remains the essential benefits - CPAG · 2019. 2. 11. · annually updated Handbook is the deﬁnitive guide to ... Chapter33 Contribution-basedjobseeker’sallowance 718 Chapter34

CMYK

9 781906 076733

ISBN 978-1-906076-73-3

“Written withunsurpassed clarity …essential” Family Law

“The advisers’ bibleremains the key text inthe welfare benefitsfield… CPAG’s bookremains the essentialpurchase for anyoneoffering advice on social security”The Adviser

“The best value inpublishing... Thereference manual ofchoice for professionaladvisers” Solicitors Journal

“Simply the best andmost vital guide… thatyou can buy” Community Care

“So easy to follow... agodsend. Many of uswould be lost without it”A claimant

Written for claimants and their advisers, CPAG’sannually updated Handbook is the definitive guide toall welfare benefits and tax credits.

This edition gives comprehensive advice aboutentitlement in 2013/14, and helps you understand thesweeping changes taking place in the benefits and taxcredits system over the next few years. It includesextensive information on universal credit, including howto calculate income and capital, housing costs and themaximum amount, and personal independencepayment. Also included this year are full details on thenew benefit cap and rent restrictions, improvedinformation on claiming and getting paid, and moretactical information to help users navigate thecomplexities of the system and enforce their rights.

The book is fully indexed and cross-referenced to law,regulations and official guidance, and to court, UpperTribunal and commissioners’ decisions. It is supplied toall Citizens Advice Bureaux, and is used by advisers,local authority staff, lawyers and administrators, as well as claimants.

2013/2014Which benefits and tax credits can you claim?

How and when will the new universal credit affect you?

Which work-related requirements must you meet,and what happens to your benefit if you do notcomply?

How is your disability or health assessed foremployment and support allowance and the newpersonal independence payment?

When are your benefits restricted by the newbenefit cap or by the ‘bedroom tax’?

How do you challenge a decision, and what can youdo if you have been overpaid or accused of fraud?

2013

/2014

Welfarebenefitsand tax credits

HANDBOOK

Welfa

re benefits a

nd ta

x credits h

andbook

£45.00

*** PRESS PDF Created on UBUNTU3 at 5 Apr 2013 at 10:13:21 ***

Welfare Benefits andTax Credits Handbook.............................................................

15th edition

Child Poverty Action Group


CPAG promotes action for the prevention and relief of poverty among children andfamilies with children. To achieve this, CPAG aims to raise awareness of the causes,extent, nature and impact of poverty, and strategies for its eradication andprevention; bring about positive policy changes for families with children inpoverty; and enable those eligible for income maintenance to have access to theirfull entitlement. If you are not already supporting us, please consider making adonation, or ask for details of our membership schemes, training courses andpublications.

Published by Child Poverty Action Group94 White Lion StreetLondon N1 9PFTel: 020 7837 [email protected]

© Child Poverty Action Group 2013

This book is sold subject to the condition that it shall not, by way of trade or otherwise, belent, resold, hired out or otherwise circulated without the publisher’s prior consent in anyform of binding or cover other than that in which it is published and without a similarcondition including this condition being imposed on the subsequent purchaser.

A CIP record for this book is available from the British LibraryISBN: 978 1 906076 73 3

Child Poverty Action Group is a charity registered in EnglandandWales (registrationnumber 294841) and in Scotland (registration number SC039339), and is a companylimited by guarantee, registered in England (registration number 1993854). VATnumber: 690 808117

Cover design by Devious DesignsTypeset by David Lewis XML Associates LtdContent management system by Konnect Soft www.konnectsoft.comPrinted by CPI Group (UK) Ltd, Croydon CR0 4YY


..........................................................

....iii

The authors

Barbara Donegan is a freelance trainer and writer on welfare rights.

Carolyn George is a freelance trainer and writer on welfare rights.

Alison Gilles is a welfare rights worker at CPAG in Scotland.

Will Hadwen is a freelance consultant and trainer on welfare rights and relatedareas. She currently works as a benefits adviser for the charity Working Families.

Daphne Hall is a part-time welfare rights adviser at Bristol City Council, and afreelance trainer and writer on welfare rights.

Henri Krishna is a welfare rights worker at CPAG in Scotland.

Susan Mitchell is a freelance writer on welfare rights.

Paul Moorhouse is a part-time welfare rights worker for Central and SouthSussexCAB, and a freelance trainer and writer.

Simon Osborne is a welfare rights worker at CPAG, based at CPAG in Scotland.

Judith Paterson is CPAG in Scotland’s welfare rights co-ordinator.

Jon Shaw is a welfare rights worker at CPAG in Scotland.

Angela Toal is a welfare rights worker at CPAG in Scotland.

Paula Twigg is the Advice Services Director at Mary Ward Legal Centre.

Rebecca Walker is a freelance trainer and writer on welfare rights.

Martin Williams is a welfare rights worker at CPAG.

Mark Willis is a welfare rights worker at CPAG in Scotland.


..........................................................

....iv

Acknowledgements

The authors would like to thank Mark Brough, Sarah Clarke, Liz Dawson, EdwardGraham, Barbara Gray, David Malcolm, Kelly Smith and, in particular, ArnieJames, for their invaluable contribution to this year’s book.

Our thanks are also due to Simon Osborne for acting as the book’s contentconsultant.

We must acknowledge the efforts of the many authors of previous editions ofthe National Welfare Benefits Handbook, the Rights Guide to Non-Means-TestedBenefits and the Jobseeker’s Allowance Handbook, on which this book is based. Weare especially grateful to Carolyn George and Susan Mitchell, withoutwhosehardwork and commitment this year’s edition would not have been possible.

Thanks are also due to Nicola Johnston and Alison Key for once again editingand managing the production of the book so efficiently, and to KathleenArmstrong, Anne Ketley and Paula McDiarmid for proofreading the text.Particular thanks are due to Katherine Dawson for producing the index.

We would also like to thank staff at the Department for Work and Pensions,the Child Support Agency, HM Customs and Revenue, HM Courts and TribunalsService and the Department for Education for their help and co-operation.

