Money

Tax and benefits

Carers' benefits: what's available and are you eligible?

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Baffled by the benefits available to carers? Saga helps clear up the confusion

We have received a very large number of questions and comments from Saga Zone and Saga Magazine readers on the subject of state benefits and a number of people have asked for clarification of what benefits are available and when, particularly when someone needs care.

We hope this article will help you understand which benefits are available when you, or a family member, require care and, most importantly, we hope that you will be able to understand whether or not you may be eligible for the benefit.

Generally, if you require care it is almost certain that you will be eligible for at least one benefit, sometimes more than one. Some benefits are means-tested, in other words you can only claim them if your savings are under a specified amount, while others are not.

Let's take a look at the most common benefits available to those who require care. We'll list them in the order in which they are often used although, of course, the order can be different, depending on your circumstances.

Disability Living Allowance (DLA)
  • You should be aged 65 or under and be able to demonstrate via the application form that you have some form of physical or mental disability that is severe enough for you to require some help from time to time. Note that you do not need to be receiving care or even help.
  • DLA is not means-tested. So, if you meet the eligibility criteria it won’t matter if you have a bulging bank account or thruppence ha’penny.
  • You won’t usually need to attend a medical examination although this may be requested for some applications.
  • There are two parts to the DLA payment, the care and the mobility component. The care component presently comes in three bands from £17.75 to £67.00 per week while the mobility component is either £17.75 or £46.75 per week. The greater your need, the greater the payment. The payments are tax-free.
Attendance allowance (AA)
  • AA is similar to DLA except that generally you will need to be 65 or over in order to claim AA. This benefit is also non means-tested and once again you will need to demonstrate via the application that you have some form of physical or mental disability that means that you require some form of help, care or assistance.
  • There are two payment levels and currently they are £44.85 per week or £67.00 per week. You will usually be eligible for the higher level if you can show that you need help during the night as well as the day.
  • This is also a non means-tested benefit, the payments are also tax-free but you cannot claim both DLA and AA at the same time, only one or the other.
Carers Allowance (CA)
  • Probably one of the most misunderstood benefits and, many say, one of the unfairest too. Carers allowance is available if you are caring for someone who is getting AA or DLA. The carer must be aged 16 or over and spend at least 35 hours a week caring.
  • Unfortunately CA is means-tested. If you are earning more than £95 a week then you will not be eligible.
  • If you are eligible then you will receive the weekly rate which is presently £50.55.
  • It should be noted that the Government is presently reviewing the Carers Allowance benefit as part of its green paper on the future of social care.
Registered Nursing Care Contribution (RNCC)
  • If you receive your care in a nursing home (as opposed to a residential home) then it is likely that you will be eligible for the RNCC which is thankfully often referred to as the nursing contribution.
  • In order to be eligible you will need to be able to demonstrate that you require actual nursing care i.e. care that must be given, overseen or delegated by a trained registered nurse.
  • The weekly benefit amount at present is £101.
Direct Payments (DP)
  • If you have been assessed by your local council as requiring care then, rather than have the local council actually arrange the care, you may choose instead to receive what are known as Direct Payments which will enable you to make your own arrangements.
  • Generally, your council must have agreed that you require care and that they would pay for it in order for you to be eligible for the Direct Payment.
  • The amount you receive will vary according to your needs.
 

We hope that this brief look at some of the main care related benefits has been helpful. If you require further information you may find the following links helpful and of course you are more than welcome to get in touch with Saga's own care funding team on 0800 056 61 01.

Saga and caring
Funding care
 

The opinions expressed are those of the author and are not held by Saga unless specifically stated.
The material is for general information only and does not constitute investment, tax, legal, medical or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.