A formal alert has been issued by HM Revenue and Customs following a state pensioner's enquiry about how receiving their state pension affects Carer's Allowance payments from the Department for Work and Pensions.
The Pensioner's Query That Sparked The Warning
The situation came to light when a retiree used the social media platform X, formerly known as Twitter, to contact HMRC directly. They explained: "In December I start receiving state pension. I've notified DWP of this and Carer's Allowance will end. Do you update my income details and tax codes automatically or do I need to notify you and if so how is best way?"
HMRC's response was clear and directive. A spokesperson stated: "The DWP will tell us about the state pension, but you should tell us about any change to the Carer's Allowance. You can contact the helpline either by phone, webchat or post."
Understanding The Payment Rules
The clarification highlights a critical rule for UK retirees: you cannot receive the full amount of both Carer's Allowance and your State Pension simultaneously. The weekly Carer's Allowance rate is set at £83.30, and this figure determines your eligibility for payments.
If your state pension is £83.30 per week or more, you will not receive a Carer's Allowance payment. For those whose state pension is less than this threshold, a Carer's Allowance payment will be made to cover the difference. Importantly, if your state pension exceeds £83.30 weekly, you won't get a Carer's Allowance payment, but your eligibility for Pension Credit may increase instead.
Carer's Allowance Eligibility Explained
Carer's Allowance is a DWP benefit designed to support individuals who provide care for someone for at least 35 hours each week. The care recipient must be receiving certain qualifying benefits. This financial support amounts to £83.30 per week, or £4,331.60 annually.
The 35 hours of care can include a wide range of activities such as:
- Helping with washing and cooking
- Taking the person you care for to medical appointments
- Assisting with household tasks like managing bills and shopping
To qualify for Carer's Allowance, all the following conditions must be met:
- You must be aged 16 or over
- You spend a minimum of 35 hours per week caring for someone
- You have been in England, Scotland or Wales for at least two of the last three years (exceptions apply for refugees)
- You normally live in England or Wales
- You are not in full-time education
- Your weekly earnings are £196 or less after tax and expenses
This official guidance serves as a vital reminder for all carers approaching state pension age to proactively manage their benefit notifications to prevent potential overpayments or disruptions to their income.
