Jasmine Birtles is here to clear up the confusion when it comes to pensions and retirement in our pensions and retirement Q&A, which is exclusive to GB News members. Got a question you'd like Jasmine to answer? Email money@gbnews.uk.
Question: "Can I claim Carer's Allowance if I get the state pension and have a small private pension?"
Jasmine replies:A lot of people are in this position as the ‘squeezed middle’ gets to retirement age while still having a living parent, or a sick partner, around who needs care.
Thank goodness you are able and willing to do this important work!
I asked Chris Ball, Managing Partner at Hoxton Capital Management, for his view on this and he gave me these instructions:
“To qualify for Carer's Allowance, the key criteria focus on the level of care provided rather than solely on the carer's personal income or pension receipts.
"There are several important aspects to this:
“1. Care requirements: The claimant must provide care to someone whoreceives a qualifying disability benefit for at least 35 hours a week.
“2. Earnings threshold: While receiving a state pension and a small private pension does not automatically disqualify someone from receiving Carer's Allowance, there is an earnings limit to consider. As of the current guidelines, the claimant's weekly earnings (after deductions) must not exceed £151. This includes most income, but the state pension is treated differently.
“3. Overlap rule: If the amount you receive from your state pension is equal to or more than the weekly rate of Carer's Allowance, you won't be paid Carer's Allowance. However, it may still be beneficial to apply because if you are eligible, you could receive what's called an 'underlying entitlement,' which might help increase your access to other benefits such as Pension Credit and Housing Benefit.
“4. Private pension: Income from a private pension can affect Carer's Allowance if it takes your total weekly income over the £151 threshold. It's crucial to calculate the total weekly income accurately when assessing eligibility.
“5. Additional benefits: Even if you don't qualify for payments, applying for Carer's Allowance might still be worth it as it can help you qualify for other benefits and credits, including additional amounts for carers in Pension Credit, provided all other conditions are met.”
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I also recommend that you take a look at what it says on the government’s website, Gov.uk, and seek guidance from whichever charity relates to your circumstance.
For example, if the person you are caring for is elderly, speak to Age UK as they are good on this sort of issue.
Macmillan Cancer Support has information on Carer’s Allowance, as does Dementia Carer’s Count.
You can also find information on my website, MoneyMagpie.com, about how to get what you are entitled to as a carer, and of course, you can try the helpline at Carersuk.org.
