Can foster carers receive Carer’s Allowance alongside Universal Credit?

Carer’s Allowance and Universal Credit are separate benefits, so entitlement to one does not automatically establish entitlement to the other. A foster carer must satisfy the eligibility rules for Carer’s Allowance and Universal Credit is then calculated using the relevant income and household information.

To qualify for Carer’s Allowance, you normally need to:

• provide at least 35 hours of care each week for someone who receives a qualifying disability benefit;
• meet the earnings rules that apply to Carer’s Allowance; and
• not be excluded because of circumstances such as full-time education or receiving another overlapping benefit.

Fostering payments do not, by themselves, make someone eligible for Carer’s Allowance. Foster carers should also check whether the person receiving care is legally treated as someone for whom Carer’s Allowance can be claimed. A foster child may be subject to specific rules, particularly where the claim is based on the care provided as part of a fostering arrangement. If you care for another qualifying person, such as a disabled adult or a child who is not in foster care, that may be assessed separately.

Where Carer’s Allowance is payable, it is generally treated as income for Universal Credit. Universal Credit is usually reduced to account for the Carer’s Allowance received, rather than both benefits being paid in full. The calculation can also take account of earnings, rent, children or other responsibilities, savings and other income, so the final award will depend on the whole household’s circumstances.

Universal Credit may also include a carer element where a claimant provides regular and substantial care for someone receiving a qualifying disability benefit. This is separate from Carer’s Allowance. In some circumstances, a person can qualify for the Universal Credit carer element without receiving Carer’s Allowance, for example where the Carer’s Allowance earnings condition is not met. The rules relating to a foster child and the carer element should be checked before relying on it.

Fostering allowances and Carer’s Allowance have different purposes and are assessed under different rules. Fostering payments are intended to cover the costs and responsibilities of caring for a child placed with you, while Carer’s Allowance relates to providing care for a person with a qualifying disability benefit. Do not assume that receiving a fostering allowance proves entitlement to Carer’s Allowance, or that a Carer’s Allowance claim will be ignored because you foster.

When making a Universal Credit claim or reporting a change, give accurate information about:

• any Carer’s Allowance claim and the date it starts;
• fostering payments and other income;
• the person for whom you provide care;
• the disability benefit received by that person; and
• changes to your caring hours, earnings or household circumstances.

Keep decision letters and payment records, and report changes through your Universal Credit account where required. If Carer’s Allowance is awarded after a Universal Credit decision, the Universal Credit calculation may need to be revised. This can create an underpayment or overpayment, depending on the dates and information used.

Because fostering arrangements and disability-benefit rules can interact in complex ways, obtain an individual benefits check before applying or report the position to Universal Credit. Your fostering service can explain how fostering payments are recorded, while the Department for Work and Pensions or an independent welfare rights adviser can confirm whether you meet the Carer’s Allowance and Universal Credit carer-element conditions.