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Carers Could Lose CA- Over 96P

November 26, 2013

Unbelievable. The earnings threshold should be raised immediately to prevent this happening. Many thanks to Welfare News Service.

Last month’s minimum wage rise will have been received positively by low-income working  families, but for those who care for elderly or disabled relatives, the 12 pence per week rise for those aged 21 and over could mean that they will no longer be eligible for Carer’s Allowance (CA).

In order to be able to claim Carer’s Allowance whilst working, your take home pay must not be greater than £100 per week. Under previous minimum wage levels, those working 16 hours on £6.19 per hour would earn £99.04 per week. They would still be eligible for CA as their earnings would be below the £100 threshold. However, under the new minimum wage levels they would have a take home pay of £100.96 per week. Pushing their income over the £100 threshold.

Carer’s could lose as much as £59.75 per week in Carer’s Allowance. This is leading to some carer’s considering cutting their hours, but in doing so they may no longer be eligible for Working Tax Credits. So much for government claims that they are “making work pay”?

There may be other ways to keep hold of your CA:

In determining your eligibility for Carer’s Allowance, the Department for Work and Pensions will make certain deductions from your gross earning. Tax and National Insurance are those you will probably already be aware of, but did you know that they also take other care costs into account as well as any work pension scheme contributions?

If you pay for someone to care for your elderly or disabled relative when you are at work (apart from another close relative), the DWP will take this into account when calculating your CA. There is a maximum amount they will deduct, but if you paying an amount below this amount you may be able to increase the amount you pay another person to care for your relative, by just a few pounds each week. Seek expert advice in order to determine whether this could be an option for you.

When calculating your entitlement for CA, the DWP will deduct 50% of anything you pay into a work pensions scheme. If you are not yet paying into a work pension scheme or if you think you could increase your contributions by just £2 per week, doing so could push your earnings below the £100 threshold for Carer’s Allowance. Again you should seek professional advice first.

One Comment leave one →
  1. November 26, 2013 7:16 pm

    poor carers get hit again ,they get very little as it is and cant work full time because they look after someone .its a case of buggered if you do and buggered if you don’t

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