Carer’s Allowance: £3500 annual support available – but other benefits could be affected | Personal Finance | Finance


Carer’s Allowance is intended to help those who care for another person for at least 35 hours a week, where the individual being cared for receives certain benefits. A carer does not have to be related to, nor live with, the person they are caring for. However, Carer’s Allowance can only be claimed by one unpaid carer.

While Carer’s Allowance does not count towards the benefit cap, there are still important issues to note.

Other benefit payments could change, but the total benefit payments a person receives usually stay the same, or increase.

However, those who are in receipt of Working Tax Credit or Child Tax Credit must inform HMRC of their new Carer’s Allowance claim.

For carers who are in receipt of Pension Credit, though, there is good news from the government.

As such, carers are encouraged to reach out to the individual’s local council to see whether this affects them.

Finally, carers should note their claim could potentially increase their state pension entitlement.

The payout provides a person with National Insurance credits, which can be built up to provide a stronger state pension.

It is however, worth noting that individuals may get less than the new full state pension if they were contracted out before April 6, 2016.

Alternatively, Britons may wish to use an independent benefits calculator to work out their entitlement and the effects of payments.

The government has signposted three such tools on its website: Turn2Us, Policy in Practice, and entitedto. 

These tools are free to use and are anonymous, helping people understand their benefits and how to claim.


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