The information in this leaflet is for guidance only and is not an authoritative statement of the law.

The information is correct as of April 2003.

Carer’s allowance (CA) is the main state benefit for carers. Before April 2003 it was called invalid care allowance.

The carer premium is not a benefit, but is an extra amount for carers used in the calculation of some means-tested benefits.

This leaflet covers the main conditions you must satisfy for both CA and the carer premium.

Warning: Sometimes, claiming CA can reduce the amount of benefit paid to the person that you look after. If you are unsure, see the sections CA & other benefits and CA & the severe disability premium below, or seek further advice.

Carer’s Allowance (Ca)

How much is CA?

CA is paid at a basic rate of £43.15 a week.

You may get an increase of £25.80 a week for your partner. You will not get the addition if your partner gets one of a list of other benefits (see the section: Do not receive one of a list of other benefits, below) or gets more than £25.80 from earnings (after allowable deductions) and an occupational or personal pensions.

If you first claimed CA before 6 April 2003, you can get an addition for a dependent child. The addition is £9.55 for your oldest dependant child and £11.35 each for any other child. You cannot get the addition if you have a partner who earns above specified limits. To get the addition for the first child, your partner must earn £160 a week or less (after allowable deductions). For each extra £20 a week that your partner earns, an addition for a younger child is lost.

If you claim CA on or after 6 April 2003, you cannot get an addition for a dependent child.

For each week that you receive CA you get a national insurance credit. This can help protect the amount you will get from a retirement pension, the state second pension, incapacity benefit and jobseeker’s allowance. It also protects bereavement benefits for your spouse.

CA is taxable.

Who can get CA?

You can get CA if you:

• look after someone who gets a specified disability benefit;
• look after that person for at least 35 hours a week;
• are aged 16 or over;
• are not in full-time education;
• earn £77 a week or less;
• do not receive more from one of a list of other benefits;
• satisfy UK presence and residence conditions.

Each of these rules is explained in more detail below.

If the person you look after dies, you can continue to get CA for up to 8 weeks. You must continue to satisfy all of the above rules, except those relating to caring or receipt of specified benefits by the person you look after.

The specified disability benefits

The person that you look after must receive:

• attendance allowance; or
• disability living allowance, paid at the middle or highest rate for personal care; or
• at least £46.80 a week in constant attendance allowance paid with either a war pension or industrial disablement benefit.

Looking after someone for 35 hours a week

You must look after one person for 35 hours a week – you cannot add together the time that you spend caring for 2 or more people.

You can get only one payment of CA, no matter how many people you look after. Similarly, only one carer can claim for each disabled person – if there is more than one carer, the carers should agree who will claim CA.

You must look after someone for 35 hours every week of your claim (but see the section on breaks in caring below). If the time you spend caring varies, you cannot take an average. A CA week runs from the start of Sunday to the end of the following Saturday.

Caring can include both physically helping and keeping an eye on the person you look after. Any help you give in the presence of the person that you look after should be qualifying help. It can also include cooking, shopping and housework. If you claim because you look after someone who visits you regularly, time spent preparing for the visit or cleaning up afterwards may be time spent caring.

Breaks from caring

Once you have received CA for 14 weeks, it will be paid for up to 12 weeks if you stop caring because you go into hospital.

If the person that you look after goes into hospital, you can continue to get CA for up to 12 weeks or until the disability benefit that they receive stops. The disability benefit will stop after:

• 4 weeks in an NHS hospital if the person you look after is 16 or over;
• 12 weeks in an NHS hospital if the person you look after is under 16.

Otherwise, once you have received CA for 22 weeks, you can have a break in caring of up to 4 weeks in any 26-week period.

CA cannot be paid if your total breaks (for hospital stays and any other reason) add up to more than 12 weeks in any 26-week period.

Aged 16 or over

You cannot be paid until your 16^th birthday. Claims can be made up to 3 months in advance, so you can send in a claim form when you are 15 years and 9 months.

Rules for people over 65.

Until 28 October 2002, you could not make a new claim for CA (then called invalid care allowance) if you were over 65. Now, people over 65 can make claim CA, but most will not receive it. However, making a claim may mean that you get more money from means-tested benefits, even though you are not paid CA - see the sections: Do not receive more from one of a list of other benefits and The carer premium below.