Thanks to the staff at KonnectSoft, David Lewis XML Associates and CPIWilliam Clowes for keeping up with our schedules.

The law covered in this book was correct on 1 March 2013 and includesregulations laid up to this date.


..........................................................

....v

Contents

Abbreviations xMeans-tested benefit rates xiNon-means-tested benefit rates xvTax credit rates xviii.................................................................................................................................................

Part 1 Introduction

Provides an overview of the benefits and tax credits system andexplains how to use this book to find the information you need.Use this part to identify which benefits, tax credits or statutorypayments you can get and the amount you should receive, and tounderstand how to use the book to find answers to specific questionsabout your entitlement.

Chapter 1 How to use this book 3.................................................................................................................................................

Part 2 Main means-tested benefits and tax credits

Contains chapters on all the main means-tested benefits and taxcredits. Use this part if you are on a low income to check whether youqualify for means-tested benefits or tax credits, and to understandhow you will be affected by the introduction of universal credit.

Chapter 2 Introduction of universal credit 17Chapter 3 Universal credit 23Chapter 4 Income support 44Chapter 5 Income-based jobseeker’s allowance 65Chapter 6 Income-related employment and support allowance 87Chapter 7 Pension credit 100Chapter 8 Housing benefit 119Chapter 9 Child tax credit 174Chapter 10 Working tax credit 188

1 1

2 2


Contents..........................................................

....vi

.................................................................................................................................................

Part 3 General rules for means-tested benefits

Provides information on who can be included in your means-testedbenefit claim, and gives details on how your needs, income andcapital are calculated. Use this part to check whether you qualify andto work out how much benefit you will get.

Chapter 11 People included in the claim 209Chapter 12 Universal credit maximum amount 224Chapter 13 Applicable amounts 232Chapter 14 Income: universal credit 264Chapter 15 Income: under pension credit age 282Chapter 16 Income: over pension credit age 331Chapter 17 Capital: under pension credit age 352Chapter 18 Capital: over pension credit age 385.................................................................................................................................................

Part 4 Paying for housing

Explains the help you can get in some means-tested benefits forcertain housing costs, such as mortgage interest or, if you getuniversal credit, rent. Use this part to check whether you are entitled tohelp, to understand the rules on when this is restricted, and to checkwhether you can get discretionary housing payments.

Chapter 19 Universal credit housing costs 401Chapter 20 Rent restrictions 434Chapter 21 Housing costs 467Chapter 22 Discretionary housing payments 507.................................................................................................................................................

Part 5 Other benefits

Contains chapters on other benefits, statutory payments andadditional help you may be able to get. Use this part to check thequalifying conditions and other rules for these benefits and payments,and to check the amount to which you are entitled.

Chapter 23 Attendance allowance 515Chapter 24 Bereavement benefits 527Chapter 25 Carer’s allowance 549Chapter 26 Child benefit 562Chapter 27 Disability living allowance 587Chapter 28 Contributory employment and support allowance 629Chapter 29 Guardian’s allowance 649Chapter 30 Health benefits 659Chapter 31 Incapacity benefit and severe disablement allowance 673

3 3

4 4

5 5


Contents..........................................................

....vii

Chapter 32 Industrial injuries benefits 692Chapter 33 Contribution-based jobseeker’s allowance 718Chapter 34 Local authority payments 740Chapter 35 Maternity allowance 746Chapter 36 Personal independence payment 758Chapter 37 Retirement pensions 778Chapter 38 Social fund budgeting loans 799Chapter 39 Social fund regulated payments 807Chapter 40 Statutory maternity, paternity and adoption pay 820Chapter 41 Statutory sick pay 848Chapter 42 Other payments 864.................................................................................................................................................

Part 6 General rules for other benefits

Outlines the national insurance contribution conditions forcontributory benefits, and explains when you may qualify for nationalinsurance credits and the rules on earnings for certain non-means-tested benefits. Use this part to check whether you qualify forcontributory benefits and to understand how your earnings mayaffect your entitlement to non-means-tested benefits.

Chapter 43 National insurance contributions 875Chapter 44 Earnings 904.................................................................................................................................................

Part 7 Special benefit rules

Explains how particular circumstances, such as going into hospital,affect your entitlement to benefits and statutory payments. Use thispart if any of the circumstances apply to you.

Chapter 45 Benefits for 16/17-year-olds 917Chapter 46 Benefits for students 936Chapter 47 Benefits in hospital, prison and other special circumstances 976.................................................................................................................................................

Part 8 Work

Explains how work affects your entitlement to benefits and the ruleson whether you have limited capability for work. Use this part to findout what you must do to prepare for and find work, and what mayhappen if you do not do so.

Chapter 48 Work and benefits 1023Chapter 49 Limited capability for work 1039Chapter 50 Claimant responsibilities 1062Chapter 51 Jobseeking and other conditions 1091Chapter 52 Sanctions 1126

6 6

7 7

8 8


Contents..........................................................

....viii

.................................................................................................................................................

Part 9 Claiming benefits and getting paid

Explains how to claim benefits and how you are paid. Use this part tocheck whether you are affected by the benefit cap or qualify for ahardship payment, for how to get your claim backdated, to reportchanges in your circumstances, and for what to do if you have beenoverpaid or accused of fraud.

Chapter 53 Claims and decisions 1175Chapter 54 Getting paid 1202Chapter 55 Hardship payments 1243Chapter 56 Overpayments 1256Chapter 57 Fraud and penalties 1293.................................................................................................................................................

Part 10 Getting a benefit decision changed

Covers the different ways to challenge decisions, including appealing.Use this part if you are unhappy with a decision and want to knowyour rights and how to enforce them.

Chapter 58 Revisions and supersessions 1311Chapter 59 Appeals 1348Chapter 60 Challenging decisions on statutory payments 1417Chapter 61 Complaints 1428Chapter 62 Discrimination and human rights 1437.................................................................................................................................................

Part 11 General rules for tax credits

Covers the general rules that apply to tax credits. Use this part tocalculate the amount you should receive, and for information on howto claim tax credits, when you are paid and on challenging decisions.

