Carers allowance, uc and benefit cap

rachy185

Hi
This may be a pretty lengthy post but I'm now to all this. I've been caring for my grandparent since end of march, I've recently learnt that I could apply for carers allowance which I did the other day and asked to be backdated to 3months. I'm on uc and have a benefit cap of £433 per month. I've been reading about the carers allowance being taken off each month but then read that being awarded carers allowance it would make me exempt from the benefit cap too. I havent made a claim for carers element yet as I really dont understand it and dont know if I have to wait till the carers allowance award first, I have left a message on my journal regarding this. My question is when and if I receive the award and backdate I understand uc will take this lump sum off my award but then wont the benefit cap be taken off the previous 3months statement too? If so that would mean they would actually owe me (£433 benefit cap-£291 c/a) I'm just unsure how it all works and just wondering if anyone has been in the same boat. Thankyou in advance 

rachy185

Typo error on the first line *new

poppy12345

rachy185 said:

Hi
This may be a pretty lengthy post but I'm now to all this. I've been caring for my grandparent since end of march, I've recently learnt that I could apply for carers allowance which I did the other day and asked to be backdated to 3months. I'm on uc and have a benefit cap of £433 per month. I've been reading about the carers allowance being taken off each month but then read that being awarded carers allowance it would make me exempt from the benefit cap too. I havent made a claim for carers element yet as I really dont understand it and dont know if I have to wait till the carers allowance award first, I have left a message on my journal regarding this. My question is when and if I receive the award and backdate I understand uc will take this lump sum off my award but then wont the benefit cap be taken off the previous 3months statement too? If so that would mean they would actually owe me (£433 benefit cap-£291 c/a) I'm just unsure how it all works and just wondering if anyone has been in the same boat. Thankyou in advance 

Before you claimed the carers allowance, i hope you checked that this won't affect any benefits that your grandparent may have been claiming. If they were claiming the Severe disability premium in another benefit then this will now stop, which could affect other benefits they may already be claiming.

You need to report the changes on your journal and ask for the carers element to be added to your claim. It's not that easy to get this backdated unless you reported being a carer previously.

Once you receive the backdated money for the carers allowance, you'll then have an overpayment for your UC which will need to be repaid backdack from future UC payments, they won't take the whole amount in one payment. Anything that you're owed because of the benefit cap will either be paid to you as a lump sum or they will take that as payment towards the overpayment.

For future reference, you don't need to claim carers allowance when claiming UC because the carers element can be paid without claiming CA. Although CA pays class 1 NI credits and UC pays class 3.

rachy185

poppy12345 said:

rachy185 said:

Hi
This may be a pretty lengthy post but I'm now to all this. I've been caring for my grandparent since end of march, I've recently learnt that I could apply for carers allowance which I did the other day and asked to be backdated to 3months. I'm on uc and have a benefit cap of £433 per month. I've been reading about the carers allowance being taken off each month but then read that being awarded carers allowance it would make me exempt from the benefit cap too. I havent made a claim for carers element yet as I really dont understand it and dont know if I have to wait till the carers allowance award first, I have left a message on my journal regarding this. My question is when and if I receive the award and backdate I understand uc will take this lump sum off my award but then wont the benefit cap be taken off the previous 3months statement too? If so that would mean they would actually owe me (£433 benefit cap-£291 c/a) I'm just unsure how it all works and just wondering if anyone has been in the same boat. Thankyou in advance 

Before you claimed the carers allowance, i hope you checked that this won't affect any benefits that your grandparent may have been claiming. If they were claiming the Severe disability premium in another benefit then this will now stop, which could affect other benefits they may already be claiming.

You need to report the changes on your journal and ask for the carers element to be added to your claim. It's not that easy to get this backdated unless you reported being a carer previously.

Once you receive the backdated money for the carers allowance, you'll then have an overpayment for your UC which will need to be repaid backdack from future UC payments, they won't take the whole amount in one payment. Anything that you're owed because of the benefit cap will either be paid to you as a lump sum or they will take that as payment towards the overpayment.

For future reference, you don't need to claim carers allowance when claiming UC because the carers element can be paid without claiming CA. Although CA pays class 1 NI credits and UC pays class 3.

