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  • FIRST POST
    • Brighty
    • By Brighty 8th Sep 17, 10:55 AM
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    Brighty
    Carers allowance, earning limit and pensions
    • #1
    • 8th Sep 17, 10:55 AM
    Carers allowance, earning limit and pensions 8th Sep 17 at 10:55 AM
    Hi all

    My wife currently receives CA for our son.

    We have just relocated back up north and as the kids are now back at school she's looking for part time work.

    She visited her old work yesterday, a care home, and was pretty much offered a job on the spot.

    Hours and shifts to still be thrashed out, but it's obviously not worth her earning more than the allowed £116 a week as she'd lose CA and be working all those extra hours for nothing.

    Hours and shifts could be variable and they often phone up looking to cover extra shifts due to holidays and sickness

    She'll be paid monthly, so am i right in thinking that they ignore what she earns in a particular week and just look at her monthly pay slip and average out by multiplying it by 12 and dividing by 52 to get an average weekly wage for that month? So she could earn over £116 one week, so long as the total for that month is under £502?

    Secondly, i understand that she can also deduct half of any pension payments from the total. So is it possible to open a stakeholder pension or SIPP and then any month she earns over £502, put double the excess into a pension. Do they take account of pension payments month by month, or by the year?

    If anyone does the above, any suggestions of a good pension provider that can be opened with a minimal initial deposit, allows variable monthly payments, preferably online, and also allows a v small compulsory monthly payment for the months where she earns under the limit?

    Thanks

    Brighty
    Last edited by Brighty; 08-09-2017 at 11:05 AM.
Page 1
    • xylophone
    • By xylophone 8th Sep 17, 11:22 AM
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    xylophone
    • #2
    • 8th Sep 17, 11:22 AM
    • #2
    • 8th Sep 17, 11:22 AM
    Won't the care home offer a pension scheme to which she could contribute?

    https://www.gov.uk/workplace-pensions/joining-a-workplace-pension

    She should check the form of tax relief (net pay/relief at source).

    https://www.nowpensions.com/help-centre/faqs/administration/whats-the-difference-between-net-pay-and-relief-at-source

    Otherwise she could open a SIPP, set a minimum monthly payment and add more when she wished.

    http://www.hl.co.uk/partners/search/sipp?theSource=PCHLS&Override=0&adg=G+HLBS+HLS&gcl id=EAIaIQobChMI0_O5ga6V1gIV1MqyCh1yqgbYEAAYASAAEgJ QMfD_BwE

    https://www.moneyadviceservice.org.uk/en/articles/stakeholder-pensions

    https://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/aviva/

    https://www.legalandgeneral.com/pensions-retirement/stakeholder-pensions/
    • Mojisola
    • By Mojisola 8th Sep 17, 11:30 AM
    • 28,510 Posts
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    Mojisola
    • #3
    • 8th Sep 17, 11:30 AM
    • #3
    • 8th Sep 17, 11:30 AM
    Hours and shifts to still be thrashed out, but it's obviously not worth her earning more than the allowed £116 a week as she'd lose CA and be working all those extra hours for nothing.

    Hours and shifts could be variable and they often phone up looking to cover extra shifts due to holidays and sickness

    She'll be paid monthly, so am i right in thinking that they ignore what she earns in a particular week and just look at her monthly pay slip and average out by multiplying it by 12 and dividing by 52 to get an average weekly wage for that month?
    Originally posted by Brighty
    AIUI, the earnings limit is applied per week. As the carer is also doing at least 35 hours care to claim CA, there's a practical limit on how many hours they can also work.
    • Brighty
    • By Brighty 8th Sep 17, 11:45 AM
    • 729 Posts
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    Brighty
    • #4
    • 8th Sep 17, 11:45 AM
    • #4
    • 8th Sep 17, 11:45 AM
    The home do offer a pension i'm sure, but wife will probably earn too little to be auto enrolled, even if she was, it would be a set percentage each month, not variable as and when we please to suit the earnings limit. Will prbably make sense to join anyway to take advantage of employers contributions, but would still need to set up our own

    Thanks for the pension links, i'll check them out
    Last edited by Brighty; 08-09-2017 at 11:51 AM.
    • Brighty
    • By Brighty 8th Sep 17, 11:48 AM
    • 729 Posts
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    Brighty
    • #5
    • 8th Sep 17, 11:48 AM
    • #5
    • 8th Sep 17, 11:48 AM
    AIUI, the earnings limit is applied per week. As the carer is also doing at least 35 hours care to claim CA, there's a practical limit on how many hours they can also work.
    Originally posted by Mojisola
    But how can they apply it per week when someone is monthly paid? The only evidence of earnings is your payslip, will just states hours worked that month

    Found this

    "If you are in employment and are paid monthly, your monthly earnings are normally multiplied by 12 months to get a yearly figure and then divided by 52 weeks to get a weekly figure."
    http://www.carersuk.org/help-and-advice/financial-support/help-with-benefits/carers-allowance?gclid=EAIaIQobChMIvurs1rSV1gIVYbHtCh06lA gcEAAYASAAEgLu_vD_BwE