Chapter 63 Tax credit amounts 1445Chapter 64 Income: tax credits 1464Chapter 65 Claims, decisions and getting paid: tax credits 1483Chapter 66 Overpayments of tax credits 1507Chapter 67 Investigations, penalties and fraud: tax credits 1519Chapter 68 Revisions and appeals: tax credits 1530

9 9

10 10

11 11


Contents..........................................................

....ix

.................................................................................................................................................

Part 12 Immigration and residence rules for benefits and tax credits

Explains how your immigration status affects your benefit and taxcredit entitlement and how the benefits and tax credits you get areaffected if you go abroad. Use this part if you have come from abroador are considering going abroad to check your entitlement.

Chapter 69 Coming from abroad: immigration status 1545Chapter 70 Coming from abroad: residence rules 1563Chapter 71 Going abroad 1617Chapter 72 European Union co-ordination rules 1641.................................................................................................................................................

AppendicesAppendix 1 Useful addresses 1659Appendix 2 Information and advice 1664Appendix 3 Useful publications 1666Appendix 4 Statutory maternity pay, statutory paternity pay (birth) and

maternity allowance 1671Appendix 5 Pension age for women born between 6 April 1950

and 5 December 1953 1675Appendix 6 Prescribed degrees of disablement 1677Appendix 7 Prescribed industrial diseases 1679Appendix 8 Upper and lower earnings limits 1692Appendix 9 Disability which puts a person at a disadvantage in getting a job 1693Appendix 9 Disability which puts a person at a disadvantage in getting a job 1693Appendix 10 Limited capability for work assessment 1695Appendix 11 Limited capability for work-related activity assessment 1701Appendix 12 Minimum working conditions 1704Appendix 13 Personal independence payment assessment 1705Appendix 14 Abbreviations used in the notes 1712.................................................................................................................................................

Index 1725

12 12

A A

I I


..........................................................

....x

Abbreviations

AA attendance allowance HMRC HM Revenue and Customs

CA carer’s allowance IB incapacity benefit

CAB Citizens Advice Bureau ICA invalid care allowance

CCLT complaint, correspondence and

litigation team

ICE

IIDB

Independent Case Examiner

industrial injuries disablement benefit

CJD Creutzfeldt-Jacob disease IS income support

CJEU Court of Justice of the European Union JSA jobseeker’s allowance

CMS child maintenance service MA maternity allowance

CPI Consumer Prices Index MS Medical Service

CRU Compensation Recovery Unit NI national insurance

CSA Child Support Agency NICO National Insurance Contributions Office

CTB council tax benefit PAYE Pay As You Earn

CTC child tax credit PC pension credit

DLA disability living allowance PIP personal independence payment

DRO debt relief order REA reduced earnings allowance

DWP Department for Work and Pensions SAAS Student Awards Agency for Scotland

EC European Community SAP statutory adoption pay

ECJ European Court of Justice SDA severe disablement allowance

ECtHR European Court of Human Rights SLC Student Loan Company

EEA European Economic Area SMP statutory maternity pay

EO employment officer SPP statutory paternity pay

ESA employment and support allowance SSP statutory sick pay

EU European Union TCO Tax Credit Office

EWC expected week of childbirth UC universal credit

HB housing benefit VAT vvalue added tax

HMCTS HM Courts and Tribunals Service WTC working tax credit


..........................................................

....xi

Means-tested benefit rates

Universal creditStandard allowance £pwSingle Under 25 246.81

25 or over 311.55Couple Both under 25 387.42

One or both 25 or over 489.06

ElementsFirst child 272.08Second and eachsubsequent child

226.67

Disabled child addition Lower rate 123.62Higher rate 352.92

Limited capability for work 123.62Limited capability for work and work-related activity 303.66Carer 144.70Childcare costs One child up to 532.29

Two or more children up to 912.50Percentage of childcare costs covered 70%

Capital limits Lower Upper6,000 16,000

Tariff income £4.35 per £250 between lower and upper limits

Income support/income-based jobseeker’s allowancePersonal allowancesSingle Under 25 56.80

25 or over 71.70Lone parent Under 18 56.80

18 or over 71.70Couple Both under 18 56.80

Both under 18, certain cases 85.80One under 18, one 18–24 56.80One under 18, one 25 or over 71.70One under 18, certain cases 112.55Both 18 or over 112.55

PremiumsCarer 33.30Disability Single 31.00

Couple 44.20


Means-tested benefit rates..........................................................

....xii

Enhanced disability Single 15.15Couple 21.75

Severe disability One qualifies 59.50Two qualify 119.00

Pensioner Single (jobseeker’s allowance only) 73.70Couple 109.50

Children (Pre-6 April 2004 claims with no child tax credit)Child under 20 personal allowance 65.62Family premium 17.40Disabled child premium 57.89Enhanced disability premium (child) 23.45

Capital limits Lower UpperStandard 6,000 16,000Care homes 10,000 16,000Tariff income £1 per £250 between lower and upper limit

Pension creditGuarantee creditStandard minimum guarantee Single 145.40

Couple 222.05Severe disability addition One qualifies 59.50

Two qualify 119.00Carer addition 33.30

Savings creditThreshold Single 115.30

Couple 183.90Maximum Single 18.06

Couple 22.89

Capital disregardStandard/care homes 10,000No upper limitDeemed income £1 per £500 above disregard

Income-related employment and support allowance

Personal allowances Assessment phase Main phaseSingle Under 25 56.80 71.70

25 or over 71.70 71.70Lone parent Under 18 56.80 71.70

18 or over 71.70 71.70Couple Both under 18 (max) 85.80 112.55

Both 18 or over 112.55 112.55



....xiii

Assessment phase Main phaseComponentsWork-related activity – 28.45Support – 34.80

PremiumsCarer 33.30 33.30Severe disability (one qualifies) 59.50 59.50Severe disability premium (two qualify) 119.00 119.00Enhanced disability Single 15.15 15.15

