Carer’s Allowance is paid to the person who does the caring, not the person being cared for. However, if the person you are caring for receives certain benefits, the amount they receive may be affected by your claim for Carer’s Allowance. It is very important that both you and the person you are caring for will understand the possible consequences of your claim for Carer’s Allowance. It is important to seek advice from a welfare rights specialists from a local advice agency before you start claiming, therefore it will help you to understand the possible impact on your current benefits.
Carer’s allowance is considered as income if you are taking Universal Credit, therefore it is taxable and could affect other benefits you may be receiving. If you are already claiming State Pension or any other income replacing benefits, such as contributory or new style Employment and Support Allowance, unfortunately you will not be able to receive Carer’s Allowance.
It is possible that your Carer’s Allowance may affect the benefits of the person you are caring for. For example, if the person is claiming Severe Disability Premium, this may be discontinued as a result of your Carer’s Allowance. They will also stop receiving extra amount for severe disability paid with Pension Credit, as well as a reduced Council Tax.