Can foster carers claim Carer’s Allowance?

Carer’s Allowance is assessed separately from fostering payments. The key question is whether you provide regular care for a person who receives a qualifying disability benefit and whether you meet the Carer’s Allowance rules relating to your own work, earnings and circumstances.

Carer’s Allowance is not awarded simply because someone is a foster carer. The benefit is intended for people who provide substantial care to someone with an illness or disability. The person being cared for must usually receive a qualifying benefit at the appropriate rate. These benefits can include:

• the daily living component of Personal Independence Payment (PIP);
• the middle or highest rate of the care component of Disability Living Allowance (DLA);
• Attendance Allowance;
• the equivalent daily living benefits under Scotland’s disability benefit system;
• Constant Attendance Allowance; or
• Armed Forces Independence Payment.

The qualifying benefit normally needs to be in payment before a Carer’s Allowance claim can be accepted. Caring does not have to be provided every day, but you must provide at least the minimum number of hours of care set by the current rules during a typical week. Care can include help with washing, dressing, preparing meals, managing medication, attending appointments, communicating, or keeping the person safe.

Fostering payments and Carer’s Allowance are different. A fostering allowance is paid in connection with the care of a foster child and is designed to contribute towards the costs of caring for that child. It does not automatically create entitlement to Carer’s Allowance. The fact that a foster child has additional needs or receives a disability benefit does not, by itself, mean that a foster carer can claim Carer’s Allowance for that child. Foster children are treated separately under the benefit rules.

A foster carer may, however, be able to claim Carer’s Allowance for another person they care for, such as a disabled child, partner, relative or other eligible person. The usual conditions still apply, including:

• providing the required level of care;
• meeting the current earnings limit after permitted deductions;
• being present and ordinarily resident under the relevant rules; and
• not being in full-time education or subject to another restriction that prevents payment.

The earnings test is particularly important for foster carers. Fostering can involve payments, expenses and self-employed arrangements, so the amount considered for Carer’s Allowance may not be the same as the total amount received. The treatment can depend on the type of payment, allowable expenses and how your fostering activity is arranged. Keep clear records and check the current calculation with the Department for Work and Pensions before submitting a claim. Do not assume that the full fostering allowance is either automatically included or automatically ignored.

Carer’s Allowance is not means-tested in the same way as many benefits. Savings are not normally part of the eligibility test, but earnings and the other conditions do matter. Carer’s Allowance can also affect the benefits received by the person you care for. For example, a severe disability addition or similar extra amount may stop when another person is treated as their carer. Their household should check the possible effect before a claim is made.

If you qualify, receiving Carer’s Allowance may also provide National Insurance credits and could affect other benefits based on your circumstances. It is taxable, so this should be considered alongside any income connected with fostering and other work. A claim may also affect entitlement to means-tested support, including Universal Credit, although the precise effect depends on the whole household’s circumstances.

How to apply:

• Check that the person you care for receives a qualifying disability benefit at the required rate.
• Work out whether you provide the required amount of care and whether your earnings are within the current limit after permitted deductions.
• Gather information about your caring responsibilities, work, fostering arrangements and income.
• Apply through the current Carer’s Allowance service or the relevant alternative route for your circumstances.
• Review the decision carefully, particularly if fostering payments or expenses have been included in the calculation.

If a claim is refused or the amount appears to have been calculated incorrectly, you can ask the Department for Work and Pensions to look at the decision again and, where appropriate, appeal. Keep evidence of your earnings, expenses and caring responsibilities. If you do not qualify for Carer’s Allowance because of the earnings rules, you may still be able to claim Carer’s Credit if you provide enough care and satisfy its separate conditions. Carer’s Credit is not a payment equivalent to Carer’s Allowance, but it can help protect your National Insurance record.

Because benefit thresholds and qualifying rules can change, check the latest guidance before applying. A fostering service can explain how a claim may sit alongside your fostering arrangements, while the Department for Work and Pensions decides whether you meet the legal conditions for Carer’s Allowance.