Carer’s Allowance may impact state pension and other benefits – rul…
Bristol resident discusses carers allowance
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As the cost of living crisis continues, Britons are encouraged to claim all the benefits they may be entitled to as it may prove vital for households on low incomes. However people are warned that other payments could down or stay the same.
Carer’s Allowance gives claimants £69.70 every week if they care for someone at least 35 hours a week and they get certain benefits.
However, pensioners should be aware they cannot get the full amount of both Carer’s Allowance and state pension simultaneously.
This is due to the “overlapping benefits” rule.
Under this rule, people are not entitled to receive Carer’s Allowance if they claim other specific benefits.
If someone’s state pension is £69.70 a week or more, they will not get a Carer’s Allowance payment.
If their pension is less than £69.70 a week, they’ll get a Carer’s Allowance payment to make up the difference.
Carer’s Allowance is delivered by the Department for Work and Pensions (DWP), however it does not count towards the benefit cap.
On the Government website, it states: “When you claim Carer’s Allowance your other benefit payments may change, but your total benefit payments will usually either go up or stay the same.”
Additionally, someone gets Pension Credit and their state pension is more than £69.70 a week, they will not get a Carer’s Allowance payment but their Pension Credit payments will increase instead.
If they get Pension Credit, their payments will increase if they’re eligible for Carer’s Allowance.
If they delay claiming their state pension, this could increase the state pension payments they get when they decide to claim it.
People can choose to keep on working, whether paid or on a voluntary basis, while claiming the state pension.
Any money they earn will not affect their state pension, but it may affect their entitlement to other benefits such as Pension Credit, Housing Benefit and Council Tax Reduction.
People cannot build up extra state pension during any period the get Carer’s Allowance.
The earliest that people can get their state pension is when they reach their state pension age.
They’ll have to wait to claim their state pension if they retire before they reach that age.
People may receive less when they reach state pension age than if they would have continued working.
This is because they get a state pension by building up enough ‘qualifying years’.
A qualifying year is a tax year in which people have enough earnings on which they have paid National Insurance contributions.
It also includes a year in which they are treated as having paid or have been credited with paying National Insurance contributions.
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