Carers Allowance - does it affect wtc / ctc?

whiteswan

Hi

I have just been awarded highest rate Dla both elements.

My neighbour cares for me and helps me every single day and also during the night time if required.

On the face of it she seems to qualify to be able to apply for carers allowance - however she is reluctant to as she is under the impression that as its a taxable benefit it will go towards her income and affect her wtc/ctc claim.

She is a single parent works 16 hours a week and earns approx £98 per week - she has 1 child aged 2 years old who goes to nursery 3 days a week and I believe she also gets help with paying for this as well.

Is she correct - will it adversely affect her credits? She devotes so much time to helping me that without her help/aid I would be lost and just want her to get what she is entitled to - or will it make her worse off ?

Thank you for reading.

Dave

sleepless_saver

Your neighbour is correct unfortunately. Carers allowance would be counted as income for tax credits purposes.
http://www.hmrc.gov.uk/taxcredits/payments-entitlement/other-benefits/affect-taxcredits/disability-benefits.htm

Also if you live alone and get the severe disability premium with income related benefits, her claiming carers allowance could affect your benefits too.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Caringforsomeone/DG_10012529

whiteswan

sleepless_saver wrote: »

Your neighbour is correct unfortunately. Carers allowance would be counted as income for tax credits purposes.
http://www.hmrc.gov.uk/taxcredits/payments-entitlement/other-benefits/affect-taxcredits/disability-benefits.htm

Also if you live alone and get the severe disability premium with income related benefits, her claiming carers allowance could affect your benefits too.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Caringforsomeone/DG_10012529

Hi

Surely that's not fair - as she is saving the state money in providing me with a carer - but then I know life and benefits isn't about being fair.

Thank you for your very quick response.

Dave

Icequeen99

whiteswan wrote: »

Hi

Surely that's not fair - as she is saving the state money in providing me with a carer - but then I know life and benefits isn't about being fair.

Thank you for your very quick response.

Dave

Each pound of income reduces tax credits by 41p in the £ so overrall she should still be better off getting the CA?

Unless there are other benefits it might affect. Is she claiming HB/CTB etc?

IQ

FBaby

whiteswan wrote: »

Hi

Surely that's not fair - as she is saving the state money in providing me with a carer - but then I know life and benefits isn't about being fair.

Thank you for your very quick response.

How don't see how it is unfair. She is not saving the state money since she is already claiming benefits. Tax credits are to provide further income to families on low income,. Why should it take into consideration some income but not other?

What is so wrong with helping a close neighbour for free when you do have the time to do so and you are already receiving help from the state?