Thank you for the reply. Luckily enough I did check with my gran regarding the severe disability and pension credits as an advisor on the phone had alerted me about this but she doesnt have them. She is on dla on the highest rate and doesnt receive pension credits. I've put a journal on so I hope for a reply on monday. I'm just worried about the back pay but as I said with the benefit cap then technically they would owe me the money even with taking the lump sum of c/a off, I've not seen anything online regarding this so I dont know if its possible. I don't mind if they take the full payment as I'll save the back pay towards the rest of uc anyway, thankyou again 

calcotti

poppy12345 said: For future reference, you don't need to claim carers allowance when claiming UC because the carers element can be paid without claiming CA. Although CA pays class 1 NI credits and UC pays class 3. 

For the avoidance of doubt, being in receipt of the carer element of UC is also sufficient to create an exemption from the benefit cap without having to claim Carer’s Allowance.
https://www.gov.uk/benefit-cap/when-youre-not-affected

You’re not affected by the cap if you or your partner:...

• get Universal Credit because you care for someone with a disability

OP, you will struggle to get the carer element of UC backdated if you have never previously informed UC that you are a carer. You should tell them as soon as possible and also tell them that you have applied for CA.

Poppy’s point about possible impact on your grandparent’s income is an important one and you really need to check this. This will only be applicable if they live alone and claim a means tested benefit.

rachy185

calcotti said:

poppy12345 said: For future reference, you don't need to claim carers allowance when claiming UC because the carers element can be paid without claiming CA. Although CA pays class 1 NI credits and UC pays class 3. 

For the avoidance of doubt, being in receipt of the carer element of UC is also sufficient to create an exemption from the benefit cap without having to claim Carer’s Allowance.
OP, you will struggle to get the carer element of UC backdated if you have never previously informed UC that you are a carer. You should tell them as soon as possible and also tell them that you have applied for CA.

Poppy’s point about possible impact on your grandparent’s income is an important one and you really need to check this. 

Thank you for your reply, I never knew carers element would exempt benefit cap too so that's good information, I have written a journal just awaiting an apply. I've checked with my gran and she doesnt receive disability premium nor pension credits, it was my gran who alerted me about carers allowance otherwise I'd be non the wiser but yes definitely checked that she isnt on them, is there anything else that could be affected I'm only aware of disability premium and pension credits which neither she has? 

poppy12345

rachy185 said:

calcotti said:

poppy12345 said: For future reference, you don't need to claim carers allowance when claiming UC because the carers element can be paid without claiming CA. Although CA pays class 1 NI credits and UC pays class 3. 

For the avoidance of doubt, being in receipt of the carer element of UC is also sufficient to create an exemption from the benefit cap without having to claim Carer’s Allowance.
OP, you will struggle to get the carer element of UC backdated if you have never previously informed UC that you are a carer. You should tell them as soon as possible and also tell them that you have applied for CA.

Poppy’s point about possible impact on your grandparent’s income is an important one and you really need to check this. 

  is there anything else that could be affected I'm only aware of disability premium and pension credits which neither she has? 

Nothing else would be affected. Although if she's living alone, or classed as living alone then she may have been entitled to the SDP.

calcotti

So when this is sorted you will see an extra amount in the UC calculation of the carer element which will increase the maximum UC amount payable by £162.92/month and there will be no deduction for the benefit cap. There will be a deduction from the UC of £291.42/month for the CA. If the benefit cap has been £433 you should therefore see an overall increase of £595.92/month.

rachy185

calcotti said:

So when this is sorted you will see an extra amount in the UC calculation of the carer element which will increase the maximum UC amount payable by £162.92/month and there will be no deduction for the benefit cap. There will be a deduction from the UC of £291.42/month for the CA. If the benefit cap has been £433 you should therefore see an overall increase of £595.92/month.

Thankyou for the reply, I cant see anywhere regarding the benefit cap and carers element but that would be helpful if that's the case. Does it take ages for carers element to be awarded as I cant see a time limit with this? 

poppy12345

It should be added for your next payment. Although as has been advised, backdating the carers element may not be that easy.

rachy185

poppy12345 said:

It should be added for your next payment. Although as has been advised, backdating the carers element may not be that easy.

That's great I found a section on the journal where I can declare so will go ahead today, I'm still in the assessment period until the 7th November so hopefully is added by then. Thankyou for clarifying