Pension & Carers.

Oscarbill9
Oscarbill9 Online Community Member Posts: 2 Listener
edited January 2025 in Benefits and income

Hi. Bit of advice pls. I'm currently in the process of cashing in a pension. I also claim Carers allowance. I earn £130 a wk from my employer. Told Ill be taxed at 40% whish is ok because I can claim 20% of it back from the HMRC. Will this affect my Carers allowance at all or is it classed as saving. Thanks.

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  • Jellihead
    Jellihead Online Community Member Posts: 83 Empowering

    @Oscarbill9

    Carers Allowance the criteria that you look after a person who needs care for over 35 hours a week. Which is why most carers will not be able to go to work full time as this will exceed the £151.00 limit that can be earned by working on top of your CA payment currently £81.90.

    From gov.uk website

    • money received from an occupational or private pension
    • contributions towards your living or accommodation costs from someone you live with (they cannot be a tenant or boarder)
    • the first £20 a week and 50% of the rest of any income you make from someone boarding in your home
    • a loan or advance payment from your employer

    Depending on what age you are you need to be aware that once you reach retirement age which is 67 for people born between 1960 -1961, you will no longer receive CA. Though you may be entitled to "carers entitlement element" when you retire. Also depending on your finances then pension credit.

    Hope this helps.

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