Couple 21.75 21.75Pensioner Single, no component 73.70 –

Couple, no component 109.50 –Single, work-relatedactivity component

– 45.25

Couple, work-relatedactivity component

– 81.05

Single, support component – 38.90Couple, support component – 74.70

Capital limitsAs for income support

Housing benefitPersonal allowancesSingle Under 25 56.80

Under 25 (on main phase ESA) 71.7025 or over 71.70

Lone parent Under 18 56.80Under 18 (on main phase ESA) 71.7018 or over 71.70

Couple Both under 18 85.80Both under 18 (claimant onmain phase ESA)

112.55

One or both 18 or over 112.55Dependent children Under 20 65.62Over qualifying age for pensioncredit

Single under 65Single 65 or over

145.40163.50

Couple both under 65 222.05Couple one or both 65 or over 244.95

ComponentsWork-related activity 28.45Support 34.80



....xiv

PremiumsCarer 33.30Disability Single 31.00

Couple 44.20Disabled child 57.89Enhanced disability Single 15.15

Couple 21.75Child 23.45

Severe disability One qualifies 59.50Two qualify 119.00

Family Ordinary rate 17.40Some lone parents 22.20

Capital limits Lower UpperStandard 6,000 16,000Care home or over pension credit qualifying age 10,000 16,000Tariff income £1 per £250 between lower and upper limit£1 per £500 for those over qualifying age for pension creditNo upper limit or tariff income for those on pension credit guarantee credit

Social fund paymentsMaternity grant 500.00Cold weather payment 25.00Winter fuel payment Under 80 200.00(over qualifying age for 80 or over 300.00pension credit) Care home (under 80) 100.00

Care home (80 or over) 150.00


..........................................................

....xv

Non-means-tested benefitrates

£pwAttendance allowanceHigher rate 79.15Lower rate 53.00

Bereavement benefitsBereavement payment (lump sum) 2,000Bereavement allowance/widow’s pension (55 or over) 108.30Bereavement allowance/widow’s pension (45–54) 32.49–100.72Widowed parent’s allowance/widowed mother’s allowance 108.30

Carer’s allowance 59.75Adult dependant (some existing claimants only) 35.15

Child benefitOnly/eldest child 20.30Other child(ren) 13.40

Increase for child (some existing claimants only)Only/eldest child 8.10Other child(ren) 11.35Weekly earnings limits (partner’s earnings only)Only/eldest child 220.00Other child(ren) 29.00

Disability living allowanceCare componentHighest rate 79.15Middle rate 53.00Lowest rate 21.00

Mobility componentHigher rate 55.25Lower rate 21.00


Non-means-tested benefit rates..........................................................

....xvi

Contributory employment and support allowanceAssessment phaseUnder 25 56.8025 or over 71.70

Main phase16 or over 71.70Work-related activity component 28.45Support component 34.80

Guardian’s allowance 15.90

Short-term incapacity benefitUnder pension ageLower rate 76.45Higher rate 90.50Adult dependant 45.85

Over pension ageLower rate 97.25Higher rate 101.35Adult dependant 56.65

Long-term incapacity benefit 101.35Age addition (under 35) 10.70Age addition (35–44) 6.00Adult dependant 58.85

Industrial injuries disablement benefit 20%: £32.32, to 100%: £161.60

Contribution-based jobseeker’s allowanceUnder 25 56.8025 or over 71.70

Maternity allowanceStandard rate 136.78

Personal independence paymentDaily living componentStandard rate 53.00Enhanced rate 79.15

Mobility componentStandard rate 21.00Enhanced rate 55.25

Retirement pensionCategory A 110.15Adult dependant (some existing claimants only) 63.20


Non-means-tested benefit rates..........................................................

....xvii

Category B (widow(er)/surviving civil partner) 110.15Category B (spouse/civil partner) 66.00Category D 66.00

Severe disablement allowance 71.80Age addition (under 40) 10.70Age addition (40–49) 6.00Age addition (50–59) 6.00Adult dependant 35.35

Statutory maternity, paternity and adoption payStandard rate 136.78

Statutory sick pay 86.70

National insurance contributionsLower earnings limit 109.00Primary threshold 149.00Employee’s Class 1 rate 12% of £149 to £797

2% above £797Class 2 rate (self-employed) 2.70


..........................................................

....xviii

Tax credit rates

£ per day £ per yearChild tax creditFamily element 1.50 545Child element 7.46 2,720Disabled child element 8.26 3,015Severely disabled child element 3.34 1,220

Working tax creditBasic element 5.27 1,920Couple element 5.40 1,970Lone parent element 5.40 1,97030-hour element 2.17 790Disabled worker element 7.83 2,855Severe disability element 3.35 1,220Childcare element 70% of eligible weekly childcare costs :

One child weekly maximum 175Two or more children weekly maximum 300

ThresholdsIncome threshold Working tax credit only

or with child tax credit6,420

Child tax credit only 15,910Taper 41%Income decrease disregard 2,500Income increase disregard 5,000


....549

5

Chapter 25..........................................................Carer’s allowance

This chapter covers:1. Who can claim carer’s allowance (below)2. The rules about your age (p551)3. People included in the claim (p552)4. The amount of benefit (p553)5. Special benefit rules (p554)6. Claims and backdating (p554)7. Getting paid (p557)8. Tax, other benefits and the benefit cap (p558)

Key facts● Carer’s allowance (CA) is paid to people who care for someone who is severely

disabled.● CA is a non-means-tested benefit.● You do not have to have paid national insurance contributions to qualify.● You can qualify for CA whether you are in or out of work, but you must not

earn more than £100 in a week.● CA can be paid in addition to other benefits andtaxcredits,buttheoverlapping

benefit rules may apply. CA counts as income for means-tested benefits.● A ‘benefit cap’ may be applied if the total amount of certain benefits you

receive (including CA) exceeds a specified amount.● CA is administered and paid by the DWP’s Carer’s Allowance Unit.● If you disagree with a CA decision, you can apply for a revision or a

supersession, or appeal against it (see Chapters 58 and 59). From October 2013,you may have to seek a revision before you can appeal.

1. Who can claim carer’s allowance

You qualify for carer’s allowance (CA) if:1● you are caring for a ‘severely disabled person’ (see below for the meaning). You

do not have to be the person’s relative, nor do you have to live with her/him;● the care you give is regular and substantial (see p550);


Part 5: Other benefitsChapter 25: Carer’s allowance1. Who can claim carer’s allowance..........................................................

