Part of Industrial Injuries or War Disablement Pension)Disablement Pension)

Carer MustCarer Must

Spend at least Spend at least 3535 hours weekly in respect of one hours weekly in respect of one disabled person disabled person

Be aged over 16 Be aged over 16

Earning under £95 net weekly after allowable Earning under £95 net weekly after allowable deductionsdeductions

Not be in full time education (more than 21 hours at Not be in full time education (more than 21 hours at any level)any level)

CARERS ALLOWANCECARERS ALLOWANCE

Carer’s earningsCarer’s earnings

Net after deducting tax, NI and half contribution to Net after deducting tax, NI and half contribution to occupational pension schemeoccupational pension scheme

More generous treatment of care costs under CA rules than More generous treatment of care costs under CA rules than for other benefits:for other benefits:

The cost of care is allowed if provided by somebody who is The cost of care is allowed if provided by somebody who is not a close relative, this amount can be deducted even if not a close relative, this amount can be deducted even if that person is not a registered Child minder etcthat person is not a registered Child minder etc

Cost of care allowed for a Child under 16 Cost of care allowed for a Child under 16 oror for the for the disabled persondisabled person

Payments deducted up to maximum of half net earningsPayments deducted up to maximum of half net earnings

CARERS ALLOWANCECARERS ALLOWANCE RatesRates £ £

Claimant 53.10Claimant 53.10Adult Dependant 31.70Adult Dependant 31.70First ChildFirst Child 8.20 (See Note 1) 8.20 (See Note 1)Other Children 11.35 (See Note 1)Other Children 11.35 (See Note 1)

Partner’s Earnings Limit before adult addition lostPartner’s Earnings Limit before adult addition lost £31.70£31.70

If partner earns £195 or more you will lose one If partner earns £195 or more you will lose one Child addition (See note 1)Child addition (See note 1)

Lose another Child addition for each extra £26 over Lose another Child addition for each extra £26 over £195 (See note 1)£195 (See note 1)

NOTE 1 (Child additions)NOTE 1 (Child additions)

Existing claimants only pre April 2003Existing claimants only pre April 2003

These loses of Child addition only apply to existing These loses of Child addition only apply to existing Carers Allowance claims made pre April 2003 with Carers Allowance claims made pre April 2003 with transitional protected child additions includedtransitional protected child additions included

After April 2003 (Child additions were abolished)After April 2003 (Child additions were abolished)

Earnings / income under £15,575 yearly should allow Earnings / income under £15,575 yearly should allow Child Tax Credit to be paid in full for any children.Child Tax Credit to be paid in full for any children.

CARERS ALLOWANCECARERS ALLOWANCE

NOTES:NOTES:

Only one CA allowed per disabled personOnly one CA allowed per disabled person

Can get CA and DLA / AA as claimantCan get CA and DLA / AA as claimant

Always get the carer to put in a Carers Allowance claim within three Always get the carer to put in a Carers Allowance claim within three months of any DLA or AA award as backdating is normally limited to months of any DLA or AA award as backdating is normally limited to three months, except when first awarded DLA or AA or increasing three months, except when first awarded DLA or AA or increasing DLA or AA then full backdating is allowed as long as the Carers DLA or AA then full backdating is allowed as long as the Carers Allowance is put in within three months of the new awardAllowance is put in within three months of the new award

If Carers Allowance is If Carers Allowance is PAID,PAID, the disabled person will lose any Severe the disabled person will lose any Severe Disability Premium (SDP) paid or included in any other Means tested Disability Premium (SDP) paid or included in any other Means tested benefit calculations benefit calculations

Any backdated Carers Allowance award does not effect any SDP Any backdated Carers Allowance award does not effect any SDP previously included or paid in the disabled persons Income Support, previously included or paid in the disabled persons Income Support, IB(JSA), IB (ESA), Pension Credit, Housing, Council Tax Benefit or IB(JSA), IB (ESA), Pension Credit, Housing, Council Tax Benefit or any other means tested calculations.any other means tested calculations.

The Carer Premium (£29.50)The Carer Premium (£29.50)

The Carers Premium is £29.50 a week for each person The Carers Premium is £29.50 a week for each person who qualifies. It can be awarded in addition to any otherswho qualifies. It can be awarded in addition to any others

You will qualify for a Carer Premium if: You will qualify for a Carer Premium if:

You are actually paid any amount of Carers Allowance You are actually paid any amount of Carers Allowance OrOr

You have an underlying entitlement to Carers You have an underlying entitlement to Carers Allowance:Allowance:

E.g. you are entitled to CA but it cannot be paid because E.g. you are entitled to CA but it cannot be paid because of the overlapping benefit rules (See below).of the overlapping benefit rules (See below).

