As the cost of living crisis continues, and energy bills soar, many families on low incomes may be feeling the financial squeeze. Carers save the economy £132billion every year yet when it comes to their personal finances, figures show they are missing out.
Carer’s Allowance is one of the main welfare benefits to help carers in the UK and is provided by the Department for Work and Pensions (DWP).
Some 500,000 people are estimated to be missing out on the benefit which could top up their income by £69.70 per week – £3,624.40 over a year.
To be eligible, claimants need to be caring for someone for 35 hours or more a week.
A person must not earn more than £132 a week from employment or self-employment, this is after deductions for income tax, National Insurance and for expenses.
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Expenses can include:
- 50 percent of their pension contributions
- Equipment needed to do a job, for example specialist clothing
- Travel costs between different workplaces that are not paid for by the employer, for example fuel or train fares
- Business costs if someone is self-employed, for example a computer they only use for work
The Government website states people may be eligible if they, the person they care for and the type of care they provide meets certain criteria.
The person being cared for must already get one of these benefits:
- Personal Independence Payment (PIP) – daily living component
- Disability Living Allowance (DLA) – the middle or highest care rate
- Attendance Allowance
- Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit
- Constant Attendance Allowance at the basic (full day) rate with a War Disablement Pension
- Armed Forces Independence Payment
The type of care being provided can include help with washing and cooking, taking the person being cared for doctor’s appointments and helping out with household tasks such as managing bill and shopping.
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One does not have to be related to, or live with, the person they care for.
If eligible, a carer can then choose if they would like to be paid weekly in advance or every four weeks with the money being paid straight into their bank account.
This could mean a cash boost of almost £279 each month.
The DWP says that before applying, people will need to make sure they have their:
- National Insurance number
- Bank or building society details (unless they get state pension)
- Employment details and latest payslip
- P45 if they have recently finished work
- Course details if they are studying
- Details of any expenses, for example pension contributions or the cost of caring for children or the disabled person while at work.
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Those in Scotland are able to receive the Carer’s Allowance Supplement which is an extra payment for those who receive their allowance on a certain date and is paid twice a year.
Around 90,000 carers across Scotland have received the extra payment £245.70 in April.
The next payment is due to be paid in October.
According to official statistics from the DWP, in February 2021 there were 1.3 million people claiming the benefit.
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