Part 5: OtheChapter 25:1. Who can c.........

....550

5

● you are not gainfully employed (see p551 for what counts);● you are not in full-time education (see p957 for what counts);● you are aged 16 or over;● you satisfy the residence conditions (see p1573);● you are not a ‘person subject to immigration control’ (see p1546).2

................................................Who counts as a severely disabled person?In this chapter, when we refer to a ‘severely disabled person’ we mean a person to whom

either attendance allowance (AA), the highest or middle rate of disability living allowance

(DLA) care component, either rate of the daily livingcomponentofpersonal independence

payment (PIP) or constant attendance allowance in respect of an industrial or war

disablement (see p706) is payable.3 The government intends that armed forces

independence payment will also be a qualifying benefit.

................................................Note:4● Only one person can qualify for CA for caring for the same disabled person. If

you cannot agree on who this should be, the DWP decides.● Even if you care for two or more disabled people, you can only qualify for one

award of CA.

Regularly and substantially caring

To qualify for CA you must be engaged in ‘regularly and substantially’ caring foraseverely disabled person. You satisfy this requirement during any week in whichyou are (or are likely to be) engaged and regularly engaged in caring for her/himfor 35 hours or more.5 For CA, a week runs from Sunday to Saturday.6 Caring caninclude supervision as well as assistance. If some of the time is spent preparing forthe disabled person to come to stay with you or clearing up after her/his visit, thiscan also count towards the 35 hours.7

Note:● You cannot average the hours in one week with those in another – eg, if you

care 35 hours or more in some weeks and less than 35 in others.8 You must carefor at least 35 hours in the week in question.

● If you are caring for two or more disabled people, you can only qualify for CAif you are caring for at least one of them for 35 hours or more a week.9 Youcannot add together the hours you are caring for all of them to make up the 35.

Breaks from caringOnce you have been caring for a severely disabled person for a while, you can takea temporary break from caring and continue to qualify for CA. This applies if youhave been providing care for at least 35 hours a week in 22 of the last 26 weeks (orfor at least 14 of the last 26 weeks, and the reason you did not provide care for 22weeks was that either you or the disabled person were in hospital or in a similar


Chapter 25Carer’s allowance..........................................................

pter 25r’s allowance.........

....551

5

institution). Weeks before you claimed CA can be counted. This means you canhave a four-week break from caring in any period of six months, or a 12-weekbreak if one of you was in hospital or in a similar institution (see p977 for whatcounts) for at least eight weeks.10 Note, however, that CA stops if the AA, DLA,PIP or constant attendance allowance of the person for whom you are caring stopsbecause s/he is in hospital or in a similar institution (see Chapter 47).11

If the person receiving care diesIf the person you care for dies, you continue to be entitled to CA for a further eightweeks, even though you are no longer providing care, as long as you satisfy theother qualifying conditions. The eight weeks run from the Sunday following thedeath, or from the day of the death if this was a Sunday.12

Gainfully employed

You cannot qualify for CA if you are ‘gainfully employed’. You count as gainfullyemployed in a week (and cannot qualify for CA in that week) if your earnings inthe previous week (from employment and self-employment) were more than£100.13 For the way earnings are calculated, see p908. Your earnings are ignored ifyou are working during a period when you are not actually caring for the severelydisabled person – eg, because s/he is in hospital or you are on a four-week breakfrom caring (see p550).14 If you stop work and then claim CA, your final earningsgenerally do not affect your entitlement to CA (see p907).

2. The rules about your age

You can claim carer’s allowance (CA) if you are aged 16 or over.15 There is noupper age limit.

................................................Age rules before 1994 and 2002There has been no upper age limit for CA since 28 October 2002. However, due to the

overlapping benefits rules, if you receive retirement pension you might not be paid CA,

even if you qualify (see p1207).

Between 28 October 1994 and 28 October 2002, the upper age limit for invalid care

allowance (ICA – now called CA) was 65. Before 28 October 1994, the upper age limit

discriminated against women and some affected women may still be able to claim now.

Before 28 October 2002, to qualify for ICA after your 65th birthday, you had to have

been entitled to it before you were 65. When you then reached 65, some of the qualifying

conditions were relaxed. You may be able to continue to qualify on this basis now.

See p46 of the Welfare Benefits and Tax Credits Handbook 2010/11 for further information.

................................................


Part 5: Other benefitsChapter 25: Carer’s allowance3. People included in the claim..........................................................

Part 5: OtheChapter 25:3. People incl.........

....552

5

3. People included in the claim

You claim carer’s allowance (CA) for yourself.You now cannot normally claim any increase in your CA for your partner or

children.

................................................Can you get an increase for an adult or child?You may continue to qualify for an increase in your CA for:

– your spouse or civil partner, or for someone who cares for your child, if you were entitled

to the increase before 6 April 2010 (but see below);

– a child, if you were entitled to the increase before 6 April 2003 and your entitlement has

continued since that date.

If an increase for a child stops being paid for no more than 58 days you may continue to

qualify for the increase.16 If your entitlement to the increase ends because you stop being

entitled to CA, you may be able requalify after a longer period. If you are a member of a

couple, you might not get an increase for a child if your partner’s earnings (see p553) are

at or above the earnings limit for the increase. See p745 of the 2012/13 edition of this

Handbook for further details, and pxv for the current earnings limits. For other rules relating

to entitlement to the increase see pp746–48 of the 2002/03 edition.

................................................When an increase for an adult ends

If you were entitled to an increase for an adult (either for your spouse or civilpartner, or for an adult who looks after your child) before 6 April 2010, you cancontinue to qualify for it until 6 April 2020, or until you stop satisfying theconditions for the increase, if this happens before 6 April 2020.17

You stop satisfying the conditions for the increase if:18

● your entitlement to CA ends; or● you no longer reside with the person for whom you get the increase; or● the person for whom you get the increase is involved in a trade dispute (see

p1012); or● in respect of an increase for an adult who looks after your child,

– s/he no longer looks after a child for whom you are entitled to child benefit;– s/he is a prisoner (see p994); or– s/he is absent from Great Britain (unless s/he is residing with you outside

Great Britain and you still qualify for CA).

