Can foster carers claim Carer’s Allowance?

Carer’s Allowance is a benefit for people who provide regular care to someone with substantial care needs. It is separate from fostering allowances and is assessed using the rules for the person receiving care, the carer’s earnings and the amount of care provided.

Fostering does not usually create entitlement to Carer’s Allowance. This remains the case even where a fostered child has additional needs. Fostering payments, training requirements and the legal nature of the fostering arrangement mean that a foster carer should not assume they can claim Carer’s Allowance for a child placed with them.

You may still be able to claim if you also care for another person, such as a disabled child, partner, relative or friend, provided you meet the normal conditions. The person you care for must usually receive a qualifying disability benefit. These can include the care component of Disability Living Allowance, the daily living component of Personal Independence Payment or Attendance Allowance. The qualifying benefit must be awarded at the required rate; simply having a disability or receiving any benefit is not enough.

Other main conditions include:

• providing at least 35 hours of care each week;
• meeting the rules about earnings after permitted deductions, such as tax, National Insurance and certain care-related expenses;
• being aged 16 or over;
• being ordinarily resident in the relevant part of the UK and meeting the presence and residence rules; and
• not being in full-time education under the rules that apply to Carer’s Allowance.

There is no need to be related to the person you care for, and you do not normally have to live at the same address. Care can include washing, dressing, preparing meals, managing medication, accompanying someone to appointments, helping with household tasks or providing supervision and emotional support. The 35-hour requirement is about the total care provided each week, rather than a fixed daily schedule.

Your earnings matter. Carer’s Allowance has an earnings limit, which can change when the benefit rules are updated. The assessment is not based simply on your gross pay. Certain deductions may be allowed, but the calculation can be complicated if you are employed, self-employed or pay someone to provide care while you work. Fostering income has its own tax and benefit rules, so obtain an individual calculation rather than assuming that your fostering payments will be treated in the same way as wages.

Receiving another benefit can also affect entitlement. Some benefits cannot be paid in full alongside Carer’s Allowance because of overlapping-benefit rules. For example, if you receive State Pension or another contribution-based benefit, you may not receive an additional Carer’s Allowance payment, although your underlying entitlement may still be relevant when other benefits are assessed. Carer’s Allowance can also affect the benefits of the person you care for, particularly additions linked to severe disability.

If you receive Universal Credit, claiming Carer’s Allowance can change the amount of Universal Credit awarded. In some circumstances, a person who provides the required level of care may qualify for the carer element of Universal Credit instead. The two benefits should not be treated as interchangeable: Universal Credit has its own income, capital and household rules, while Carer’s Allowance has its own earnings and overlapping-benefit conditions.

How to apply

An application normally requires your National Insurance number, bank or building society details, information about the person you care for and details of their qualifying disability benefit. You will also need to provide information about employment, self-employment and any allowable expenses. Keep records of your working hours, earnings and care activities in case further information is requested.

Check whether the claim can be backdated and apply from the earliest date you may qualify. The start date can depend on when the cared-for person’s qualifying benefit began and when the care conditions were first met. Once an award is in place, report changes such as a change in earnings, work, education, address, the amount of care provided or the cared-for person’s benefit. Failing to report a change can lead to an overpayment that has to be repaid.

For a foster carer, the practical approach is to separate two questions: whether Carer’s Allowance is available for a fostered child, and whether you meet the conditions because you care for someone else. Fostering allowances and support payments are not a substitute for checking benefit entitlement, so speak to the fostering agency, a benefits adviser or the relevant government service before making a claim. Rules and payment rates can change, and an individual assessment is particularly important where fostering, employment and Universal Credit are all involved.