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While the state pension offers important financial aid, those who are caring for others will usually expect to receive additional help. People automatically look towards Carer’s Allowance for support, as it provides £67.60 a week. Eligible individuals are those who care for someone for at least 35 hours a week who get certain benefits.
Carer’s Allowance, however, might not be available to people if they are in receipt of a certain amount of state pension.
People will not be able to receive the full amount of both Carer’s Allowance and the state pension at the same time.
This is due to a rule which classifies these payments as “overlapping benefits”.
However, there are allowances which could permit people to get some extra money to reflect their caring responsibilities.
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Carer’s UK has stressed, however, that people should look into the idea of an “underlying entitlement” to Carer’s Allowance.
An underlying entitlement means a person meets the condition for Carer’s Allowance, but cannot be paid the sum due to overlaps.
The Carer’s UK website explains: “This can be financially beneficial as it can increase any means-tested benefits you are currently getting, or it could mean that you become entitled to means-tested benefits for the first time (depending on your and any partner's income and capital).
“This is because having the 'underlying entitlement' to Carer's Allowance means that an amount called the Carer Addition will be included when working out whether you are entitled to means-tested benefits.”
Extra Pension Credit or Housing Benefit could be the type of benefits that will increase if a person has an underlying entitlement.
A number of people have expressed their frustration at the policy as it currently stands.
A petition entitled ‘Allow people receiving state pension to receive Carer’s Allowance’ has been published on the official Parliament petitions website.
It reads: “Unpaid carers receive a Carer's Allowance of £67.60 per week, but when the Carer becomes a state pensioner, this is taken away from them even if they continue to provide essential care to someone.
“State retirement pension is treated as an overlapping benefit and therefore disentitles a person to Carer’s Allowance. This dates back to the Overlapping Benefit Regulations 1979.
“This archaic regulation needs to be amended to remove retirement pension as an Overlapping Benefit or alternatively provide an amendment to allow Carer's Allowance to be paid irrespective of retirement pension.
“Unpaid carers save billions in social care provision and should not be penalised for caring in the community.”
At the time of writing, the petition has gained 299 signatures, but is due to come to an end in two days time.
Petitions will only trigger a Government response if they reach 10,000 signatures.