Once you lose entitlement in any of the situations above, you cannot reclaim theincrease.

Your entitlement to an increase can also be affected by the earnings of theadult for whom it is paid. You are not entitled to an increase for a particular weekif her/his previous week’s earnings were more than the amount of the increase. If




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the increase is for an adult who cares for your child and s/he is your employee,any wages you pay her/him for this work are ignored.19 If the only reason you losethe increase is because the adult’s earnings are too high, you can get it again ifher/his earnings subsequently reduce and are not more than the amount of theincrease.20

If the adult for whom you have claimed the increase is getting an incomereplacement benefit in her/his own right, you may not be paid the increase(see p1209 for the overlapping benefit rules). However, you can be paid theincrease again if her/his entitlement to the income-replacement benefit ends.

................................................Definitions‘Earnings’ includes income from employment and self employment ‘earnings’ as well as

payments received from an occupational or personal pension or periodic payments from

the Pension Protection Fund.21 See Chapter 44 for what counts as earnings and how

weekly earnings are calculated.

‘Child’ is defined in the same way as for child benefit and includes a ‘qualifying young

person’ (see p563).

................................................Note:● If the increase is paid for your partner, s/he may be required to attend a work-

focused interview (see p1085).● You can choose to stop claiming an increase in your CA – but if you or your

partner are also entitled to a means-tested benefit (other than universal credit)or tax credits, you may be treated as if you still receive it for the purpose ofcalculating your entitlement. For further informationabout‘notionalincome’,see p346 for pension credit (PC) and housing benefit (if you are at least thequalifying age for PC), p315 for the other means-tested benefits and p1479 fortax credits.

4. The amount of benefit

Carer’s allowance (CA) is paid at a weekly rate of £59.75.22

If you are still entitled to an increase in your CA for an adult or for a child, seepxv for the amounts.

Note: if you are a member of a couple, your CA might be paid at a reduced rateif your partner fails to take part in a work-focused interview (see p1085).


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5. Special benefit rules

Special rules may apply if:● you have come from or are going abroad (see Chapters 69 to 72);● you, or the person you are caring for, are in hospital (see p980);● the person you are caring for goes into a care home or other similar

accommodation (see p989);● you, or the person you are caring for, is a prisoner (see p994).

6. Claims and backdating

To be entitled to carer’s allowance (CA), you must make a claim for it.23 Thegeneral rules on claims and backdating are inChapter53.This sectionexplainsthespecific rules that apply to CA.

If you are claiming a means-tested benefit, see p558 before claiming CA, as theeffect of CA on your other benefits (and possibly those of the person for whomyou care) means it is not always advisable for you to claim it.

Making a claim

A claim for CA must be made in writing. You can do this by completing:● the approved form. Send it to the Carer’s Allowance Unit, Palatine House,

Lancaster Road, Preston PR1 1HB. You may also be able to make your claim bytaking or sending it to an ‘alternative office’ (see p1177); or

● an online application form at www.dwp.gov.uk/carersallowance.

Keep a copy of your claim form in case queries arise.You must provide any information or evidence required (see p555). In certain

circumstances, the DWP may accept a written application not on the approvedform.24 You can amend or withdraw your claim before a decision is made (seep1178). If there is a delay in making a claim, you may be able to get a short-termadvance of benefit (see p1209).

................................................FormsGet Form DS700 (DS700(SP) if you get retirement pension) from your local Jobcentre Plus

office, DWP office or telephone contact centre or from www.gov.uk or the Carer’s

Allowance Unit on 0845 608 4321 (textphone 0845 604 5312; text relay 18001 0845 608

4321) or the Benefit Enquiry Line on 0800 882200 (textphone 0800 243355).

................................................




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Who should claim

You must normally claim CA on your own behalf. However, if you are unable tomanage your own affairs, another person can claim CA for you as your ‘appointee’(see p1177).

Before claiming, you should be aware of how CA affects your entitlement tomeans-tested benefits and the means-tested benefit entitlement of the person forwhom you care (see p558).

Information to support your claim

When you claim CA, you must:● satisfy the ‘national insurance (NI) number requirement’ (see p1178);● provide proof of your identity, if required (see p1180); and● ensure you have made a valid claim – ie, you must supply information and

evidence required with the claim (see p1181).

The CA claim forms contain a declaration to be completed by the person forwhom you care or the person acting for her/him. This asks for confirmation thatyou provide 35 hours’ care a week and explains that her/his benefit may beaffected if your claim is successful. Even if this declaration is not completed, theDWP should still make a decision on your claim, although failure to return it islikely to lead to a delay in the decision and, if it raises questions about the level ofcare you provide, may result in a refusal of your claim.

Even if you have provided all that was required when you claimed, you may beasked to provide additional information and evidence relevant to your claim (seep1193). There is a strict time limit for providing this. If you do not do so, thedecision maker can decide your claim in the way most adverse to you.

Note: you may be asked to provide information after you are awarded CA. Ifyou fail to do so, your CA could be suspended or even terminated (see p1219).

The date of your claim

Claim as soon as you think you might be entitled to CA; you are not usuallyentitled to CA for any day before your date of claim. The date of your claim isimportant as it determines the date from which you are awarded CA. In somecases, you can claim in advance (see p556) and sometimes your claim can bebackdated (see p556). If you want this to be done, make this clear when you claimor the DWP might not consider it.

Your ‘date of claim’ is usually the date on which your completed claim formis received by the DWP or a designated ‘alternative office’ (see p1177).25 However,if you make a claim for CA in writing, but not on the approved form, or if theclaim form you submit is incomplete, you may be asked to provide furtherinformation or to complete the approved form properly. As long as this additionalinformation or the form is returned within a month of its being sent back to you


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(or longer if the decision maker thinks it is reasonable – see p1182), the decisionmaker must treat your claim as made on the date your initial written claim orform was received.26 If you submit your claim online, your date of claim is usuallythe date it is received, although a decision maker has the discretion to treat it ashaving been received on an earlier or later date than this.27

If you claim the wrong benefit

If you claim income support (IS) when you should have claimed CA (either inaddition to or instead of IS), a decision maker can treat your IS claim as a claim forCA (see p1184).28 This applies even if you claim IS ‘on the grounds of disability’(see p50) on or after 27 October 2008. This rule may enable you to get round thestrict time limits on backdating (see below). Note: at the time this Handbook waswritten, the rules did not allow a decision maker to treat a universal credit claimas a claim for CA.

