Carers allowance earnings limit.

katiem188

Hello all! I am looking for a bit of advice and hopefully I have come to the right place.
i am due to start a part time job at the minimum wage of £8.91 for 12 hours per week, this totals £106.92 at week from earnings which takes me under the £128 threshold for carers allowance. 

due to the nature of my job I will sometimes be required to take up overtime, the monthly earnings for carers would be £512 (£128 x 4 to get this total.) Due to my earnings been £106.92 a week this takes my total for the month to £427.68 I have worked out I would be able to do an extra 9 hours a month at £8.91 and be within the limit for carers allowance, This is where I am confused.. if I did an extra 9 hours over time the first week and nothing for the remaining 3 weeks of the month as I am paid monthly would I still quality for carers allowance? As my total for that week would be £187.11 but provided I do no over time for the remaining 3 weeks I would still be under the £512 monthly limit, or do I have to even these out meaning I could only do an extra 2 hours per week for the £128 weekly limit? Any advice appreciated thank you. 

Rubyroobs

katiem188 said:

Hello all! I am looking for a bit of advice and hopefully I have come to the right place.
i am due to start a part time job at the minimum wage of £8.91 for 12 hours per week, this totals £106.92 at week from earnings which takes me under the £128 threshold for carers allowance. 

due to the nature of my job I will sometimes be required to take up overtime, the monthly earnings for carers would be £512 (£128 x 4 to get this total.) Due to my earnings been £106.92 a week this takes my total for the month to £427.68 I have worked out I would be able to do an extra 9 hours a month at £8.91 and be within the limit for carers allowance, This is where I am confused.. if I did an extra 9 hours over time the first week and nothing for the remaining 3 weeks of the month as I am paid monthly would I still quality for carers allowance? As my total for that week would be £187.11 but provided I do no over time for the remaining 3 weeks I would still be under the £512 monthly limit, or do I have to even these out meaning I could only do an extra 2 hours per week for the £128 weekly limit? Any advice appreciated thank you. 

It's not a case of multiplying by 4 though, there are more than 4 weeks in a month unless it's February. I believe carers allowance is not averaged though - if you earn over £128 in one week you will not be entitled to carers allowance for that week. If earnings are variable then I think you can let them know and they will look at eight week blocks and you can send in payslips so that you are not overpaid..

calcotti

Rubyroobs said: I believe carers allowance is not averaged though - if you earn over £128 in one week you will not be entitled to carers allowance for that week. If earnings are variable then I think you can let them know and they will look at eight week blocks and you can send in payslips so that you are not overpaid..

Where earnings fluctuate they can be averaged. See
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/893673/dmgch15.pdf
paragraph 15452 to 15456

Alice_Holt

If you wish to use averaging, then I would suggest you need to be proactive with the Carers Allowance Unit.
Write to them, detailing your weekly pay and explain which (and why) weeks should be averaged out. Keep a copy of the letter, keep all payslips, and document any phone calls with CA.
Be aware that even going a few pence over the earnings limit will cause CA to recover all CA paid for that week / period.

If you want to have a bit of a safety net, then consider joining your employers auto-enrolment pension scheme, since:
"Half of any contributions that you make into a work or personal pension can be taken as a deduction from your earnings to help you keep your Carer's Allowance (e.g. a £10 contribution into a pension each week would mean a £5 deduction from, say, £130 earnings – taking you to below the £128 threshold)."
   
https://www.litrg.org.uk/latest-news/news/180205-any-questions-carers-allowance-–-can-making-pension-contributions-help-you#:~:text=Half of any contributions that,below the £116 threshold).

Sallyp2

You can earn over £128 per week and still get CAllowance. You can claim expenses, so if you work 12 extra hours one week you can say you had to pay a relative to help care while you worked those hours. 
Dont make it a regular thing. I've done a handful of times, but it does get flagged with DWP, so you need to be on point with expenses. 

sheramber

Are you encouraging the OP to commit fraud?

calcotti

One point to note is that the earnings taken into account for Carer's Allowance do not necessarily correspond to the earnings you receive. For CA deductions are made for income tax, national insurance and half of any pension contributions. If, therefore you receive £126 from work but this has included a deduction of £5 as a pension contribution then for CA purposes your earnings are £128.50 which s over the limit.

Re averaging of earnings, I note 
https://www.gov.uk/carers-allowance/eligibility

If your earnings are sometimes more than £128 a week you might still be eligible for Carer’s Allowance. Your average earnings may be calculated to work out if you’re eligible.

Re the costs of childcare be allowed as a deduction

Sallyp2 said:..you can say you had to pay a relative to help care while you worked those hours. ..

Payments to a close relative are not, as I read it, allowable as an expense.

See https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/893673/dmgch15.pdf

paragraphs 15803 and following, particularly 15815 (and there are some specific additional restrictions in Scotland, if relevant).

15815 For the charges to be deductible the care must not be provided by a close relative of either the severely disabled person or the claimant. In this context “close relative” means parent, son, daughter, brother, sister or partner.