If you were both over 65 and receiving CA before 28 October 2002, you can continue to get CA even if you earn above the earnings limit or stop looking after a disabled person. Otherwise you must continue to satisfy all of the rules for CA to be paid.

There are special rules for women who reached 65 before 28 October 1994. Before this date, women aged 60 or over could not claim carer’s allowance (this rule was changed because it discriminated against women). If you satisfied the rules for CA before 28 October 1994, but were aged between 60 and 65, you may be able to make a late claim now. If you are unsure, seek further advice.

Not in full-time education

You cannot get CA if you are in full-time education. A course is full-time if you study for 21 hours a week or more.

Only time spent in supervised study counts. Supervised study may include coursework or homework done away from the college. Meal-breaks do not count as time spent on the course.

The hours of the course are counted over the term-time only. You cannot get CA during vacations from the course if it lasts for 21 hours a week or more during the term. CA is not paid during temporary absences from the course if you intend to return to it.

Earn £77 a week or less

If you are in paid work, you cannot get CA if you earn over £77 a week. The earnings limit increases every year in April.

When calculating your weekly earnings, the following amounts are taken off your gross earnings:

• income tax;
• national insurance;
• half of contributions you make towards an occupational or personal pension.

If you make payments for the care of the person that you look after, or for a child under 16, these payments can be taken off your earnings up to the value of half of your earnings after tax, national insurance and pension contributions have been deducted. Such payments will not be deducted if made to a close relative of you or the person you look after. A close relative is a partner, parent, son, daughter, brother or sister.

If your earnings vary, your average earnings are calculated. If your earnings vary over a “recognisable cycle” (e.g. over a school year, or a regular shift pattern), an average is taken over the whole of that cycle. Otherwise, an average is taken over 5 weeks or over any other period that gives a more accurate assessment of your average earnings.

Earnings from self-employment are assessed over the previous tax year. If you have recently become self-employed, or your earnings have changed recently, a shorter period may be used.

Do not receive more from one of a list of other benefits

You cannot get CA if you receive more from one of the following benefits:

state retirement pension;	incapacity benefit;
maternity allowance;	bereavement or widow’s benefits; severe disablement allowance.
contribution-based jobseeker’s allowance;

This is known as the “overlapping benefits” rule.

If you get less from one of the above benefits, that benefit is paid then “topped-up” to the weekly rate with CA. Only the basic rate of the benefit overlaps with CA. Any earnings-related or age-related addition is paid along with CA.

If your partner gets an addition for you with one of these benefits, it will be affected if you get CA. Any CA paid to you will be taken off the addition. If CA is paid at a rate higher than or equal to the addition, the addition will not be paid.

If all that prevents payment of CA is the overlapping benefit rule, you should be recognised as a carer for means-tested benefit purposes. A carer premium will be included in the calculation of these benefits – see the section on the carer premium in this factsheet.

If you can get the same amount from CA and severe disablement allowance, the CA is usually paid. However, you can ask for the severe disablement allowance to be paid instead. You may want to do this to prevent the person you look after from losing some of their benefit – see the section CA & severe disability premium in this factsheet.

Presence and residence in the UK

You cannot get CA unless you have been in the UK for 26 of the last 52 weeks. Some people can be treated as though they have been in the UK whilst they were abroad – for instance, members of the armed forces and some European Economic Area nationals.

Usually, you cannot get CA if you have immigration restrictions on your stay in the UK – for instance, if you are not allowed to work or not allowed to claim from “public funds”. Some people can claim CA even though they have restrictions on their stay. If you are unsure whether your immigration status could prevent you from getting CA, seek further advice.

You can get CA whilst you are abroad:

• for up to 26 weeks if you go abroad with the person you look after, they continue to receive their disability benefit and the main purpose of your trip is to look after them;
• for up to 4 weeks in any other circumstances.

Claiming CA

Claim CA on form DS700. Ask for the form at your local social security office or Jobcentre, or ring the Department of Work and Pensions’ helpline for carers and disabled people on 0800 882200 (0800 220674 in Northern Ireland). The form can downloaded on the internet at www.dwp.gov.uk – this version cannot be used in Northern Ireland.

Claims can be backdated for up to 3 months if you have satisfied all of the entitlement conditions during that time.

CA cannot be paid until the person you look after is awarded a disability benefit. Sometimes a decision on your CA claim is made before the decision on the disability benefit and your CA claim is refused. If this happens, re-claim CA within 3 months of the decision awarding the disability benefit. CA will be backdated to the date of your first claim, or the date from which the disability benefit is awarded, whichever is later.

