DWP Confirms Career’s Allowance May Be Reduced If You Get a State Pension

The Department for Work and Pensions (DWP) has clarified an important rule that affects thousands of older carers in the UK. If you’re receiving a State Pension, you cannot receive the full Carer’s Allowance at the same time.

This regulation can lead to confusion and missed benefits, so it’s essential to understand how payments are adjusted and what support is still available.

Let’s break down the rule, its impact, and what financial assistance you may still be eligible for—even if you’re not receiving direct payments.

What is Carer’s Allowance?

Carer’s Allowance is a weekly payment of £83.30 provided to individuals who care for someone for at least 35 hours a week. The person receiving care must be on a qualifying disability benefit, such as:

• Personal Independence Payment (PIP)
• Disability Living Allowance (DLA)
• Attendance Allowance

There’s no upper age limit to claim Carer’s Allowance, but complications arise when you reach State Pension age.

The Overlap Rule: Why You Can’t Get Both in Full

According to DWP regulations, Carer’s Allowance and the State Pension are considered “overlapping benefits.” This means you can’t receive both in full if the State Pension amount is equal to or greater than the Carer’s Allowance amount.

Scenario	Outcome
State Pension is less than £83.30/week	You receive top-up Carer’s Allowance to £83.30/week
State Pension is equal to or above £83.30/week	You get no Carer’s Allowance payment
You meet criteria but get no money	You may get underlying entitlement to Carer’s Allowance

For example, if your State Pension is £70 per week, you’ll receive a £13.30 top-up from Carer’s Allowance. But if your pension is £90 per week, you’ll not receive any Carer’s Allowance payments.

What Is ‘Underlying Entitlement’?

Even if you don’t receive the actual Carer’s Allowance, you may still get a letter of underlying entitlement, which can:

• Increase other income-related benefits, like Pension Credit
• Unlock extra premiums such as Carer Premium or Carer Addition
• Provide proof of your caring role for discounts or local support schemes

This recognition as a carer helps improve your overall benefits portfolio, particularly for those on low incomes or means-tested support.

Pension Credit Boosts for Carers

If you’re on Pension Credit and have an underlying entitlement to Carer’s Allowance, you could also qualify for:

Additional Benefits for Carers on Pension Credit
Free prescriptions
Free NHS dental treatment
Warm Home Discount (£150 off electricity bill)
Cold Weather Payment (£25/week during freezing weeks)
Free TV licence if over 75

These benefits can significantly reduce living costs and are often overlooked by those who believe they no longer qualify for help due to receiving a State Pension.

How to Apply and Get Support

If you’re caring for someone, you should still apply for Carer’s Allowance—even if you already receive a State Pension. The DWP will then assess your entitlement status, and if applicable, issue the underlying entitlement letter.

You can apply:

• Online at GOV.UK
• By phone at 0800 731 0297
• With help from Citizens Advice or a support worker

Ensure you meet all basic requirements:

• 35+ hours of care per week
• The person you care for receives qualifying disability benefits
• You earn no more than £151 per week (after deductions)

While Carer’s Allowance cannot fully overlap with State Pension, many older carers still have access to vital financial support. Understanding underlying entitlement and how it interacts with other benefits such as Pension Credit is crucial.

If you’re providing unpaid care—even while on a State Pension—don’t assume you’re excluded. Apply for Carer’s Allowance and let the DWP assess your situation. You may be eligible for a wide range of discounts and added support that can ease your financial burden.

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