4
Benefits
Financial difficulties can affect many
Carers. This can be as a result of giving
up work or the additional expenditures
which may be involved in caring. As a
Carer you may be entitled to certain
government benefits. The following
information is a brief outline of some of
the benefits that are available. The criteria
for each of these benefits can, at times, be
difficult to understand and often depends
on individual circumstances. Should you
have any queries at all then please do not
hesitate to contact Stirling Carers Centre
on 01786 447003 for advice.
You must tell the relevant department of
the Department for Work & Pensions
and/or Job Centre Plus if someone you
care for goes into or comes out of
hospital. Most benefits reduce after a
person has been in hospital for a certain
number of weeks.
Carer’s Allowance
This is the only benefit specifically for
Carers. Carer’s Allowance is a benefit for
people who regularly spend at least 35
hours per week caring for a severely
disabled person. You don’t have to be
related to, or live with, the disabled
person. You can get Carer’s Allowance
even if you have never worked. It is paid
weekly and the person receiving this
benefit is credited with a Class 1 National
Insurance Contribution.
You may be able to claim Carer’s
Allowance if you are:
 Over 16 years and
 You are caring for someone at
least 35 hours per week and
 The person you are caring for
receives Attendance Allowance or
the middle or higher rate of
Disability Living Allowance Care
Component and
 You are not on a course of full-time
education (attending a course of
21 hours per week or more) and
Updated October 2008

You do not earn over the weekly
earnings limit (equal to the NI
lower earnings limit) set by the
Government (after taking off any
allowable expenses).
In some cases you may fit all the criteria
set out above to receive Carer’s Allowance
but you will not receive a payment
because you are in receipt of a certain
other benefit that is paid at the same or at
a higher amount than Carer’s Allowance.
This is called the “overlapping benefit
rule.” However, it may still be worth
applying even if you do not receive extra
money, as you will normally be credited
with a Class 1 National Insurance
Contribution. Also, if you are in receipt of
either Income Support, Guaranteed
Pension Credit or Income Based
Employment Support Allowance (ESA) this
may be increased as a “Carer’s Premium”
will be included in the calculation.
Please note: if the person you are
caring for lives alone and receives
Attendance Allowance or the middle or
higher rate care component of Disability
Living Allowance and Income Support,
there is a possibility that they could
LOSE money if you claim Carer’s
Allowance for looking after them. If this
is the case then please seek advice
before claiming Carer’s Allowance.
Attendance Allowance (AA)
Attendance allowance is a non meanstested, tax-free benefit for people over
65 who are physically and/or mentally
disabled and need help with personal
care or need supervision to remain safe.
You do not actually have to be
getting any help. It is the help you
need that is relevant, not what you
get. AA can be paid in addition to
almost any other benefit, such as State
Retirement Pension and Pension Credit.
Attendance Allowance is ignored as
income for means-tested benefits so
does not reduce any amount of Pension
Credit, Housing Benefit or Council Tax
Benefit entitlement.
DLA Care Component: this may be
awarded if you need help with personal
care such as washing, dressing, or using
the toilet, or if you need help with
preparing a cooked meal. Your care needs
must ultimately stem from disability – both
physical and mental disabilities may help
you qualify. You must need care,
supervision or watching over from another
person because of your disabilities. DLA
Care Component can be awarded for help
with personal care even if no help is given.
You may be able to claim Attendance
Allowance if you are:
 Aged 65 or over, and
 Need help with personal care
because of illness or disability and
 You have needed the help for at
least 6 months and are likely to
need it for at least another 6
months.
There are three different rates of DLA
Care Component:
Lower: for those who need
attention or supervision from
another person for a significant
portion of the day.
Middle: for those who need
frequent attention and/or
continual supervision during the
day or during the night.
Higher: for those who need
frequent attention and/or
continual supervision during the
day and during the night.
There are two different rates of AA:
Lower rate: for those who need
frequent attention and/or
continual supervision during the
day or during the night.
Higher rate: for those who need
frequent attention and/or
continual supervision during the
day and during the night.
Note: The general rule is that
payment of AA stops after you have
been in hospital for 28 days. You
must notify the relevant department
of the Department for Work &
Pensions (Benefit Agency).
DLA Mobility Component: this may be
awarded if you need help with getting
around, for example, if you cannot walk at
all, you have difficulty with walking, you
are both deaf and blind and need
someone with you outside, you are
severely mentally impaired with severe
behavioural problems, or you can walk but
cannot generally make use of the ability to
do so outside unless accompanied by
someone to guide or supervise you when
outdoors.
Disability Living Allowance (DLA)
There are two parts (components) to
DLA depending on the needs of the
person applying. These are: DLA Care
Component and DLA Mobility
Component. You can be paid either
component on its own or both at the
same time.
DLA Mobility Components can be paid at
two different rates:
You may be able to claim Disability
Living Allowance if you are:
 Under 65 and
 You have an illness or disability,