    She' only looking at working 13-16 hours a week, probably while the kids are at school. It's quite easy for a mother to care for at least 35hrs a week outside of school hours
    Last edited by Brighty; 08-09-2017 at 11:50 AM.
    • TELLIT01
    • By TELLIT01 8th Sep 17, 12:12 PM
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    TELLIT01
    • #6
    • 8th Sep 17, 12:12 PM
    • #6
    • 8th Sep 17, 12:12 PM
    As the carer is also doing at least 35 hours care to claim CA, there's a practical limit on how many hours they can also work.
    Originally posted by Mojisola
    Even if working 35 hours per week there is no practical issue with caring 35 hours per week as well. Clearly there would be a problem with claiming CA due to earnings if working 35 hours per week.
    If caring for a disabled child, the parent is effectively doing that every hour they aren't at work.
    • xylophone
    • By xylophone 8th Sep 17, 12:17 PM
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    xylophone
    • #7
    • 8th Sep 17, 12:17 PM
    • #7
    • 8th Sep 17, 12:17 PM
    If caring for a disabled child, the parent is effectively doing that every hour they aren't at work.
    But so are parents of non disabled children?
    • Brighty
    • By Brighty 8th Sep 17, 12:41 PM
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    Brighty
    • #8
    • 8th Sep 17, 12:41 PM
    • #8
    • 8th Sep 17, 12:41 PM
    But so are parents of non disabled children?
    Originally posted by xylophone
    Rightly or wrongly, the requirement for carers allowance is that you care for a minimum of 35hrs, not 35hrs over and above a non disabled child.

    "Its about helping people get their entitlement! Not about benefits policy!"
    • BorisThomson
    • By BorisThomson 8th Sep 17, 2:24 PM
    • 538 Posts
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    BorisThomson
    • #9
    • 8th Sep 17, 2:24 PM
    • #9
    • 8th Sep 17, 2:24 PM
    Rightly or wrongly, the requirement for carers allowance is that you care for a minimum of 35hrs, not 35hrs over and above a non disabled child.

    "Its about helping people get their entitlement! Not about benefits policy!"
    Originally posted by Brighty
    Carers Allowance continues to be the most abused benefit.
    • teddysmum
    • By teddysmum 8th Sep 17, 3:03 PM
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    teddysmum
    What would happen (re working) in school holidays, when the child also needs care in normal school hours ?
    • xylophone
    • By xylophone 8th Sep 17, 4:36 PM
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    xylophone
    "Its about helping people get their entitlement! Not about benefits policy!"
    I wasn't aware that I made any comment about benefits policy.
    • xylophone
    • By xylophone 8th Sep 17, 4:48 PM
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    xylophone
    I might add that having a relative's child born with very severe Smith Lemlie Opitz Syndrome, and family friends who had children with Kanner's Syndrome ("classic" autism), Asperger's Syndrome and Fragile X, I am very aware of how hard it is to cope with a disabled child.

    But this does not detract from the truth of the statements in posts 6 and 7.
    • kw5
    • By kw5 8th Sep 17, 5:38 PM
    • 19 Posts
    • 2 Thanks
    kw5
    Hi,
    From experience if you earn over the £502 in a month your CA will be stopped, even if the previous or subsequent month you earn nothing.

    HTH, Kirsty
    • Brighty
    • By Brighty 11th Sep 17, 9:41 AM
    • 729 Posts
    • 378 Thanks
    Brighty
    What would happen (re working) in school holidays, when the child also needs care in normal school hours ?
    Originally posted by teddysmum
    She would use holiday and/or change shifts around to only work when i'm home (evenings, weekends, nights), worst case we have friends who can look after them
    • Brighty
    • By Brighty 11th Sep 17, 9:59 AM
    • 729 Posts
    • 378 Thanks
    Brighty
    I might add that having a relative's child born with very severe Smith Lemlie Opitz Syndrome, and family friends who had children with Kanner's Syndrome ("classic" autism), Asperger's Syndrome and Fragile X, I am very aware of how hard it is to cope with a disabled child.

    But this does not detract from the truth of the statements in posts 6 and 7.
    Originally posted by xylophone
    In order to get CA, the child must be in reciept of mid rate or higher DLA. The criteria for DLA measure how much care they need over and above a non disabled child
    • Colin_Maybe
    • By Colin_Maybe 15th Sep 17, 8:52 AM
    • 1,269 Posts
    • 555 Thanks
    Colin_Maybe
    But how can they apply it per week when someone is monthly paid? The only evidence of earnings is your payslip, will just states hours worked that month

    Found this

    "If you are in employment and are paid monthly, your monthly earnings are normally multiplied by 12 months to get a yearly figure and then divided by 52 weeks to get a weekly figure."
    http://www.carersuk.org/help-and-advice/financial-support/help-with-benefits/carers-allowance?gclid=EAIaIQobChMIvurs1rSV1gIVYbHtCh06lA gcEAAYASAAEgLu_vD_BwE

    She' only looking at working 13-16 hours a week, probably while the kids are at school. It's quite easy for a mother to care for at least 35hrs a week outside of school hours
    Originally posted by Brighty
    That's correct (from experience).

    I get paid calendar monthly but work 2 days a week for a fixed number of hours and shifts which should keep me under the limit but because the number of Mondays & Tuesdays within each month varies it means my monthly pay varies. I think it works out that 1 in 3 or so months I'll be over the limit despite not actually having any extra in my pocket. I've had many, many conversations with them but the only way around it was if my company would pay me weekly (they won't).
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