Benefit that 'can't overlap' with state pension could stop at 66
Carer's Allowance provides £83.30 a week for people providing at least 35 hours of unpaid care per week to someone receiving certain benefits. There are no age restrictions on claiming or receiving this DWP benefit, but those hoping to claim state pension alongside it will face a potentially unexpected issue.
It's not possible to claim the full amount of state pension and Carer's Allowance at the same time. You might be able to keep a portion of your Carer's Allowance payments but this will depend on your state pension amount.
Your state pension amount is determined by your National Insurance record; you'll need 25 qualifying years of National Insurance contributions or credits to claim the full £230.25 a week from the new state pension.
If you have fewer qualifying years, your payments will be proportionately reduced. The only situation where you can receive both state pension and Carer's Allowance at the same time is if your state pension payments are less than the Carer's Allowance rate of £83.30.
The caring benefit will then supplement your payment to this amount, according to Carers UK. For example, if you receive £70 per week from state pension, you can then get an additional £13.30 from Carer's Allowance, totalling £83.30 per week.
However, if you receive £84 a week from state pension, you won't be eligible for any further Carer's Allowance payments. Those eligible for Carer's Allowance are urged to apply for the benefit even if they won't receive any payments due to the state pension rule, as it could unlock access to additional benefits, reductions and support through what's called an underlying entitlement.
Carers UK explained: "It is still worth applying as you may be able to get what's called an 'underlying entitlement' to Carer's Allowance. This is where it is agreed that you meet the criteria for Carer's Allowance, and you will be sent a letter of 'underlying entitlement'.
"This tells the benefit agencies that you are still a carer, and because of this it may mean certain benefits you're already receiving increase or you may be eligible to receive certain benefits for the first time."
Those claiming other means-tested benefits such as Pension Credit will typically become entitled to any relevant Carer Premium or Carer Addition through this underlying entitlement.
Obtaining Pension Credit can also unlock eligibility for numerous other benefits and support based on individual circumstances, with full details available on the Gov.uk website.
Pension Credit entitlements:
Free prescriptions
Free dental treatment
Warm Home Discount
Cold Weather Payment
Free TV licence if you are over 75
The underlying entitlement letter can also be used to prove your caring role for things like getting a discount or free entry to leisure attractions. You will still need to meet all the usual eligibility requirements for Carer's Allowance in order to get underlying entitlement.
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