Martin Lewis' MSE warns DWP 35 hour rule will cost people £4,250 each
Martin Lewis' Money Saving Expert has issued a crucial update to people in one profession over a little-known 35-hour rule which could cost you THOUSANDS. The BBC Sounds and ITV star's team at MSE have issued the advice to carers.
MSE said: "530,000 carers miss out on up to £4,250 a year. This is a specific payment for some who act as unpaid carers - whether for a family member, spouse, child, or even someone they're not related to. Who's likely missing out?
"You must care for someone who usually gets Attendance Allowance, or some on Personal Independence Payment or Disability Living Allowance; spend 35+ hours a week helping with everyday tasks such as washing or cooking; and earn under £151/week or have a low State Pension."
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The amount paid is reviewed each year in April. If you receive certain other benefits, including a State Pension, you may not be able to be paid Carer’s Allowance, although it may still be worth you making a claim. Carer’s Allowance is not a means-tested benefit which means that it is not based on your income and capital (or any partner’s).
However, you can only be paid Carer's Allowance if your earnings from work are under a certain capped amount. Carers will only have to pay tax if they have other sources of taxable income such as occupational or personal pensions or part-time earnings, and if this combined income takes them over the threshold for paying tax.
Carer’s Allowance on its own is below this threshold. If you are paid Carer’s Allowance, it will count as income when your means-tested benefits are calculated. However your means-tested benefit calculations will include a carer premium, carer addition or carer element.
You may be eligible if you meet all the following conditions:
You look after someone who gets a qualifying disability benefit.
You look after that person for at least 35 hours a week.
You are aged 16 or over.
You are not in full-time education.
You don’t earn over £139 a week (after deductions).
You satisfy UK residence and presence conditions.