The Department for Work and Pensions (DWP) has been asked to “make an assessment of the potential merits of introducing a benefit” for people over the age of retirement who are caring for relatives and do not qualify for Carer's Allowance. A retiree cannot be awarded full State Pension and Carer’s Allowance at the same time, however, DWP said an older claimant could still be eligible for Housing Benefit.
In a written response to Labour MP, Rosie Duffield, DWP Minister for Disabled People, Tom Pursglove MP, explained how Carer’s Allowance “aims to provide a measure of financial support and recognition for people who give up the opportunity of full-time employment, in order to provide regular and substantial care for a severely disabled person”.
He continued: “For those over the age of retirement, the State Pension is intended to replace income when work ceases. It has been a long-held feature of the UK’s benefit system under successive governments that, where someone is entitled to two benefits for the same contingency, then whilst there may be entitlement to both benefits, only one will be paid to prevent duplicate financial provision for the same need.”
The New State Pension is currently worth up to £185.15 per week while the Basic State Pension is worth up to £141.85. Carer’s Allowance is a fixed payment of £69.70 each week.
Mr Pursglove explained that where underlying entitlement of Carer’s Allowance occurs - all entitlement conditions are met, but the overlapping benefit rule prevents payment - additional support may be available through Pension Credit, including the additional amount payable to carers in Pension Credit.
This additional amount is currently £38.85 a week, but will increase to £42.75 a week from April as part of the annual benefits uprating which this year will see State Pension and most benefits increase by 10.1 per cent.
He added: “It is paid to recognise the additional contribution and responsibilities associated with caring and means that lower income pensioners with caring responsibilities can receive more than other lower income recipients of Pension Credit.
“If a pensioner’s income is above the limit for Pension Credit, he or she may still be able to receive Housing Benefit.”
Eligibility for Carer’s Credit
You might be eligible for Carer’s Credit if you’re not eligible for Carer’s Allowance.
You could get Carer’s Credit if you’re caring for someone for at least 20 hours a week.
Carer’s Credit is a National Insurance credit that helps with gaps in your National Insurance record - your State Pension is based on your National Insurance record.
Find out more about National Insurance credits on GOV.UK, here.
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