Benefits paid to the person you care for

If you claim Carer's Allowance, the person you are looking after may get less money if they receive any means-tested benefits. These include Pension Credit (if they are over 60); Income Support or Jobseeker's Allowance (if they are under 60); Council Tax Benefit or Housing Benefit.

This is because they would lose their entitlement to:

• the additional amount for' severe disability', which increases the amount of Pension Credit paid to disabled people; and 
• Severe Disability Premium (SDP), which increases the amount of Council Tax Benefit, Housing Benefit and Income Support or Jobseeker's Allowance paid to disabled people.

To qualify for the severe disability additional amount and SDP, the disabled person must have no one 'officially' looking after them. So if you receive Carer's Allowance, this condition is no longer met. How much money they will lose will depend on their situation:

• If the person you look after is living on their own they will lose their severe disability additional amount or SDP.
• If the person you care for is part of a couple (with a partner who is also disabled but doesn't have a carer who gets Carer's Allowance), they will only get single rate severe disability additional amount or SDP instead of each getting it. 
• If both members of a couple have a carer claiming Carer's Allowance they won't get any severe disability additional amount or SDP.

If you put in a claim for Carer's Allowance, but do not actually receive it because of the overlapping benefits rule, the person you are caring for can still qualify for the severe disability additional amount and SDP.

Before you put in a claim for Carer's Allowance, check with the person you are caring for to see if their benefits will be affected. If you would like more advice on this, contact SeniorLine.

The 'overlapping benefits rule'

Carer's Allowance is one of a group of income replacement benefits which can't usually be paid on top of each other, due to the 'overlapping benefits rule'. This means that even if you are eligible, you might not get paid Carer's Allowance if you are getting one of the following benefits:

• State Retirement Pension;
• Incapacity Benefit;
• Severe Disablement Allowance;
• Widow's Benefits and Bereavement Benefits;
• Maternity Allowance;
• Contribution-based Jobseeker's Allowance;
• Unemployability Supplement; or 
• State Training Allowance.

If you are receiving more than the rate of Carer's Allowance (£50.55 a week) from one of the benefits in the list, you won't get any Carer's Allowance. But if you are receiving less than £50.55 from one of these benefits you will be paid an amount of Carer's Allowance that brings your weekly benefit up to £50.55.

For example, if you are getting a full basic State Retirement Pension of £90.70 per week you will not be paid any Carer's Allowance. But if you are only receiving a reduced State Retirement Pension of £32 a week you should receive £18.55 Carer's Allowance, bringing the total up to £50.55.

If your partner claims one of these benefits and they get extra money for you because you are a dependant, you may also be affected by the 'overlapping benefits rule'. In some cases it is better for your partner to continue getting the dependant's addition, and in other cases it would be better if they gave this up so you can claim Carer's Allowance (this depends on which benefit would give you more money between you both). SeniorLine can give advice on what would be best for you - call freephone 0808 800 6565 (0808 808 7575 if you are in Northern Ireland).

If you cannot get Carer's Allowance because of the overlapping benefits rule, it may still be important for you to put in a claim. This is because you could get extra money as part of any Pension Credit, Income Support, Council Tax Benefit or Housing Benefit. See the section called Council Tax and Housing Benefit

Home responsibilities protection

Home responsibilities protection was introduced in 1978 to help protect the pension of people who do not work because they are caring for a child or a sick or disabled person. It works by reducing the number of years for which you have to satisfy the National Insurance contribution conditions for your State Retirement Pension.

You will qualify for a year of 'home responsibilities protection' if:

• you do not qualify for Carer's Allowance but you look after someone for at least 35 hours a week, and the person you care for receives Attendance Allowance or Disability Living Allowance care component at the middle or highest rates (and has received it for 48 weeks in the past year); or
• you receive child benefit for a child under 16; or
• you get Income Support on the basis that you are a carer.

If you get child benefit or Income Support as a carer, you should get home responsibilities protection automatically. If not you should apply for home responsibilities protection using form CF411. Contact your local benefits office, Jobcentre Plus or The Pension Service for a form. Or call The Pension Service on 0845 606 0265 (textphone 0845 606 0285). Alternatively you can access and print off a copy from the Directgov website. See Useful contacts.

If you get Carer's Allowance you shouldn't normally need home responsibilities protection because you will receive National Insurance Contribution Credits.

If you are in any doubt about whether you are entitled to claim or if your State Retirement Pension is protected while you are caring, you can get some advice from SeniorLine.

Carer's Allowance and your means-tested benefits

Carer's Allowance counts in full as income when means-tested benefits are calculated. This means that if you are claiming Pension Credit, Council Tax Benefit or Housing Benefit (and rates rebate in Northern Ireland), your benefit will be adjusted to take into account the amount of Carer's Allowance you are receiving. In most cases you will find you are better off, as you will become eligible for the carer's additional amount (for Pension Credit) or carer's premium for other benefits. See our section on Income Support and Pension Credit for carers