The Carer’s Allowance Payment Rates will be increasing from £67.25 to £67.60 per week from April 2021.
Who is eligible for Carer’s Allowances?
Carer’s allowance is available to those who care for someone for at least 35 hours a week. In addition to this the person you care for must receive one of these benefits:
- Personal Independence Payment – daily living component
- Disability Living Allowance – the middle or highest care rate
- Attendance Allowance
- Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit
- Constant Attendance Allowance at the basic (full day) rate with a War Disablement Pension
- Armed Forces Independence Payment
You do not need to be related or living with the person you are caring for. However, you can only claim Carer’s Allowance once even if you care for more than one person. Plus, if two people care for one person only one of you can claim the allowance.
Should I consider Carer’s allowance?
It is very important you think carefully before claiming Carer’s Allowance because this can affect the eligibility and payment for other benefits for both the unpaid carer and the person being cared for.
When you start receiving Carers allowance the person you care for will stop receiving a severe disability premium paid with their benefits, and an extra amount for severe disability paid with Pension Credit (if they receive one). They may also lose their reduced Council Tax rate, you will need to contact your local council about this.
Claiming Carers Allowance may also change your benefit payments. However, your total benefit payments normally stay the same or increase.
Therefore, we advise that you and the person you care for calculate how claiming Carer’s Allowance will affect both of you and whether claiming Carer’s Allowance would be beneficial.
To find out more about Carers Allowance please visit the HMRC website here: https://www.gov.uk/carers-allowance
How can we help?
At Hawsons we have a dedicated team of specialist healthcare and medical accountants at our offices in Sheffield, Doncaster, and Northampton. The healthcare sector continues to become ever more specialised, with changes in legislation and funding affecting both clinical and non-clinical matters. At Hawsons our team of specialist healthcare accountants offer professionals advice and guidance that is tailored to their individual needs and requirements, providing a full range of proactive services.
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0114 266 7141