Claiming Carer's Allowance on UC
On Universal Credit, to be recognised as a carer and paid the extra element, have all work related requirements removed and be placed in the no work group then you need to be in receipt of carers element. That is the most important thing.
Image of carers element from a Universal Credit payment breakdown
Eligibility for carers element is quite simple and there is no earnings threshold rule (like carers allowance has). It cannot be paid if you are in receipt of LCWRA.
It is awarded where the claimant or their partner has ‘regular and substantial caring responsibilities’ for a ‘severely disabled person’.
If both you and your partner have a ‘regular and substantial’ caring responsibilities for a ‘severely disabled person’ then two lots of the ‘carer element’ may be included in the award provided you are not caring for the same person.
A person is treated as though they have ‘regular and substantial’ caring responsibilities for a ‘severely disabled person’ if they receive Carer’s Allowance (or an underlying entitlement to Carer’s Allowance) or would be entitled to Carer’s Allowance but for the fact that their earnings are too great or they would be entitled to Carer’s Allowance if they were to make a claim for it because they care for someone (who receives e.g. Attendance Allowance, DLA care component at the middle or higher rate or PIP daily living component) at least 35 hours per week.
It is awarded where the claimant or their partner has ‘regular and substantial caring responsibilities’ for a ‘severely disabled person’.
If both you and your partner have a ‘regular and substantial’ caring responsibilities for a ‘severely disabled person’ then two lots of the ‘carer element’ may be included in the award provided you are not caring for the same person.
A person is treated as though they have ‘regular and substantial’ caring responsibilities for a ‘severely disabled person’ if they receive Carer’s Allowance (or an underlying entitlement to Carer’s Allowance) or would be entitled to Carer’s Allowance but for the fact that their earnings are too great or they would be entitled to Carer’s Allowance if they were to make a claim for it because they care for someone (who receives e.g. Attendance Allowance, DLA care component at the middle or higher rate or PIP daily living component) at least 35 hours per week.
The big question always is 'Should I claim Carer's Allowance as well?'
Well there is no requirement to claim Carer's Allowance which can make things very simple for the majority of people.
Well there is no requirement to claim Carer's Allowance which can make things very simple for the majority of people.
Reasons to Claim Carer's Allowance
Carer's Allowance entitles you to class 1 national insurance credits, whereas Universal Credit only entitles you to class 3 national insurance credits.
Class 1 National Insurance credits count towards the State Pension, bereavement benefits and some other contributory benefits. Class 3 National Insurance credits count towards the State Pension and bereavement benefits only
You will receive a £10 Christmas bonus.
You can opt to have your Carer's Allowance paid weekly - 2019/2020 rate is £66.15 per week.
If you are living in someone else's home as a non-dependant, if you are in receipt of Carer's Allowance, then there will no non-dependant deduction made to their housing element (if they claim UC).
If you have a partner that works, it may entitle you to free childcare for 2 year old or 3 to 4 year old.
Class 1 National Insurance credits count towards the State Pension, bereavement benefits and some other contributory benefits. Class 3 National Insurance credits count towards the State Pension and bereavement benefits only
You will receive a £10 Christmas bonus.
You can opt to have your Carer's Allowance paid weekly - 2019/2020 rate is £66.15 per week.
If you are living in someone else's home as a non-dependant, if you are in receipt of Carer's Allowance, then there will no non-dependant deduction made to their housing element (if they claim UC).
If you have a partner that works, it may entitle you to free childcare for 2 year old or 3 to 4 year old.
Reasons Not to Claim Carer's Allowance
If someone is claiming carer's element and working then they may want to consider whether they do want to claim Carer's Allowance as well. One of the main reasons, they may not want to claim Carer's Allowance is because Carer's Allowance has an earnings threshold of £123 per week. If you are an irregular earning or have the opportunity to pick up extra hours at work whenever possible, then it can be good not to have the limitations that Carer's Allowance places on you.
You may prefer to have the bulk of your money paid in one payment per month (Universal Credit).
You may prefer to have the bulk of your money paid in one payment per month (Universal Credit).