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Carer’s Allowance offers £83.30 a week for people providing at least 35 hours of unpaid care per week for someone receiving certain benefits. There are no age restrictions on claiming or receiving this DWP benefit, but those hoping to claim state pension alongside it will face a potentially unexpected issue.
It’s not possible to claim the full amount of state pension and Carer’s Allowance simultaneously. You might be able to retain a portion of your Carer’s Allowance payments depending on your state pension amount. Your state pension amount is determined by your National Insurance record; you’ll need 25 qualifying years of National Insurance contributions or credits to claim the full £230.25 a week from the new state pension. If you have fewer qualifying years, your payments will be proportionately reduced.
The only instance where you can receive both state pension and Carer’s Allowance concurrently is if your state pension payments are less than the Carer’s Allowance rate of £83.30. The caring benefit will then supplement your payment to this amount, according to Carers UK.
For instance, if you receive £70 per week from state pension, you can then get an additional £13.30 from Carer’s Allowance, totalling £83.30 per week. However, if you receive £84 a week from state pension, you won’t be eligible for any further Carer’s Allowance payments.
Those who qualify for Carer’s Allowance are encouraged to claim the benefit even if they won’t receive any payments because of the state pension rule, as it could unlock access to additional benefits, reductions and support through what’s called an underlying entitlement.
Carers UK explained: “It is still worth applying as you may be able to get what’s called an ‘underlying entitlement’ to Carer’s Allowance. This is where it is agreed that you meet the criteria for Carer’s Allowance, and you will be sent a letter of ‘underlying entitlement’.
“This tells the benefit agencies that you are still a carer, and because of this it may mean certain benefits you’re already receiving increase or you may be eligible to receive certain benefits for the first time.”
Those receiving other income-tested benefits such as Pension Credit will typically become entitled to any relevant Carer Premium or Carer Addition through this underlying entitlement.
Securing Pension Credit can also unlock eligibility for numerous other benefits and support based on individual circumstances, with full details available on the Gov.uk website.
Pension Credit entitlements:
- Free prescriptions
- Free dental treatment
- Warm Home Discount
- Cold Weather Payment
- Free TV licence if you are over 75
The underlying entitlement letter can also serve as proof of your caring responsibilities for purposes such as securing discounts or complimentary entry to recreational facilities. You must still satisfy all standard eligibility criteria for Carer’s Allowance to obtain underlying entitlement.
