Benefits Overview
There are 3 types of social security benefit – those:
· based on a person’s National Insurance (N.I.) contributions record
(e.g. state retirement pension, incapacity benefit).
Remember, if you have paid into the NI system, you should claim as soon as you are entitled.
· based on the person meeting certain criteria, regardless of income/ savings or N.I. record (e.g. disability benefits such as Attendance Allowance and Disability Living Allowance).
It is really important to make sure that the person you care for does claim a disability benefit if they meet the criteria, because this may enable them (and you) to access other sources of help.
· dependent on the income (and/or savings) of a person
(e.g. Carers Allowance, means-tested benefits such as Income
support, Pension Credit and Housing/Council tax Benefit).
Many of these “means-tested” benefits go unclaimed, so do check if you or the cared-for person might be entitled to receive these, to top up your income.
Can more than one social security benefit be claimed at once?
· Some benefits can be paid on top of other benefits, in particular Attendance Allowance, Disability Living Allowance and Child Benefit.
NB. The above benefits are also tax-free.
· Other benefits are known as “earnings replacement benefits”, so you can only receive one of this group at a time – the one which gives you the most money. These include state retirement pension, widow’s benefit, carers allowance, incapacity benefit and job-seekers allowance. This is called the “overlapping benefits rule”.
This is the reason why, if you are in receipt of your state retirement pension, you cannot also receive Carers Allowance, even if you are looking after some-one for 7 days a week, 24hours a day.
· Means-tested benefits can always be paid to top up other benefits, as long as you are on a low enough income, and have disclosed all your income/savings as required to the Benefits Agency.
What benefits can you claim as a carer?
Carers allowance:
You should claim carers allowance(CA) if you meet the following criteria:
· You are caring for some-one for at least 35 hours a week
· The person you care for receives Attendance Allowance or Disability Living Allowance care (high or medium rate)
· You are earning less than £95 per week (after allowable expenses)
· You are not in full-time education.
CA is paid at the rate of £50.55 per week, and for every complete year in which you receive it, you will be credited with N.I. contributions towards your retirement pension.
However, if you are already receiving your state retirement pension, or if you are in receipt of incapacity benefit, then you cannot receive both this and CA (because of the overlapping benefits rule). But if you are on a low income, see below, by claiming CA and establishing your entitlement (even if you cannot actually be paid it), you may be entitled to a higher rate of means-tested benefits.
Income Support:
If you are under 60 years of age and on a low income with limited savings, then you may be able to claim income support to top up your CA, or whilst you are waiting to hear the result of your CA claim, or the Disability Living Allowance/Attendance Allowance claim of the person for whom you care. If you can show you have an entitlement to CA, then your income support assessment will include an extra premium (the carers premium)
Pension Credit:
If you are over 60 years of age, and on a low income, you should claim Pension Credit instead of Income Support. This benefit is more generous than Income Support, and again will include a premium if you are entitled to CA.
Housing Benefit/ Council Tax Benefit:
If you are responsible for paying rent on your home, you can claim Housing Benefit(HB) provided your income is low and your savings are limited. Similarly, you can claim Council Tax Benefit(CTB), if you are either a tenant or an owner-occupier. As with Income Support and Pension Credit, you will get more help if you are entitled to CA. Your claim is made to the local authority.
What benefits can be claimed by the person you care for?
Disability Living Allowance:
People who are under 65 years and who are very disabled or chronically sick physically or mentally, can apply for Disability Living Allowance (DLA) to help with the extra costs of long-term illness or disability, once they have had the condition for at least 3 months. DLA is paid regardless of income or savings, as long as the criteria are met.
(Remember, DLA is paid to the cared-for person, NOT the carer)
There are two components of DLA – the care component for people who need help or supervision indoors, and the mobility component for people who need help in getting about outdoors. The care component can be paid at one of three rates – lower, medium or higher – and there are two rates of mobility component – lower or higher. The lower care component can be paid to people who are not able to prepare a main meal for themselves, even if otherwise, they could manage their own personal care.
(You can only claim CA if the person receives the middle or high rate of care component).
Many people who are awarded DLA will receive both the care and mobility component, but it is quite possible to qualify for one but not the other, according to the nature and extent of the illness/disability.
(So if the cared-for person only receives mobility component, or the low rate of care, you cannot claim CA).
Most awards are for a fixed term, and it is important to re-apply before the fixed term expires. DLA can be paid beyond the age of 65 years, provided the claim was made whilst the person was still under 65.
(If the cared-for person’s DLA stops, your CA stops too; in the event of their death, you can continue to receive CA for 8 weeks before it stops.)
Attendance Allowance:
If some-one with chronic long-term sickness/disability makes their first claim for a disability benefit after their 65th birthday, they must apply for Attendance Allowance (AA) and not DLA. They must have had this condition for at least 6 months before they are entitled to AA.
There is just one component to AA, the care component, paid at either a lower or higher rate – (£44.85 or £67.00) - equivalent to middle or high DLA care. So for some-one claiming AA, problems with getting about outdoors are not taken into account.
(So as long as the cared-for person receives AA, you can claim CA.)
Moreover AA does not have the equivalent of the lower rate DLA care component. So if some-one can manage their own personal care, but does need help to produce meals for themselves, they will not qualify for AA.
Means-tested benefits:
In the same way as a carer can claim means-tested benefits if their income/savings are low enough, the person who is cared-for can also make such claims, see above.
If you, the carer, and the person who you care for, are both entitled to means-tested benefits, this can affect on the total amount of money you can claim between you. In particular, if the person you care for lives alone, and is on income support or pension credit, your award of CA can impact on the amount of benefit they will be paid. In such cases, you should seek our advice.
Council tax reductions:
Remember, if your income is too high for you to receive CTB, you may still be able to reduce your bill if one of the following applies:
· You live with some-one who is severely mentally impaired; in this case you can apply for him/her to be “disregarded” for council tax purpose, if there are just the two of you in the household, you may receive the 25% single person discount,
· Some-one in the house is substantially and permanently disabled, and the house has been adapted to their needs; if this is the case, the council tax on the property can be reduced by a band.
· You are liable for the council tax, and the non-dependant adult(s) living with you is on a very low income; you may receive a reduction of from 7.5% to 25%, dependent upon the level of their income.
Useful telephone numbers:
Benefit Enquiry Line: 0800 88 22 00
Disability Benefits Centre: 0845 7 123456
Carers Allowance Unit: 01253 856 123
Age Concern Local Helpline: 020 8408 8170
Richmond AID Advice: 020 8831 6071
Richmond Community Partnership 020 8481 3112
(provide home visits to help with benefit claims)
How to contact us
If you wish to register as a carer or would like further information please contact the Richmond Carers Centre on 020 8867 2380 or email or visit www.carers.org/richmond
If you need this information in another format please contact the
Richmond Carers Centre on 020 8867 2380
The information in this fact sheet was last updated: May 08
Richmond Carers Centre 4 of 4 Fact Sheet No. 4