Advice on finance for carers
If you’re caring for your parent, there is financial help out there for you. We uncover the benefits and allowances that you can claim. Money Advice Service research shows that almost a third of carers struggle to cover basic living costs, with more than one in five in debt and struggling to cope financially
Carer’s Allowance, which pays £59.75 a week, is the main benefit that you might be able to claim. It is available if you are aged 16 or over, and spend at least 35 hours a week looking after someone with substantial caring needs, who must receive a qualifying disability benefit
You cannot claim the allowance if you earn more than £100 a week (after tax), are in fulltime education or if your State Pension or certain other benefits give you more than £58.45 a week
However, it’s still worth applying for Carer’s Allowance as you could be entitled to extra money that would be paid out with other benefits, such as Jobseeker’s Allowance
It can take four to six weeks for your allowance to be processed, and it can be backdated for up to three months if you began caring before you applied
Other benefits and help
If you can’t claim Carer’s Allowance you may still be able to receive some financial help
Carer’s Credit is a key option if you are looking after one or more people for at least 20 hours a week
Carer’s Credit is a National Insurance credit that is provided to carers to ensure that there are no gaps in NI contributions and to make sure they are building up their entitlement to the State Pension
If you are receiving Carer’s Allowance you don’t need to apply for Carer’s Credit as this is automatically put in place
If you are disqualified from receiving Carer’s Allowance because you are being paid certain other benefits, you could claim the Carer’s Premium. This is worth £33.30 a week, and is included in the calculation for Income Support, income-based Jobseeker’s Allowance and other employment-related benefits, as well as Council Tax Reduction and Housing Benefit
Carer’s Addition is an equivalent benefit (you can claim one of these, not both), which is paid with Pension Credit
If you live with the person you’re caring for, you may qualify for a Council Tax reduction. Contact your local council to see whether you qualify for any help
You can also take advantage of local and national schemes. If you and your parent would like to get out more often, you could ask them to invest in a Disabled Persons Railcard. This costs £20 a year and entitles them and any adult they travel with to a third off most rail tickets across Britain
Caring for someone can take its toll on your physical and mental health, social life, career and relationships. You may feel guilty about making an unkind comment to your parent in the heat of the moment. Likewise, you could feel awful about having some personal time away from your parent. These feelings are perfectly natural and are shared by most carers, but there are some things you can do to make yourself feel better
Local councils recognise that being a carer is physically and emotionally draining . For this reason, they offer a Personal Budget for carers, which is a one-off payment to help carers look after their own health and wellbeing. It is intended to benefit you as a carer, but this could comprise driving lessons, funding for a hobby or a holiday, or paying for equipment to help with caring (such as a mobile phone or a dishwasher)
You will need to take a carer’s assessment to see if you’re eligible to receive a Personal Budget. The amount you receive will depend on your council’s budget and what needs they identify
There are a number of charities and support groups you can speak to, including Carers UK, which can offer advice and put you in touch with local carer support groups, so that you can speak with other people in a similar situation.
Finally, take advantage of general money advice, such as the Money Advice Service’s Health Check
All information accurate at time of publication
This article is provided by the Money Advice Service. All information accurate as at 5 September 2013.
