Carer’s Allowance, USA News (Wales, UK): People across the region are being urged to check their eligibility for a little-known government payment worth £1,495.40 every year. According to money experts PensionBee, more than 500,000 individuals who qualify for the financial support are currently failing to claim it.
Posting previously on social media, PensionBee highlighted the existence of the government payment. Carer’s Allowance is a weekly payment provided by the government for individuals who supply at least 35 hours of unpaid care each week. The benefit is currently valued at £86.45 a week.
Beyond the weekly amount, the allowance carries additional benefits that often receive less attention. Carer’s Allowance comes with automatic National Insurance credits, which contribute directly toward an individual’s state pension. For anyone who has reduced their working hours or stopped employment entirely to care for someone, the claim helps protect their state pension record.
Eligibility and Qualifying Conditions
To qualify for the payment, applicants must spend a minimum of 35 hours a week caring for someone who receives specific disability benefits. Qualifying care can involve helping with cooking and washing, managing household tasks like bills and shopping, or taking the individual to medical appointments.
Additional rules apply to applicants:
- Must be aged 16 or over
- Must spend at least 35 hours a week caring
- Must have been in England, Scotland or Wales for at least two of the last three years
- Must normally live in England or Wales, or reside abroad as a member of the armed forces
- Must not be in full-time education or studying for 21 hours a week or more
- Must not be subject to immigration control
- Earnings must be £204 or less a week after tax, National Insurance, and expenses
The person receiving care must already collect an approved benefit, such as Personal Independence Payment, Disability Living Allowance, Attendance Allowance, or Armed Forces Independence Payment.
Proposed Changes and Tapered Reductions
Ahead of the autumn budget, the government announced a potential change to the allowance structure. Under current regulations, individuals earning more than £204 a week after deductions lose eligibility entirely. However, Andy Burnham indicated that this strict cliff-edge limit will be replaced by a tapered reduction.
Carers UK welcomed the announcement. Emily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, described the current cliff-edge limit as one of the most punitive in the benefits system, noting that unpaid carers frequently lose 100% of their benefit rather than a proportional reduction for additional earnings.
According to the Department for Work and Pensions, applicants do not need to be related to or live with the person they care for. Claimants receive no extra payment for caring for more than one person, and if multiple individuals care for the same person, only one can claim the allowance. Claimants can backdate their claims by up to three months.