Jobcentre plus

A new system for claiming CA is being introduced. Most carers will be required to attend the Jobcentre plus for a “work-focussed interview”. The system is being introduced gradually – in some areas of the UK the interview is already necessary, other areas will adopt them over the next few years.

Some people will not have to attend the interview. These include anyone:

• over 60;
• who has recently had an interview for another benefit;
• working over 16 hours a week who does not claim income support.

The work-focused interview is with a personal adviser from the Jobcentre plus who will discuss your employment prospects. The adviser can assist you to find a job or suggest training that may help. You do not have to accept any job offered or follow any advice. However, you must co-operate with the adviser and supply details of your employment and educational history. If you fail to attend or co-operate with the interview, your claim may be refused.

The Carer Premium

What is the carer premium

The carer premium is not a benefit. It is an extra allowance used in the calculation of some means-tested benefits. It is used in the calculation of:

• income support;
• the minimum income guarantee (income support for people over 60);
• the pension credit that will replace the minimum income guarantee from October 2003.
• income-based jobseeker’s allowance;
• housing benefit; and
• council tax benefit (rate rebate in Northern Ireland).

For all of these benefits, the amount that you get will vary with the level of your income and savings.

The benefits are calculated by comparing your weekly income with a set of allowances. If your income is less than your allowances, you receive the difference as income support, income-based jobseeker’s allowance or minimum income guarantee. For housing benefit and council tax benefit if your income is below your allowances you get your maximum entitlement; if your income is greater, benefit is withdrawn gradually.

You get the premium if you or your partner (if you have one):

• gets CA; or
• would get CA, but receives an overlapping benefit instead.

The premium is worth £25.10 a week. A single carer gets one premium; couples get a premium for each member of the couple who fits the rule.

The premium can continue to be included in your allowances for up to 8 weeks if you stop caring for any reason.

The effect of capital

You cannot get income support and income-based jobseeker’s allowance if you have savings over £8,000; the amount you get is reduced if you have savings over £3,000.

You cannot get the minimum income guarantee if your savings are over £12,000; the amount you get is reduced if you have savings over £6,000.

You cannot get housing benefit and council tax benefit if your savings are over £16,000. The amount you get is reduced if you have savings over £3,000; or over £6000 if you are 60 or over.

The pension credit will have no upper capital limit. Deductions may be made for capital over £6,000, but at a lower rate than for the minimum income guarantee.

How to claim means-tested benefits

Claim income support and jobseeker’s allowance from your local social security office.

Claim housing benefit and council tax benefit from your local council.

Claim the minimum income guarantee by calling the Pensions Service helpline on 0800 028 1111.

Ca & The Severe Disability Premium

The severe disability premium is an allowance that may be included in the calculation of the means-tested benefit(s) of the person you look after. The person you look after cannot get a severe disability premium as part of the calculation of their benefit if you are paid CA. The premium is worth up £42.95 for a single person, or for each member of a couple that qualifies.

The severe disability premium is awarded to people who receive attendance allowance or the middle or higher rate of disability living allowance for personal care. They must live alone, or only live with people who:

• receive the middle or higher rate of disability living allowance for personal care; or
• receive attendance allowance; or
• are under 18; or
• are employed by a charity or voluntary organisation to look care for them and a charge is made for that care; or
• are their landlord and are not their close relative; or
• are their lodger or boarder and are not their close relative;
• are joint-owner or joint-tenant and are not their close relative.

The family of landlords, lodgers, boarders co-owners and co-tenants do not affect payment of the premium.

Joint-owners and joint-tenants who are close relatives do not effect the premium if the joint-agreement began:

• before 11 April 1988, or
• on or before the date that the disabled person (or their partner) first moved into the property.

A close relative for this purpose is a partner, or a parent, parent-in-law, son, son-in-law, daughter, daughter-in-law, step-parent, step-son, step-daughter, brother, sister or partner of any of these.

The severe disability premium stops only if CA is paid. Having an underlying entitlement to CA does not prevent the award of the premium. So, a carer who is not actually paid CA because of the overlapping benefit rule can receive the carer premium in the calculation of means-tested benefits without the severe disability premium being affected.

For further information call CarersLine on 0808 808 7777 and ask for our information sheet Carer’s allowance and the severe disability premium.