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Universal Credit and Carers Allowance
Hi
Is there any other advantages to a person claiming Carers Allowance for someone who is getting UC- given that is deducted £1 for £1 and their is no financial gain.
The only one I have found is that to be placed in the No Work Related activities group automatically you need to be in receipt of Carers Allowance, otherwise it is discretionary-even if getting Carers Element of UC?
Hope it wasn’t a work coach who told you that, it’s not correct!
Entitlement to a carer element most certainly does confer exemption from all conditionality, with or without Carers Allowance. See s19(2)(b) of the WRA 2012, and the definition of “regular and substantial caring responsibilities” in UC Regs 29 and 30
The discretion is for people who do not have a Carer Element, but nevertheless spend a lot of time providing care. The textbook example would be the second parent of a severely disabled child, because only one person can be entitled to a carer element for the same disabled person. See UC Reg 89(1)(b).
Reasons for claiming CA alongside UC? Class 1 NI credits; different payment cycle might help with budgeting (once a year a surprise “free” CA payment which will give the illusion of not being deducted from UC); remains in payment if you win the lottery; eliminates the need for any argument with DWP about whether indeed you do provide enough care to get the element.
And if you live in Scotland, two lump-sum payments a year currently £288.60 each. This is the Carer’s Allowance Supplement.
Jim
[ Edited: 9 Jan 2025 at 04:03 pm by Mr Jim ]Worth mentioning a potential disadvantage which is relevant in some cases: Carer’s Allowance is taxable.
Caring is tough and impacts on health - ESA - relaxation of the first contribution condition - ADM Chapter 1 ESA conditions of entitlement - U1085 - https://assets.publishing.service.gov.uk/media/666195892aec9626ea8805c9/adm-u1.pdf
There are also potential impacts on Council Tax Reduction if someone claims Carer’s Allowance at the same time as Universal Credit.
For my local council, having UC as your sole source of income attracts an 88% discount on your council tax. Having Carer’s Allowance at the same time can significantly reduce the discount, even though the income is no different.
There are also potential impacts on Council Tax Reduction if someone claims Carer’s Allowance at the same time as Universal Credit.
For my local council, having UC as your sole source of income attracts an 88% discount on your council tax. Having Carer’s Allowance at the same time can significantly reduce the discount, even though the income is no different.
Let me guess who drafted that ...