Claiming in advance

You can claim CA up to three months before you qualify.29 This gives the DWPtime to ensure you receive benefit as soon as you are entitled. The decision makercan award benefit from a future date if s/he believes you will satisfy all the CAqualifying conditions on that date. You may want to consider claiming inadvance – eg, if you are currently earning more than £100 a week, but you plan tostop work or reduce your hours.

Backdating your claim

It is very important to claim in time. A claim for CA can usually only be backdatedfor a maximum of three months.30 You must satisfy the qualifying conditionsover that period. You do not have to show any reasons why your claim was late.

Your claim can be backdated for more than three months if:31

● you claim CA within three months of a decision to award a ‘qualifying benefit’to the person for whom you care (including a decision made by the First-tierTribunal, the Upper Tribunal or a court). Your CA is backdated to the first dayof the benefit week in which the qualifying benefit is payable. However, if thedecision awarding the qualifying benefit was made following a renewalclaim where a fixed period award has ended or is due to end, your CA isbackdated to the first day of the benefit week in which the renewal awardbecame payable; or

● your CA stopped because the ‘qualifying benefit’ of the person for whom youcare was reduced or stopped (including where a fixed-term award for thequalifying benefit came to an end) or where payment of the qualifying benefitstopped because the person for whom you care goes into hospital, or is beingprovidedwithaccommodation inacarehomeorothersimilaraccommodation(see p986). If you make a further claim within three months of the decision to




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reinstate the qualifying benefit, or of payment starting again, your CA isbackdated to the date that your earlier claim ended or the date from which thequalifying benefit was re-awarded or became payable again, whichever is later.

A ‘qualifying benefit’ is either attendance allowance, the middle or highestrate disability living allowance care component, either rate of the dailyliving component of personal independence payment, or constant attendanceallowance. The government intends that armed forces independence paymentwill also be a qualifying benefit.

If you might have qualified for benefit earlier but did not claim because youwere given the wrong information by the DWP or because you were misled by it,you could ask for compensation (see p1434) or complain to the Ombudsman viayour MP (see p1433).

7. Getting paid

Payment of carer’s allowance (CA) is normally made by direct credit transfer intoyour bank (or similar) account.32 If you are unable to open or manage an account,payment can be made by ‘simple payment’ (see p1205). If you are unable to actfor yourself, CA can be paid to someone else on your behalf – called yourappointee (see p1177).

................................................When is carer’s allowance paid?You are paid on a Monday (or Wednesday if the person for whom you care receives

constant attendance allowance with an industrial injuries benefit or war pension).33 CA is

paid weekly in advance or four-weekly in arrears (13-weekly in arrears if you agree).34

................................................Payments normally run from the first payday (ie, Monday or Wednesday) afterthe date of your claim, unless the date of your claim is on your payday, when theyrun from that day.

Note:● CA awards can be made for a fixed or indefinite period.35

● Deductions can be made from your CA to repay certain loans (see p1228), andin some cases to pay child support maintenance (see p1229).

● You might not be paid CA if you have been sanctioned for benefit offences (seep1300).

● If you have forgotten your PIN, see p1205. If you have lost your ‘simplepayment’ card, or you have forgotten your memorable date, see p1205.

● If payment of your CA is delayed, see p1435. You might be able to get a short-term advance (see p1209). If you wish to complain about how your claim hasbeen dealt with, see p1428. You might be able to claim compensation (seep1434).


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● If payment of your CA is suspended, see p1218.● If you are overpaid CA, you might have to repay it (see Chapter 56) and, in

some circumstances, you may have to pay a penalty (see p1294). If you havebeen accused of fraud, see Chapter 57.

Change of circumstances

You must report changes in your circumstances that might affect your right to,the amount of, or the payment of, your benefit (see p1217). You should do thispromptly in writing or by telephone to the Carer’s Allowance Unit (although inindividual cases notification might be accepted in a form other than in writing orby telephone).36 In some cases, however, the decision maker might say you mustreport changes in writing. You can also notify your change of circumstancesonline at www.dwp.gov.uk/carersallowance.37 Note: if the change is a birth or adeath, you may be able to report it to a local authority under the ‘Tell Us Once’scheme (see p1217).

In some circumstances, if you do not report a change of circumstancesandyouare overpaid as a result, you may have to pay a penalty (see p1217).

Although you may be able to report changes of circumstances by telephone orsome other means, it is always best to report changes in writing. Keep a copy ofthe letter you send in case problems arise.

When there has been a relevant change of circumstances, a decision makerlooks at your claim again and makes a new decision. To find out the date fromwhich the new decision takes effect, see p1331.

8. Tax, other benefits and the benefit cap

Tax

Carer’s allowance (CA) (including an increase in your CA for your spouse, civilpartner, or someone who cares for your child, if you still receive this) istaxable.38 However, increases for children (if you are still receiving them) are nottaxable.

Means-tested benefits

Before you claim CA, consider how your claim might affect your entitlement tomeans-tested benefits. If in doubt, seek advice.

If you are awarded CA and the person for whom you care has a severe disabilitypremium/additional amount included in her/his income support (IS), income-based jobseeker’s allowance (JSA), income-related employment and supportallowance (ESA), pension credit (PC) or housing benefit (HB), her/his entitlementto that premium/additional amount can be affected (see p252). Bear in mind that




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the severe disability premium/additional amount is worth more than the carerpremium/additional amount.

Issues about incomeCA counts in full as income for all means-tested benefits. However, in some casesan increase in your CA for an adult or child can be ignored when calculating yourmeans-tested benefits. See p273 for universal credit (UC), p339 for PC and HB ifyou are at least the qualifying age for PC, and p299 for all other means-testedbenefits.

