Overlapping benefit rules
You cannot receive payment of Carer's Allowance or Carer Support Payment if you receive certain other income replacement benefits that are paid at a higher rate. This means that even although you may satisfy the eligibility criteria for two or more income replacement benefits at the same time, you will only receive payment of the one which is the highest amount.
The following benefits overlap with Carer's Allowance and Carer Support Payment:
- State Pension
- Jobseeker's Allowance (contribution-based)
- Employment and Support Allowance (contributory)
- New style Jobseeker's Allowance
- New style Employment and Support Allowance
- Incapacity Benefit
- Maternity Allowance
- Bereavement Allowance
- Widows Pension
- Widowed Mothers/Parents Allowance
- Severe Disablement Allowance.
For example, you may be receiving a State Pension of £107.45 per week and decide to claim Carer Support Payment for looking after your husband who has recently been awarded Attendance Allowance. Although you satisfy the eligibility criteria for Carer Support Payment and you will have entitlement to it, it cannot be paid to you as it overlaps with your State Retirement Pension. You will therefore continue to receive your State Retirement Pension as this is a higher amount than what Carer Support Payment is.
Underlying entitlement
It may still be worth claiming Carer Support Payment even if the overlapping benefits rules means that you will not get paid it. This is because entitlement to Carer Support Payment (including underlying entitlement) gives you entitlement to an extra used in the calculation of Income Support, Income-based Jobseeker's Allowance, Income-related Employment and Support Allowance, Pension Credit, Council Tax Reduction, Housing Benefit and Universal Credit.
Entitlement to an extra amount as a carer
If you are paid Carer's Allowance or Carer Support Payment, you may qualify for an extra amount in your entitlement. The extra amount of money is included in the calculation of Income Support, Income-based Jobseeker's Allowance, Income-related Employment and Support Allowance, Pension Credit, Council Tax Reduction, Housing Benefit and Universal Credit.
As these benefits are means-tested, entitlement depends on your income and savings.
The extra amount for being a carer is included in the calculation of the above benefits if you are either in receipt of Carer's Allowance, Carer Support Payment or if you have underlying entitlement.
The Carer Premium/Addition can be worth up to £45.60 per week (April 2024 rates).
Impact on the person you look after's benefits
Receiving Carer's Allowance or Carer Support Payment may impact on the benefits of the person that you are caring for. This is because they may lose entitlement to either the Severe Disability Premium or the Severe Disability Addition when someone receives Carer's Allowance or Carer Support Payment for looking after them. The Severe Disability Premium is an extra amount of money included in the calculation of Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance, Council Tax Reduction and Housing Benefit. The Severe Disability Addition is an equivalent amount paid with Pension Credit.
The Severe Disability Premium/Addition is payable when someone:
- is getting either Attendance Allowance or the middle/highest rate Care Component of Disability Living Allowance AND
- is living on their own (or can be treated as living on their own) AND
- no-one is receiving Carer's Allowance or Carer Support Payment for looking after them.
The Severe Disability Premium is not affected if the carer only has underlying entitlement to Carer's Allowance or Carer Support Payment.
If someone no longer satisfies the conditions for the Severe Disability Premium/Addition, they may lose up to £81.50 per week from their benefit (April 2024 rates) .
If you are unsure whether claiming Carer Support Payment may affect another person's benefit entitlement, please contact the Welfare Rights Team.
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