Can I claim Universal Credit and Carer’s Allowance at the same time?

Full answer

Carer's Allowance and Universal Credit are not mutually exclusive, and many unpaid carers receive both, but they interact in a specific way rather than simply adding together. Carer's Allowance itself is treated as unearned income within the Universal Credit calculation, so the full weekly Carer's Allowance amount (converted to a monthly equivalent) is deducted pound-for-pound from the claimant's maximum Universal Credit entitlement, unlike earned income, which benefits from a taper and possible work allowance. However, being entitled to Carer's Allowance (or satisfying the underlying conditions for it even if an 'overlapping benefits' rule means it isn't actually paid, such as when the carer also receives a State Pension above the Carer's Allowance rate) triggers the Universal Credit carer element, an additional monthly amount added to the maximum award specifically because the claimant has substantial caring responsibilities for someone receiving a qualifying disability benefit. In many cases the carer element roughly offsets the deduction from counting Carer's Allowance as income, meaning the combination is often not as disadvantageous as it first appears, though the exact net effect depends on the claimant's full circumstances, including earnings, housing costs and other elements. Anyone caring for a disabled relative or friend for at least 35 hours a week, where the person cared for receives a qualifying disability benefit such as PIP daily living component or Attendance Allowance, should check both Carer's Allowance and the Universal Credit carer element rather than assuming only one is available.

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