Hi, I wonder if someone could clarify how earnings are asssessed for Carers Allowance purposes, where earnings fluctuate:

Have read CPAG p.926:

"If your earnings fluctuate and have changed more than once, or your employment is such that you do not work every week, your weekly earnigns may be averaged as follows:
- if you have regular pattern of work, over one complete 'cycle' of work. This includes periods where you do no work if this forms part of your regular pattern of work (eg, if you regularly work 3 weeks on and 1 week off, your earnigns will be averaged over 4 weeks; or
-in any other case, over 5 weeks, or whatever other peiod will enable your weekly earnings to be asssesed more accuarately.

What if weekly earnings are assessed at, say £81 pw. Claimant then works a little bit less and wants it reassessing. Does he have to make a complete new claim? At what point does he does this? (ie can it be a week later so that a different 5 week period is assessed)Or can claimant simply ask for a reassessment?

Also, is the 5 week averaging automatic and do you have to request a different averaging over a longer period?

Thanks.

Hi - sorry, haven't kept up w/ discussions due to staff shortages, but as I work for Carers UK & you haven't had any replies to your query; I thought some input was overdue. Fluctuating income is more of a problem for salaried people, and you cannot rely on CAU to get it right. As per our CA leaflet for carers: 'If your earnings vary, your average earnings are calculated. If your earnings vary over a recognisable cycle (e.g. over a school year or a regular shift pattern) an average is taken over that cycle. Otherwise an average is taken over 5 weeks or over any other period that gives a more accurate assessment of your average earnings. In other words there is an element of discretion here & it's worth talking to CAU's Customer Services Unit (their direct tel number is:01772 8996555). I'm assuming that you've allowed for the usual deductions to get the figure down; however, the one that can be used if need be are - payments for the care of the person looked after, or for a child under 16. These payments can be taken off earnings up to the value of half of net earnings (i.e. after the other deductions have been made). The only other proviso is that such payments cannot be considered if made to a close relative of the carer or the person looked after. For these purposes, a close relative is a partner, parent,child or sibling. Just as accountant will advise their clients how to make use of the system, we should be communicating this even if it is a ploy to lower the net income below the ceiling. FOr tax and other purposes records and receipts of these actual transactions should be kept, but there must be times when a carer relies on a neighbour or friend to look after their child or keep an eye on the aged parent getting AA etc. A payment for this to bring the figure below the ceiling is an allowable expense. The other thing to bear in mind is that once the carer has received CA for 22 weeks, a break in care for up to 4 weeks is allowed - and this would apply to any subsequent 26 week period. This would help people who wanted to put in extra hours over Xmas. I advised a P/t worker who was anxious that she was being asked to work f/t for a fortnight as part of her training and she was relieved to know she could take advantage of this. The only downside is that the same 4/26 weeks would extend to include any respite care breaks during the same period. I've probably given you more than you need to know,or more likely, none of this is new. Hope it helps. The only other thing is if the amount cited in your case remains fixed at £81pw, then the good news is the increase in the earnings allowed goes up to £82 from April.