Carers Allowance : definition of paid work?

Mornin’ folks. Just a quick query. I have a client who wishes to claim Carers Allowance for her Foster Child.
She does not live on any means tested benefits as she receives a £142 per week guardian/foster parent allowance for looking after him. Is this allowance classed as paid income from work? I dont think it is and I cant find any reference or exceptions in the CPAG guide and i dont want the DWP saying in 4 years time that she has been overpaid ten grand in carers Allowance.
Any thoughts would be welcome, as always.
Thanks

Your client is not an employed earner. The benefits and allowances are not from any self employed business. They cannot be classed as earnings. Chapter 15 of the DWP Decision Makers Guide should clarify this for you.

Hi

They should be disregarded.  You should find it on page 865 of CPAG under disregarded earnings.  Legal reference is paragraph 6 of schedule 1 Social Security (Computation of Earnings) Regulations 1996/2745 as amended.

Shaun

Thanks folks.I read that it was disregarded for HB/CTB but wasnt sure about the Carers thing.

Just an observation that there is an inherent contradiction within the above posts.

If the monies are not from employment / self-employment, why is it necessary to disregard the monies as if they are earnings (distinguished from UNearned income)?

From memory, isn’t there a paradox for foster carers whereby they can decide themselves whether to be classed as employed or not? I am sure I remember similar discussions when I was at CPAG a few years back, and I don’t know whether the situation was ever properly resolved or not.

Just did some searching, and that’s still the situation according to this UC briefing note

More info folks regarding this particular case. I asked the client this morning if she was on any benefits at all and she said no, as i was checking for overlaps. She told me she gets £142 for looking after the child. I have read in CPAG that such money is disregarded for all benefits, and is for the child, not the carer. As all money is disregarded for benefits i called the client, and apparently she is in receipt of Income Support after all, despite telling me earlier she was not in receipt of any benefits. (Clients eh?)
In this case the money could not have been classed as earnings or taxable income, otherwise Income Support wouldnt be paid.
Sorry folks : methinks i need to dig a bit deeper regarding my clients circumstances!

They would be treated as earnings for Carers Allowance ansd disregarded.  If the foster carer was able to claim Income Support as a single person foster care they would be disregarded as income other than earnings.  Alternatively If the same foster carer chose to to claim Working Tax Credit as a self employed earner instead of as a single person foster carer they are likely to be treated as nil income as in the main most foster carer payments are below the foster care tax thesholds for income tax.

Shaun

My understanding of the position of foster carers is as follows.  They cannot claim CTC if the LA pays for either the accommodation or maintenance of the child.  They are treated by HMRC as being in remunerative work and so can claim WTC.  There is a disregard in the foster allowance up to a certain amount (quite high).

For Carers Allowance the rule on earnings is if you are classed as gainfully employed under a contract of employment or service.  In my view this does not cover foster carers for two reasons.  First there does not exist a contract of employment or service between the LA and the foster carer.  The arrangement is a placement under the Children Act.  And, secondly, foster allowances are not wages or profits but statutory payments made under the Children Act.

For IS, IB/JSA and IR/ESA foster carers are not classed as being in remunerative work and for those benefits and HB/CTB the foster payments are fully disregarded but CA and WTC are taken into account in full.