Carers allowance and State Pension

benstuart

Hello,
I receive carers allowance for looking after my autistic daughter, and receive my state pension in three weeks.
I was surprised to receive a letter from the DWP informing me that I would no longer receive carers allowance when I receive my state pension as it is an "overlapping" benefit.
It appears that according to their regulations this is true, I would just like to understand the logic , when the state pension is contribution based.
I would always(when able) look after my daughter, but the cost to the state would be considerable should I not be able to,

Regards,
Stuart

poppy12345

They are indeed over lapping benefits. While you won't receive the money for Carers allowance, you'll receive an underlying entitlement to it, which means it could increase any means tested benefits you will claim, or it may mean you'll become entitled to them. This link will fully explain it all for you.
https://www.carersuk.org/help-and-advice/financial-support/help-with-benefits/other-pension-age-benefits

Cheeky_Monkey

benstuart wrote: »

Hello,
I receive carers allowance for looking after my autistic daughter, and receive my state pension in three weeks.
I was surprised to receive a letter from the DWP informing me that I would no longer receive carers allowance when I receive my state pension as it is an "overlapping" benefit.
It appears that according to their regulations this is true, I would just like to understand the logic , when the state pension is contribution based.
I would always(when able) look after my daughter, but the cost to the state would be considerable should I not be able to,

Regards,
Stuart

Presumably, the 'logic' is that because carers allowance is paid in order to provide an income for people who are unable to work due to their caring responsibilities, once you reach State Pension age, you are no longer deemed to be a 'worker'.

calcotti

I think the logic is that Carer's Allowance is a payment to compensate you for time spent caring for someone which reduces your ability to earn by working (because you have less hours available for work). Once you reach pension age you are entitled to your pension which reduces your need for compensation because of reduced work opportunities. However, as poppy says, if you are on a low income then an entitlement to Carer's Allowance can mean that you are eligible for means tested benefits when you might otherwise not be.

xylophone

I should think the logic is that they are both "income replacement" benefits?

Carer Allowance replaces earnings for those not of State Pension Age.

State Pension replaces earnings for those who are?

benstuart

Many thanks for the clarification, I did not realise carers allowance was compensation for loss of working opportunity.I thought merely a recognition of the carers responsibilities.

calcotti

xylophone wrote: »

I should think the logic is that they are both "income replacement" benefits?

Carer Allowance replaces earnings for those not of State Pension Age.

State Pension replaces earnings for those who are?

The bit that blurs the boundary is that you can be entitled to Carer's Allowance above State Pension age even though you are not paid it (if your State Pension amount exceeds the Carer's Allowance amount) and if you have an entitlement it does give extra money in other benefits (Pension Credit, Housing Benefit and Council Tax Reduction).

metrobus

xylophone wrote: »

I should think the logic is that they are both "income replacement" benefits?

Carer Allowance replaces earnings for those not of State Pension Age.

State Pension replaces earnings for those who are?

State pension is not a benefit.

George Osbourne tried to make it one but was defeated.

It has not stopped the Government trying to regard it like one though.

xylophone

State pension is not a benefit.

Yes, it is, even though people don't like the idea.

https://www.telegraph.co.uk/finance/personalfinance/pensions/11194265/State-pension-is-not-a-benefit-says-minister.html

Mr Web told The Telegraph: “The law refers to the state pension as a benefit and has done since the war.

https://petition.parliament.uk/archived/petitions/121267

And it would be possible to qualify for the state pension with few or no contributions.

Consider a mother with several children born a few years apart - she might have married young and decided not to work outside the home after having a family. Receipt of CB would entitle her to NI credits for a number of years.

Consider a person who has never been able to work - NI credits.

Consider a person earning more than the Lower Earnings Limit but under the Primary Threshold - NI credits......

antrobus

metrobus wrote: »

State pension is not a benefit.

George Osbourne tried to make it one but was defeated.

It has not stopped the Government trying to regard it like one though.

Since it's the government that actually pays the state pension, I believe that their opinion matters a lot more than yours.:)

Legislation has determined that Carer's Allowance and the State Pension are 'overlapping benefits'. Case closed.

calcotti

In 2016 the state pension was 42% of the benefits bill https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/articles/howisthewelfarebudgetspent/2016-03-16