shared lives and carers allowance

HI

I have read some quite old threads on the situation of shared lives carers (adult placements) and eligibility for carers allowance.

I understand that such carers are generally self employed and will be able to use qualifying care relief scheme for tax purposes and to calculate profit. This will usually mean that they will have little or no profit (from this work anyway) and are able to claim WTC (or UC depending on where you live)

Im not sure about CA - from what I have read/discussed with CA, again, this would be treated as self employment but that they would want to use actual income in, less expenses in running the business (im guessing use of tel, any equipment, bedding etc but im not actually sure what would be allowable expenses)?

Has anyone used the argument made in previous threads that under schedule 1 para 7 of the computation of earnings regs “Any payment made by a health authority [F7a clinical commissioning group, the National Health Service Commissioning Board, a local authority or a voluntary organisation] to the claimant in respect of a person who is not normally a member of the claimant’s household but is temporarily in his care” are disregarded? and if so, what was the response?

any further comments on my assessment of the treatment of this income for CA would be most welcome. I would just add that there may be some young people under staying put placements (former LAC) who will also be affected in this way. foster carer may have been receiving CA but im guessing this would also be affected in the way outlined above but for these YP, payments would be made from section 23 usually, and care would almost certainly be temporary (till age 21) so would this made a difference?

thank you everyone

I am aware of both schemes but haven’t actually had the circumstance you describe come up in a specific case - I have spoken to foster carers who were considering a shared lives or staying put arrangement but no one has actually come back with a query or problem later.

Interestingly the IS/JSA part of the DMG suggests that the identically worded provisions there COULD apply to Shared Lives -

28383 The DM should fully disregard payments to a claimant or partner for a person who
1.  is not normally a member of the claimant’s household and
2.  is temporarily in the claimant’s care
when payments are made by a LA, HA, a voluntary organization, a clinical commissioning group, the NHS Commissioning Board, a Local Health Board or the person concerned under specified legislation
.
Note 1: This could include payments to a claimant under the Adult Placement or Shared Lives Scheme from a LA’s own resources.
Note 2: Payments made by a LA does not include payments of HB made in respect of the person concerned.

I must admit that I would have thought it unlikely to apply to Shared Lives, and maybe Staying Put is a stronger case, but it must all depend on the facts of each case.

I will take a look but agree that staying put probably is more likely to fit, but thank you for your advice.

I have got a similar query from someone who is due to become a shared lives carer but I am not certain how the income will be treated for Carers Allowance.  Did you get any further with your query over whether this income could be disregarded on the basis of being for someone temporarily in their care?

Thanks