Carer’s Allowance: How Claiming May Affect Your State Pension and Other DWP Benefits | Personal finance | Finance


The Department for Work and Pensions (DWP) is urging Britons to check their eligibility for state aid as the cost of living crisis continues. Care allowance is paid to people who look after someone for at least 35 hours a week. If people are eligible, it could add an extra £3,624 a year to their household budget.

However, by receiving the support, people may face financial ripple effects on other benefits they are claiming.

In its latest guidelines, the DWP said filing an application shouldn’t mean people will end up with less money.

The government department has confirmed that the total benefit a person receives “will either increase or stay the same”, but is not expected to decrease.

If people apply for income-related Employment and Support Allowance (ESA) and Universal Credit as well as Carer’s Allowance, their payments will be reduced by the amount of Carer’s Allowance they receive.

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Under ‘overlapping benefits’ rules, people are not entitled to receive care allowance if they are claiming other specific benefits.

These include Contributory Employment and Support Allowance, Incapacity Allowance and Maternity Allowance.

People also cannot claim whether they receive bereavement or widowhood benefits, or contribution-based jobseeker’s allowance.

If the carer is claiming Severe Disability Premium (SDP), this payment of £69.40 per week may be discontinued when Carer’s Allowance has been claimed.


A person will only receive a severe disability grant if they live alone, receive means-tested income, receive the care component of Disability Living Allowance (DLA) or receive the daily living component of PIP.

It is also important to note that applying for care allowance may mean that the person being cared for stops receiving assistance with their municipal tax bills.

It could also prevent them from receiving an additional amount for severe disability paid with their pension credit.

This is because the government classifies care allowance as income for purposes of calculating means-tested benefits.

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Pensioners should also be aware that they cannot receive the full amount of care allowance and state pension at the same time.

This is due to overlapping benefit rules.

However, if a person’s state pension is less than £69.70 a week, they can receive the difference as a carer’s allowance.

If the carer is also claiming in-work tax credit or child tax credit, they should contact HM Revenue and Customs (HMRC) to advise them of the claim for the allowance.

In order to be eligible for carer’s allowance, the person being cared for must also be eligible for one of the ‘eligible benefits’.

These include Attendance Allowance, Constant Attendance Allowance, Disability Living Allowance, Personal Independence Payment (PIP) or Personal Independence Payment. armed forces.

Britons must also be 16 or over, not in full-time education and earning no more than £132 a week through employment or self-employment.

This is after deductions for income tax, national insurance and pensions.

Britons can apply for childcare allowance on the website or call 0800 731 0297 to get a form.


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