If an existing CA claimant, starts being a paid carer under the direct payments scheme, and their earnings remain under the earnings limit, is there anything to stop them receiving CA?
I can't find anything in the regs that prevents a paid carer from claiming CA - they would normally be knocked off by the earnings rule, because of the multiplication of the minimum wage x 35 hours- but in this case if direct payments were only paying for,say eight hours worth of care, but in excess of 35 were being provided, is there anything that prevents the continuation of the CA claim?
Thanks

Nothing at all to prevent the scenario you suggest. We in Poole have recommended it to carers ourselves, now and then. I checked it out with the Disability Benefits Unit first time it came up - no objections were raised.

In theory, I can see a hard-nosed DM saying that if the carer is going to get paid, then they should be paid at least 35 hours x the minimum wage (ie more than £79 pw) and then making a decision that notional income rules should apply. I've never heard of this happening, by the way - the DM would also have to consider the disabled person's ability to pay. And if the LA is providing the disabled person with direct payments cash only for hours which, when paid for, would produce a wage of £79 or less, it follows that the carer could then provide further hours as a volunteer.

Another way to keep pay down to £79 or less, where the LA is providing cash for hours which would total more than £79 in terms of wages, is to split the caring between two or more people, with the main carer claiming CA accordingly.

Jim

I've just been asked the same question but with a slightly different angle on it. I do not think the person being cared for is getting direct payments. The carer has 2 jobs totalling 16 hours per week so claims Working Tax Credit. She earns less than £79 p/w in total. She wants to give up one of these jobs (10 hours) and the person she cares for wants to employ her and pay her for 10 hours care. She will still be eligible for WTC and Carer's Allowance, as far as I can see. However, I feel slightly uneasy about this (although I'm not sure why). Can anyone see any objection to this? Am I missing something?

Well, from October National Minimum Wage for people aged 22+ is £4.85 per hour. If the carer's other 6-hour job is paid at this rate and the 10-hour caring job likewise, that makes 16 x £4.85 = £77.60 - still OK for CA. Indeed, if the other job is anything up to £5.08 per hour, it's still within the £79 pw CA limit. 6 x £5.08 = £30.48 + 10 x £4.85 = £48.50, total £78.98.

If the other job is paid at more than £5.08 per hour, the caring job would have to be paid at less than NMW, accordingly. Still, I don't suppose the carer would complain, if it meant hanging on to CA. But if the LA are making Direct Payments for the disabled person to use as wages for the carer, they might object to payments below NMW.

Other than this consideration, everything's fine. WTC does not, of course, count as earnings for CA purposes.

Jim

only thing is to ensure that paid care worker is aware that because carers allowance is a taxable benefit, the worker although only earning max of £79 per week, may be eligible to pay tax as the CA will reduce their non taxable earnings threshold.