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Carer's Allowance, earnings and UC

Croeso07

Hi,
I have been trying to read some other similar discussions here, but none exactly fits my problem. We receive UC, with Carer's element for our son. At the moment, my husband temporarily does not work, but he will start a new contract this week. I only work part-time. I have applied for Carer's Allowance last week, but not quite sure whether this is a good decision.

I will explain.

When my husband starts work, I get that the UC payments may stop as they will deduct £1 for £1, which means the Carer's element will disappear as well. Would this mean if I get carer's allowance and I am within £132 weekly earnings I get it regardless of my husband's income?

Also, I have agreed with my employer to increase my hours by 3.5 a week, however I realised now that this would take me over £132 weekly limit, only by couple of pounds, but still.

What is the best solution here?

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Croeso07

My husband will be working full time so I can see UC payments definitely going down the hill, or stopping altogether

calcotti

Croeso07 said:When my husband starts work, I get that the UC payments may stop as they will deduct £1 for £1, which means the Carer's element will disappear as well.

No they will not. They will reduce the UC by 55% of the earnings taken into account. If your son is a child you will have a Work Allowance which means that the first £334 of the earnings will be ignored completely if your UC includes hep with rent or the first £573 will be ignored if it doesn't.

Croeso07 said: Would this mean if I get carer's allowance and I am within £132 weekly earnings I get it regardless of my husband's income?

Your husband's earnings have no impact on your entitlement to CA. You must, as you indicate, not earn more than £132.

Any CA you receive will be deducted in full from the UC.

Croeso07 said: Also, I have agreed with my employer to increase my hours by 3.5 a week, however I realised now that this would take me over £132 weekly limit, only by couple of pounds, but still.

Which means that you will not be entitled to CA.

Croeso07 said: What is the best solution here?

Depends on the numbers. How much UC do you receive at the moment? Does the UC include a child? Does the UC include help with rent? How much does your husband expect to earn (after tax and NI).

Croeso07

If it is possible and worth getting the carers allowance I would refrain from increasing my hours, otherwise I take it. The extra money from my work after deductions would be around £39 per week, which will definitely topple my weekly earnings over £132

calcotti

If you will still be getting UC it may not be worth claiming CA because it will be deducted from the UC. Can't advise further unless you answer the questions I asked.

calcotti said: How much UC do you receive at the moment? Does the UC include a child? Does the UC include help with rent? How much does your husband expect to earn (after tax and NI).

Realised will also need to know - does your work already use up any applicable Work Allowance?

Croeso07

calcotti said:

Croeso07 said:When my husband starts work, I get that the UC payments may stop as they will deduct £1 for £1, which means the Carer's element will disappear as well.

No they will not. They will reduce the UC by 55% of the earnings taken into account. If your son is a child you will have a Work Allowance which means that the first £334 of the earnings will be ignored completely if your UC includes hep with rent or the first £573 will be ignored if it doesn't.

Croeso07 said: Would this mean if I get carer's allowance and I am within £132 weekly earnings I get it regardless of my husband's income?

Your husband's earnings have no impact on your entitlement to CA. You must, as you indicate, not earn more than £132.

Any CA you receive will be deducted in full from the UC.

Croeso07 said: Also, I have agreed with my employer to increase my hours by 3.5 a week, however I realised now that this would take me over £132 weekly limit, only by couple of pounds, but still.

Which means that you will not be entitled to CA.

Croeso07 said: What is the best solution here?
Depends on the numbers. How much UC do you receive at the moment? Does the UC include a child? Does the UC include help with rent? How much does your husband expect to earn (after tax and NI).

Sorry, not sure how to quote just one sentence. We are not quite sure what exactly it will be, but I am looking at probably at least £1500-£1600 per month. I reckon UC will be £0

poppy123456

calcotti said:

Depends on the numbers. How much UC do you receive at the moment? Does the UC include a child? Does the UC include help with rent?

Without answering these exact questions it's not possible to advise. You can use a benefits calculator to check entitlement. https://www.entitledto.co.uk/benefits-calculator/Intro/Home?cid=0635435e-a0e1-4392-add0-b873a956a61f

Croeso07

Stillcalcotti said:

If you will still be getting UC it may not be worth claiming CA because it will be deducted from the UC. Can't advise further unless you answer the questions I asked.

calcotti said: How much UC do you receive at the moment? Does the UC include a child? Does the UC include help with rent? How much does your husband expect to earn (after tax and NI).

Realised will also need to know - does your work already use up any applicable Work Allowance?

I think we receive around £1600 now, including carer's element for the child and help with rent. I am not sure what Work Allowance is?

I must admit it was all very confusing as my husband is self employed, but works on the basis if there is any work available. Which means he could work full time for months and then it suddenly stops when the work dries up. It was ongoing for a good while and suddenly no work from the end of March. However, as we receive UC and he is self-employed, the Minimum Income Floor apply, which means that even our factual income was only my part-time work of £535, the Minimum Income Floor managed to triple the amount for take home pay. I was not sure what to do and, in desperation I have changed the caring responsibilities to him on UC as we were getting less of UC than our monthly rent was. Not sure, if it worked but I can see no Minimum Income Floor on UC now. So I gather it messes up the CA I applied for in my name. What I think is to cancel the CA claim, change the caring responsibilities back to me on UC and re-apply for CA in my name as soon as my husband starts work.

Croeso07

I feel I could get tangled in all this unnecessarily, hence asking on here.

calcotti

Croeso07 said: I am not sure what Work Allowance is?

As described in my earlier post

calcotti said: If your son is a child you will have a Work Allowance which means that the first £334 of the earnings will be ignored completely if your UC includes hep with rent or the first £573 will be ignored if it doesn't.

Switching him to get the carer element on UC was a very good move because it means the Minimum Income Floor will no longer apply to him.

However he cannot get the carer element if you claim CA, the carer element will switch back to you if you claim CA. It should therefore cancel the CA claim in your name.

If you are actually receiving UC of £1600/month even if your earnings have used up the Work Allowance your husband would have to earn £2900/month before the UC goes down to nil.