Earlier this year, the Department for Work and Pensions (DWP) was 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 as they are overlapping benefits, however, DWP said an older claimant could still be eligible for Housing Benefit.
This week, Conservative MP Andrew Selous asked DWP “how many people lost their Carer’s Allowance because they had reached pensionable age” over the last 20 years. However, Minister for Disabled People, Health and Work, Tom Pursglove MP, said that the DWP “does not hold data on the reason Carer’s Allowance claimants lose their Carer’s Allowance award”.
He added: “There is no upper age limit to claiming Carer’s Allowance, however, it cannot normally be paid with the State Pension.”
Mr Pursglove explained: “It has been a long-held feature of the UK’s benefit system 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.
“Although entitlement to State Pension and Carer’s Allowance arise in different circumstances, they are nevertheless paid for the same contingency - as an income replacement: Carer’s Allowance replaces income where the carer has given up the opportunity of full-time employment in order to care for a severely disabled person, while the State Pension replaces income in retirement.
“For this reason, social security rules operate to prevent them being paid together, to avoid duplicate provision for the same need.”
The DWP Minister went on to explain that if a carer’s State Pension is less than Carer's Allowance, State Pension is paid and topped up with Carer's Allowance to the basic weekly rate of Carer's Allowance - currently £76.75.
He said: “Where Carer’s Allowance cannot be paid, the person will keep underlying entitlement to the benefit. This gives access to the additional amount for carers in Pension Credit of £42.75 a week and even if a pensioner’s income is above the limit for Pension Credit, he or she may still be able to receive Housing Benefit.”
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