Lower: for those who can walk
but need guidance or supervision
most of the time in order to walk
outdoors.
and
You need help with getting around
and/or you need help with
personal care and
You have needed help for at least
3 months and are likely to need it
for at least another 6 months.
Higher: for those who are unable
to walk or virtually unable to walk,
have no legs or feet, or are deaf
and blind and need someone with
them outside. The higher rate is
also paid if the person has severe
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Updated 11 December 2008
behavioural problems as a result
of severe mental impairment and
has been awarded the highest
rate of the DLA Care Component.
Employment Support Allowance
(ESA)
As part of the Welfare Reform Act 2007
Employment Support Allowance is a new
single benefit that has been introduced to
replace incapacity benefit and Income
Support paid on the ground of incapacity
(for new claimants) from October 2008.
Existing claimants of incapacity, for the
time being, will continue to receive their
incapacity benefit.
Disability Living Allowance for a Child
from 3 months to 16 years
Care Component: As well as satisfying
the above criteria for DLA Care
Component a child or young person under
16 must show that either: their needs are
substantially in excess of the normal
requirements of persons their age or that
they have substantial care, supervision or
watching over needs.
An important point to note is that those
receiving Statutory Sick Pay (SSP) will
continue to be eligible for a top-up of
Income Support, if entitled. If they cease
to be entitled to SSP then at that point a
claim should be submitted for ESA, which,
if entitled, will be paid at the basic rate.
Mobility Component: Must be 3 years of
age to be eligible to claim the highest rate
of Mobility Component and must satisfy
the above criteria. To claim the lower rate
children must be 5 years of age and must
satisfy the above criteria.
Employment Support Allowance is made
up of:
- a basic allowance set at basic
Job Seeker Allowance level
plus
- (for those qualifying for income
related ESA) housing costs and
premiums;
Attendance Allowance & Disability
Living Allowance – Terminal Illness
If someone is considered to be terminally
ill, they do not have to serve the
‘qualifying periods’ to get DLA Care
Component or Attendance Allowance.
They will qualify automatically for the
highest rate of either if their death can
be ‘reasonably expected’ within the next
6 months. To do this a claim needs to
be made under ‘the special rules’. This
involves completing certain parts of the
claim form and enclosing a factual
statement (DS1500 report) provided by
either your doctor or consultant.
*Please Note: The person who is
terminally ill does not have to sign the
form; another person, including the
terminally ill person's doctor or
consultant can claim on their behalf.
plus, after a 13 week assessment period,
either:
- a support component – an
additional payment in both incomerelated and contributory ESA, for
those most severely ill or disabled
who are assessed as having
“limited capability for work-related
activity;” or
- a work-related activity
component – an additional
payment in both income-related
and contributory ESA, for those not
assessed as “having limited
capability for work-related activity.”
It will be paid in full to those
complying with the “conditionality”
requirements.
Note: The general rule is that payment of
both DLA Care and Mobility Components
stops after you have been in hospital for
28 days for adults, or 84 days for children
under 16. You must notify the relevant
department at the Department for Work &
Pensions and/or Job Centre Plus Office.
To be entitled to ESA the claimant must
satisfy the basic conditions plus the
conditions for either contributory ESA or
income related ESA or both.
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Updated 11 December 2008
To meet the basic conditions the
claimant must:
-have “limited capability for work” and
-be aged at least 16 and under
pensionable age and
-be in Great Britain and
-not be entitled to Income Support or
-not be entitled to Job Seekers Allowance,
either alone or as part of a joint claim
couple, or
-not be entitled to SSP
Plus
-for contributory ESA – must meet
contributory conditions
-for income-related ESA – must meet
income-related conditions



If the claimant meets both sets of
conditions (in addition to the basic
conditions) then they can get contributory
ESA topped up with income-related ESA.
Pension Credit
Pension Credit (PC) is the commonly used
name for the state Pension Credit, a
means tested-benefit for people aged 60
and over. PC has two elements: the
‘guaranteed credit’ that replaced Income
Support for people aged 60 and over and
the ‘Savings Credit’ for people aged 65
and over. The Savings Credit is intended
to provide extra money for people who
have modest savings.
Income Support
Is a means-tested or income related
benefit that does not depend on National
Insurance Contributions and is intended to
provide for basic living expenses for
yourself and your family. It can be paid
on its own or can top-up other benefits or
earnings from part-time work up to the
basic amount the law says you need to
live on. Income Support is for people who
are not required to sign on for work and
who are not entitled to Employment
Support Allowance.