If you only have an underlying entitlement to CA, thereIf you only have an underlying entitlement to CA, thereare some extra rulesare some extra rules

You must have actually claimed Carers Allowance You must have actually claimed Carers Allowance AndAnd

You are entitled to CA but the overlapping benefit rules You are entitled to CA but the overlapping benefit rules mean that you cannot be paid CA because you receive mean that you cannot be paid CA because you receive another non-means tested income maintenance benefitanother non-means tested income maintenance benefit AndAnd

The person you are caring for must continue to receive The person you are caring for must continue to receive Attendance Allowance or the middle or higher rate of Attendance Allowance or the middle or higher rate of D.L.A. care component.D.L.A. care component.

Underlying CAUnderlying CA

Notes:Notes:

That if you have overlapping CA, you can That if you have overlapping CA, you can qualify for a Carers Premium and the qualify for a Carers Premium and the person you are caring for will still be person you are caring for will still be entitled to the Severe Disability Premium.entitled to the Severe Disability Premium.

When claiming Carers Allowance always When claiming Carers Allowance always backdate a claim for 3 months if allowedbackdate a claim for 3 months if allowed

Severe Disability Premium/sSevere Disability Premium/s

(Single £52.85 / Couple £105.70)(Single £52.85 / Couple £105.70) The Severe Disability Premium (SDP) is part of the means The Severe Disability Premium (SDP) is part of the means

tested benefit system and can be awarded on top of the tested benefit system and can be awarded on top of the Disability Premium, Enhanced Disability Premium or the Disability Premium, Enhanced Disability Premium or the Pensioner Premium in IS, HB, CTB, IBJSA, PC, IBESA.Pensioner Premium in IS, HB, CTB, IBJSA, PC, IBESA.

To qualify, you must be:To qualify, you must be:

If Single?If Single?

An Income Support or other means tested benefit (HB / CTB / An Income Support or other means tested benefit (HB / CTB / PC / IBJSA / IBESA etc) claimant; who gets D.L.A. Care PC / IBJSA / IBESA etc) claimant; who gets D.L.A. Care Component at the middle or higher rate, or Attendance Component at the middle or higher rate, or Attendance Allowance (or Constant Attendance Allowance over £57.40); Allowance (or Constant Attendance Allowance over £57.40); and you technically count as “living alone”;and you technically count as “living alone”;

If a Couple?If a Couple?

If you both get DLA middle or higher rate Care If you both get DLA middle or higher rate Care Component or Attendance Allowance, and no one gets Component or Attendance Allowance, and no one gets PAIDPAID Carers Allowance (CA) for looking after either you Carers Allowance (CA) for looking after either you or your partner, your SDP will be the couple Rate £105.70or your partner, your SDP will be the couple Rate £105.70

If you both get DLA middle or higher rate Care If you both get DLA middle or higher rate Care Component or Attendance Allowance, and one person Component or Attendance Allowance, and one person gets paidgets paid CA for looking after you CA for looking after you oror your partner, your your partner, your SDP will be single rate £52.85SDP will be single rate £52.85

If two people are getting CA for looking after you If two people are getting CA for looking after you andand your your partner, you will not get the SDP at all. partner, you will not get the SDP at all.

Severe Disability Premium/sSevere Disability Premium/s

(Single £52.85 / Couple £105.70)(Single £52.85 / Couple £105.70)

Notes: Notes:

That it is quite possible for you to get CA for That it is quite possible for you to get CA for looking after your partner (as well as your looking after your partner (as well as your own DLA Care Component or Attendance own DLA Care Component or Attendance Allowance). Allowance).

If you, or your partner, or both of you, get If you, or your partner, or both of you, get paid any CA for looking after the other, that paid any CA for looking after the other, that excludes you from the single or double excludes you from the single or double SDP. but you can still get the Carer SDP. but you can still get the Carer Premium(s) which are worth a lot less.Premium(s) which are worth a lot less.

Carers & Overlapping BenefitsCarers & Overlapping Benefits

Carers Allowance will not be paid if you have more Carers Allowance will not be paid if you have more from:from:

Incapacity benefitIncapacity benefitEmployment & Support Allowance Contributory Employment & Support Allowance Contributory Severe Disablement Allowance (Option)Severe Disablement Allowance (Option)State PensionState PensionMaternity AllowanceMaternity AllowanceContribution Based JSAContribution Based JSAWidows or Bereavement BenefitsWidows or Bereavement BenefitsUnemployability Supplement (IIB & WP)Unemployability Supplement (IIB & WP)

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Questions and Answers?Questions and Answers?