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Carers' Allowance Question

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4 years 1 week ago #258362 by King_Drax_I
Carers' Allowance Question was created by King_Drax_I
I'm about to be made redundant from work (in just under 2 weeks), on the basis of ill health. I'm Carer for my daughter who is on PIP and I already have Carers' Credit status.

Once I am retired, I want to claim Carers' Allowance. However, part of my work severance package is that I will receive 12 weeks' pay as a 'buffer' upon leaving.

My question is, how does that fit in with the Carers' Allowance system of me not being allowed to earn more than a certain amount per week? The severance pay will be of the order of £4,000; do the DWP consider that as spread over the whole year, do they look at it as a lump sum, or what? Will I still be able to claim CA in addition to the severance pay?

Thanks in advance :)

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4 years 1 week ago #258392 by Gary
Replied by Gary on topic Carers' Allowance Question
Hi Drax

Carers Allowance and State Pension, CA is an overlapping benefit:

You cannot get the full amount of both Carer’s Allowance and your State Pension at the same time.

If your pension is £67.60 a week or more, you will not get a Carer’s Allowance payment.

If your pension is less than £67.60 a week, you’ll get a Carer’s Allowance payment to make up the difference.

To be eligible to claim CA, your earnings are £128 or less a week after tax, National Insurance and expenses www.gov.uk/carers-allowance/eligibility

I would advise you to contact your local Welfare Rights Organisation who will be able to take all your circumstances into consideration. You can find your local Welfare Rights Organisation to help you with benefit advice by clicking on the link below and putting in your post code, it will then come up with a MAP with a list of agencies.

advicelocal.uk

If you have any further questions please come back to the forum.

Gary

Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: King_Drax_I

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4 years 1 week ago #258398 by King_Drax_I
Replied by King_Drax_I on topic Carers' Allowance Question
Thanks Gary; sorry, I wasn't clear - the redundancy is going to lead to *early* retirement; I can't claim State Pension for another few years yet.

My question is therefore more about wht effect that severance package will have on my ability to claim CA, because for a few weeks the severance package will push me over the earnings limit. But then it will stop. I'm not sure if the money arrives as a lump or as three months' normal pay. If the former, how long does that lump sum stop me from having CA for, given that, spread over a year, it will average out at less than £128 per week.

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4 years 1 week ago #258410 by Catherine
Replied by Catherine on topic Carers' Allowance Question
Hello Drax,

If you receive the payment as a lump sum this will not have any impact on CA, since there is no savings criteria for that particular benefit.

www.gov.uk/carers-allowance/eligibility

Hope that helps, and best wishes for your retirement,
Catherine

Nothing on this board constitutes legal advice - always consult a professional about specific problems
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4 years 1 week ago #258423 by bob.murison
Replied by bob.murison on topic Carers' Allowance Question
Instead of CA maybe worth considering claiming UC as a Carer and thus qualifying for Carer Element and if you are in Scotland also claim CA despite overlapping benefit rule to qualify for the Carer Supplement

Or claiming New Style ESA if you are not fit to work - but would be subject to overlapping benefit rule but maybe worth it if you get put in Support Group

Worth getting advice on this and doing a benefit check or someone doing this for you ?

Benefits and Representation
CAB
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