Should I claim Carer's allowance?

Tristesse

I am hoping to be awarded higher rate care DLA for my son aged 2 which apparently comes with a tax credit premium. My husband works but we are on a very low income and receive full WTC, CTC and HB.

According to HB, the DLA isn't counted but the extra tax credits are but with a disregard of £50. So if I get £70 extra tax credits, I will be using £20 to top up the rent, fair enough.

But Carers is also included as income for tax credit purposes so would be taken into account and reduce the award and possibly reduce the HB award as I will suddenly have an income similar to my husband's earned income.

It's so confusing! I've been advised by disability charities that it is something I should claim as my son's condition makes it impossible for me to work, and I want to protect my NI contributions, but surely they are already being protected under the Home Responsibilities scheme as I receive child benefit for him? I'd rather not to be honest.

What a minefield. I can see all sorts of overpayments being generated and mistakes being made whatever happens and an almighty financial mess on top of everything else

Thanks in advance.

DX2

If you would rather not claim it then don't. As long as you inform people asap there shouldn't be an almighty mess. In theory you will have to inform tax credits to get the disability premium, then inform HB and CTB.
I think in your case it appears they are giving with the one hand but taking back from the other.

zzzLazyDaisy

Just to say my DIL was in the same situation. She did claim carer's allowance but as you say her tax credits were reduced. However, over all, she was a bit better off because she also got a disability premium on her council tax benefit which meant the amount she was allowed to have before deductions was increased.

I hope that makes sense?

Also, carer's allowance can be backdated up to 3 months after the DLA award is made. That backdated payment is counted as capital, not income, for tax credits and also for CTB, so overall it could still be worth it to you to claim.

However in order to get carer's allowance you do actually have to claim it. So if you don't want it, don't claim it.

cidergirl

Tristesse wrote: »

I am hoping to be awarded higher rate care DLA for my son aged 2 which apparently comes with a tax credit premium. My husband works but we are on a very low income and receive full WTC, CTC and HB.

According to HB, the DLA isn't counted but the extra tax credits are but with a disregard of £50. So if I get £70 extra tax credits, I will be using £20 to top up the rent, fair enough.

But Carers is also included as income for tax credit purposes so would be taken into account and reduce the award and possibly reduce the HB award as I will suddenly have an income similar to my husband's earned income.

It's so confusing! I've been advised by disability charities that it is something I should claim as my son's condition makes it impossible for me to work, and I want to protect my NI contributions, but surely they are already being protected under the Home Responsibilities scheme as I receive child benefit for him? I'd rather not to be honest.

What a minefield. I can see all sorts of overpayments being generated and mistakes being made whatever happens and an almighty financial mess on top of everything else

Thanks in advance.

i think really it can only make you better off but why not try putting in both amounts to entitledto.com and see which one comes out better