You may be able to claim for Income
Support if:
Your income falls below an amount the
government estimates you need to live on
and you are resident in Great Britain
You are not in full-time education

You are aged between 16 – 60
years and
You are not working16 or more
hours per week. If you have a
partner, they must not be working
24 or more hours a week and
Your capital is no more than the
capital limits set at this time and
either
You are a Carer and are; “regularly
and substantially engaged in caring




and

Guaranteed Credit – is
calculated by working out if your
income is below the ‘appropriate
minimum guarantee’, if it is then
the guarantee credit makes up the
difference.
Saving Credit – may be paid if
you or your partner are 65 or over
and have ‘qualifying income’ above
your ‘savings credit threshold’.
Many retired people who receive the State
Retirement Pension qualify for Pension
Credit. Even if you only receive a small
amount of the guaranteed element of
Pension Credit, it is still worth claiming, as
you may be entitled to other help such as
Dental Treatment, Spectacles, Housing
Benefit and Council Tax Benefit.
and
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Updated 11 December 2008
for another person” and either you
are receiving Carers Allowance or
the person you care for is in
receipt or Attendance Allowance,
Constant Attendance Allowance or
middle of high rate Care
Component Disability Living
Allowance or
You are a lone parent and
responsible for a child under 12
years who is a member of your
household or
You are single or a lone parent and
are fostering a child under 16
through a local authority or
voluntary organisation or
Certain other conditions – please
seek advice.
If you do not receive Income Support, topup ESA or the ‘guaranteed’ element of
Pension Credit and have less than £16,000
savings you may still be eligible for
Housing Benefit and Council Tax Benefit
on low-income grounds. Savings over
the ‘set limits’ at that time for people of
working age and Pensioners affect how
much Housing and Council Tax benefit you
can receive.
The Social Fund:
The Social Fund is a government fund that
makes payments to people in need. It is
divided into two distinct parts, the
Regulated Social Fund and the
Discretionary Social Fund.
The Regulated Social Fund: makes
payments for maternity expenses, funeral
expenses, periods of cold weather and
winter fuel. You are legally entitled to a
payment if you satisfy the rules laid down
in the regulations.
To apply for these benefits contact your
Local Authority Housing & Council Tax
Department.
The Discretionary Social Fund:
provides grants and interest free loans
to meet a variety of other needs. There is
no legal entitlement to payments, they
are discretionary and budget limited, and
decisions are subject to review rather than
appeal. There are three types of
payments: Community Care Grants,
Budgeting Loans and Crisis Loans. You
Council Tax Discounts or Relief
Discounts (including Carers
Discount): Some Carer’s may be eligible
for Council Tax Discounts, regardless of
income and savings.
The Council Tax is based on the idea that
the average household consists of two
people. Single person households pay
25% less Council Tax. When counting the
number of people in a household there are
certain people who are ‘not counted’. This
includes people who are severely
mentally impaired and Carers but only
if they meet all the criteria detailed
below:
do not have to be on benefit to
receive a crisis loan but payments are
discretionary and subject to eligibility
rules.
To apply for any of the above benefits,
then you need to obtain and complete the
specific forms relevant to that particular
benefit. These claim forms are available
from your local benefit office.

Housing Benefit and Council Tax
Benefit

These benefits are administered by your
Local Authority to help with paying rent
and Council Tax.

You can get help with up to 100% of the
rent you pay, and up to a maximum 100%
of your Council Tax. Water rates and
heating charges are not included.
Council Tax Disability Reduction
Scheme: you may be eligible for
reduction if you, or a member of your
household, has a substantial and
permanent disability e.g. you have enough
space in your house for that person to use
a wheelchair indoors. If you get a
reduction your bill will be reduced to the
Council Tax to the next lower valuation
band; e.g. if your house is in Band C you
would be charged Band B.
If you receive Income Support, top-up ESA
or the ‘guarantee’ element of Pension
Credit you may receive the maximum
amount of these benefits, subject to
possible deductions for other people living
in your household.
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Updated 11 December 2008
Living and caring for someone who
is not their partner or are not the
parent if the person being cared
for is a child under 18 years of age
Caring for the person for at least
35 hours per week on average
The person being cared for is in
receipt of Attendance Allowance or
the highest rate of the Disability
Living Allowance care component
Second Adult Rebate: is mainly for
single people who are liable to pay
Council Tax and who live with another
person, not their partner, who is on a
low income.
*Please note: Both Discounts and Second
Adult Rebates are complicated. If you
think you may qualify you should contact
your local Council, the Carers Centre or an
Advice Agency to check on eligibility.
To apply for any of the above benefits,
discounts or rebates then you need to
obtain and complete the specific forms
relevant to the particular benefit,
discount or rebate being claimed.
These claim forms are available from your
local Housing Office.
For information and advice on any of the
above please do not hesitate to contact
Stirling Carers Centre,
65-69 Barnton Street, Stirling, FK8 1HH.
Tel: 01786-447003.
Job Centre Plus Office,
South Lodge, 2 St Ninian’s Road, Stirling,
FK8 2HF. Tel: 01786-432600
Stirling Council Housing
and Council Tax,
Viewforth, Stirling, FK8 2ET
Tel: 0845 277 7000
This information was adapted from D/R/Handbook 33rd
Edition.
Although every effort has been made to ensure that the
contents of this fact sheet are correct, it gives general
guidance only and should not be treated as a complete
and authoritative statement of the law.
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Updated 11 December 2008