CA counts as qualifying income for the savings credit of PC.Note:

● For IS, income-based JSA and income-related ESA, and if you are under thequalifying age for PC, HB, if you choose not to claim CA and the DWP decidesthat you failed to apply for it deliberately, you may be treated as if you receiveit.

● For all means-tested benefits other than UC, if you give up your claim for CA,you can be treated as if you receive it if the DWP decides that you deliberatelydeprived yourself of it in order to qualify for, or increase your entitlement to,benefit for yourself or your family (but see p315 and p346).

Conditions for getting means-tested benefitsIf you receive CA, you come within one of the groups of people who can claim IS.

If you are a member of a ‘joint-claim couple’ claiming income-based JSA,you are not required to satisfy the jobseeking conditions (see Chapter 51) if youare a carer who could claim IS (see p47). You may wish to consider claiming ISor PC instead of income-based JSA.

If you are claiming UC, you do not have to meet any of the work-relatedrequirements (see p1077) if you qualify for CA, or you would do but for the factthat your earnings are higher than £100 a week.

The amount of means-tested benefitsIf you receive CA (or are entitled but do not receive it because of the overlappingbenefit rules – see p1207), a carer premium/additional amount is included inyourIS, income-based JSA, income-related ESA, PC and HB.

If you are claiming UC, and:● you are a member of a couple, you can get a childcare costs element if one of

you is in paid work and the other is not in paid work, is unable to providechildcare and qualifies for CA;

● you (or your partner) qualify for CA, or would do but for the fact that your (orher/his) earnings are higher than £100 a week, a carer element is included inyour UC maximum amount. However, if you have limited capability for workand are a carer, your UC cannot include both a limited capability for workelement and a carer element for the same person. If you are a single claimant


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with limited capability for work-related activity, your UC includes a limitedcapability for work-related activity element instead of a carer element. If youare a member of a couple, your UC includes the limited capability for work-related activity element if one has not already been included for your partner.However, if a limited capability for work-related activity element has beenincluded for you, a carer element can be included for your partner if s/hesatisfies the conditions, whether or not s/he would also qualify for a limitedcapability for work-related activity element. You may need to work out howyou would be better off financially.

Non-means-tested benefits

For each week you receive CA, you can get national insurance credits (see p890).CA is subject to the overlapping benefit rules, which means that you may not

be paid CA in full if anotherearnings-replacementbenefit(eg,retirementpension)is paid to you (see p1207).

Tax credits

CA counts in full as income for child tax credit and working tax credit (WTC).Remember, however, that you cannot get CA if you are in gainful employment(see p551).

If you are a member of a couple with at least one child or qualifying youngperson, and one of you is entitled to CA, the other only has to work 16 hours aweek to qualify for WTC (see p189). You may also qualify for the childcareelement of WTC (see p1451).

The benefit cap

In some cases, the total amount of specified benefits you receive is limited to £350a week (if you are a single claimant without children) or £500 a week (if you are alone parent or a member of a couple). This is known as the ‘benefit cap’. CA is oneof the specified benefits. The benefit cap does not normally apply if you are atleast the qualifying age for PC. There are other exceptions. The benefit cap isadministered by the local authority (or if you are claiming UC, by the DWP); itreduces the amount of your HB (or the amount of your UC). See p1211 for furtherinformation.

Passports and other sources of help

If you get CA (or would get it but for the overlapping benefit rules), you areentitled to a Christmas bonus (see p868). You may be able to get help, supportand services from your local authority; ask it for a carer’s assessment. If you have alow income, you may be entitled to council tax reduction (see p740).




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Notes..........................................................

1. Who can claim carer’s allowance1 s70 SSCBA 1992; regs 5 and 9(1)

SS(ICA) Regs2 s115 IAA 19993 s70(2) SSCBA 1992; reg 3 SS(ICA) Regs4 s70(7) SSCBA 19925 Reg 4(1) SS(ICA) Regs6 s122 SSCBA 19927 CG/6/19908 R(G) 3/919 Reg 4(1A) SS(ICA) Regs

10 Reg 4(2) SS(ICA) Regs11 SSWP v Pridding [2002] EWCA Civ 30612 s70(1A) SSCBA 199213 Reg 8(1) SS(ICA) Regs14 Reg 8(2) SS(ICA) Regs

2. The rules about your age15 s70(3) SSCBA 1992

3. People included in the claim16 Art 3 TCA(No.3)O17 s15 WRA 200918 s90 SSCBA 1992; regs 4B, 12(2) and Sch

2 Part II SSB(Dep) Regs19 Sch 2 para 7(b)(iii) SSB(Dep) Regs20 s92 SSCBA 1992; s15 WRA 2009; para

16108 DMG21 s89 SSCBA 1992; Sch 2 para 9 SSB(Dep)

Regs

4. The amount of benefit22 Sch 4 SSCBA 1992

6. Claims and backdating23 s1 SSAA 199224 Reg 4(1) SS(C&P) Regs25 Reg 6(1)(a) and (1ZA) SS(C&P) Regs26 Reg 6(1)(b) SS(C&P) Regs27 Reg 4ZC and Sch 9ZC para 4(1) and (2)

SS(C&P) Regs28 Reg 9(1) and Sch 1 SS(C&P) Regs29 Reg 13 SS(C&P) Regs30 Reg 19 SS(C&P) Regs31 Reg 6(16)-(22), (33) and (34) SS(C&P)

Regs

7. Getting paid32 Reg 21 SS(C&P) Regs33 Reg 22(3) and Sch 6 SS(C&P) Regs

34 Reg 22(1) SS(C&P) Regs35 Reg 17 SS(C&P) Regs36 Reg 32 SS(C&P) Regs37 Reg 32ZA SS(C&P) Regs

8. Tax, other benefits and the benefit cap38 ss660, 661 and 676 IT(EP)A 2003

Documents

remains the essential benefits - CPAG · 2019. 2. 11. · annually updated Handbook is the deﬁnitive guide to ... Chapter33 Contribution-basedjobseeker’sallowance 718 Chapter34