Effect of work and pension on UC and Carer’s

Divorcedwith3

Wondering if anyone can help? I currently receive UC and Carers Allowance as I have two children who are disabled. I gave up work a few years ago to care for them. 

I really want to get back to work/re-educate myself so I can re-enter employment. Due to caring responsibilities I can’t work full-time but could have the option of part-time work however this I think will have an effect on UC and carers. The jobs have to be a certain contract (usually 10 or 12 hrs) but I think they will bring me over the limit (£132 a week ?) that I can earn without losing carers allowance. I’m stuck because I can’t afford to lose £300 a month but can’t work the hours to make it up due to caring responsibilities. 

The amount that I can earn I read is after pensions (50% of income over £132 can be put in pension from what I’ve read). 

Is this correct- I think based on my figures I would be getting about £150-180 a week so about £30-50 above the £132 allowed to be earned. I thought if I was able to put this amount into a pension then this would reduce my income and allow me to work gain experience and increase my employability and also mean I can still claim carers allowance. 

Has anyone done similar or know of another way to work, fulfil caring responsibilities and not lose significant money in benefits. 

poppy12345

As you're claiming UC and carers allowance there's no financial gain to claiming both together. The carers allowance is just deducted in full from any UC entitlement.

Your UC should include the carers element as well (unless your UC includes the LCWRA element for youtself) and there's no earnings limit to this. If you cancel the carers allowance there's no financial loss and then you won't have to worry about the earnings limit.

You will also have the work allowance because you have children on your claim. This means you can receive earnings of up to £573/month if you don't claim for help with any rent before the 55% deductions apply. If you do claim for help with the rent then it will be £344/month. https://www.gov.uk/government/publications/universal-credit-work-allowances/universal-credit-work-allowances

Use benefits calculator and put in different figures to see what it comes out with. https://www.entitledto.co.uk/benefits-calculator/Intro/Home?cid=bda61d42-af2e-4f25-87cd-23e0f4bcce36

Divorcedwith3

But don’t I receive Carers credit to National Insurance for state pension when claiming Carers? That’s why I kept it on. 

Thank you for your advice - I am still finding my way round this v complicated system! 

poppy12345

Divorcedwith3 said:

But don’t I receive Carers credit to National Insurance for state pension when claiming Carers?

That's not correct. When claiming UC you receive class 3 NI credits towards your state pension. When claiming carers allowance you receive class 1 NI credits.

If you're going to be working and risk going over your weekly earnings limit it will be much easier to stop carers allowance.

calcotti

Remember too that if you will be earning from employment and meaning more than £123/week you will be receiving Class 1 contributions added to your NI record anyway. These will be NI contributions rather than NI credits even though you don’t actually pay NI contributions until you earn £242/week.