If you look after a partner, friend or relative who would find it difficult to manage without your support, then you're a carer.
There’s a growing sector of what are known as ‘sandwich’ carers - those who provide care for sick, disabled, or older adult relatives as well as for dependent children.
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These unpaid carers can lose out financially by cutting work to support loved ones - to the tune of around an average £6,400 a year in annual salary, according to retirement specialist Just Group.
Here’s what you need to know.
What is Carer's Allowance?
Carer’s allowance pays out if you spend at least 35 hours a week providing regular care to someone – as long as you don’t earn more than £196 a week.
The carer's allowance rate is £83.30 per week, and it is increased each April. As well as topping up your income, this benefit means you'll also get national insurance credits each week towards your pension - if you're under state pension age.
However, if you are already claiming a state pension and the amount you receive is more than £83.30, you won't be paid any carer's allowance.
One of the issues surrounding this benefit is that much of the money set aside by the government goes unclaimed. According to estimates by Policy in Practice, there’s £2.4 billion unclaimed carer’s allowance.
Further, only one in five (20%) carers who had reduced or stopped work said they received carer’s allowance, according to a separate study by Just Group.
Nearly half (47%) said they knew about the benefit but did not claim it. And almost one in three were unaware of, or unsure about the state benefit. This was split between 8% who said they had never heard of it and a further 21% saying that they had heard of it but were unsure what it was.
You can make a claim online – you’ll need your National Insurance number to hand as well as details about you and the person you care for.
Bear in mind, however, that a claim for carer’s allowance could impact the benefits that the person you’re caring for receives. For example, if the person you care for receives the severe disability premium, it will stop once you claim the carer element.
What is Carer's Credit?
Carer’s credit is an important benefit to help you save for your pension if you are not earning or on a low income.
It’s not money in the bank like the carer’s allowance, but it will translate to that later in life. Carer’s credit is a national insurance credit to help plug gaps in your record to ensure you don’t miss out on the state pension as a result of not working. The amount of state pension you receive is based on your national insurance record.
Since many people give up work to care for loved ones, they could end up losing out on state pension entitlement.
Carer’s credit is for those caring for someone at least 20 hours a week who receives one of several benefits including the attendance allowance and the disability living allowance.
You can check eligibility and claim by downloading a form online.
You should also make sure you are not missing out on Pension Credit. If you care for another adult, you could receive an extra £46.40 a week, provided you get Carer’s Allowance (or you’ve claimed Carer’s Allowance but are not being paid because you receive another benefit that pays a higher amount). If you and your partner have both claimed or are currently receiving the Carer’s Allowance, you can both receive this extra amount.
What is the carer element of Universal Credit?
If you claim Universal credit, you may be able to get an extra amount because of your caring role, which is known as the 'carer element'. This is currently worth £201.68 a month.
You don't have to claim carer's allowance to be eligible, but you must meet most of its eligibility criteria. This includes that you must spend at least 35 hours a week providing care.
To make a claim, you must inform the Universal Credit team of your caring role and provide the name, date of birth, and National Insurance number of the person you care for.
It’s worth knowing, however, that like with carer’s credit, your claim could impact the benefits that the person you’re caring for receives. For example, if the person you care for receives the severe disability premium, it will stop once you claim the carer element.
Can carers get support from their local council?
Your local council might be able to offer some practical help, such as arranging for someone to carry out some of the caring tasks while you have a break – or spend time with other family.
You can ask for a carer's assessment from the social services department of the council covering the area where the person you care for lives. This will report on how caring affects your life and work, and determine what support you need.
As a carer, you may be able to apply for a discount to your council tax bill. Rules differ between local authorities, so you will need to contact your council directly to apply for a reduction.
How to check if you can get support
Take a look at free benefits calculators such as Age UK, Turn2Us and Entitledto to make sure you are not missing out.
Charities such as Age UK, Citizens Advice and Carers UK can also help guide you through the system.
Analysis of over 1.5 million users of the charity’s free online benefits calculator reveals that, over the past year, 60% of people discovered they were eligible for benefits they weren’t claiming, with the total potential value running into the billions of pounds.
“Part of the problem is that there are several barriers to carers claiming benefits meant for them,” said John Perryman, head of policy and public Affairs at Carers UK. “Some common barriers to claiming include many people not actually realising that they are in a caring role. Many just see it as part of family life. The carer’s benefits system is pretty complex, and there are fears about finding time for paperwork and about providing wrong information. There’s also a stigma of turning to the state for support.
Can those who need care get financial assistance?
There are benefits available for those who need care to help with the cost of living, while their health may get in the way of earning.
For example, the attendance allowance is a benefit for people who have reached state pension age who need help with personal care or supervision because of an illness or disability.
There are two rates of attendance allowance paid, depending on how much assistance you require. The lower rate is £73.90 per week for those who need help during the day or at night, and the higher rate at £110.40 is for those who need help during the day and at night, or who are terminally ill.
You can claim online.
Another benefit is the personal independence payment (PIP), which is for people who have extra care or mobility needs.
You can only apply for PIP online in some areas, so starting your PIP claim is usually done over the phone, but there are options for people who can't manage phone calls. You can check your postcode when you start your application to see if an online version can be done.
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