DWP alert as little-known rule could cost you over £4,500 a year

DWP alert as little-known rule could cost you over £4,500 a year

Brits have been urged to familiarize themselves with Department for Work and Pensions (DWP) rules as they could face a significant drop in income when they reach a crucial date. Experts have raised concerns that not enough individuals are aware that their entitlement to Carer’s Allowance is likely to cease once they begin claiming their state pension.

This means that if you’re unaware of this key date, you could suddenly lose the benefit, which provides £81.90 per week, or £4,258.80 annually. The rules state that you cannot get any Carer’s Allowance while receiving the state pension if your pension payments exceed £81.90 per week.

This contrasts with working-age claimants who can receive Carer’s Allowance provided they earn less than £151 per week after tax, National Insurance and expenses have been deducted. Suzanne Bourne, care expert at Mobilise, commented: “Understanding the rules and regulations around what you’re entitled to as an unpaid carer can be incredibly complicated.

Your benefits could suddenly stop because of a little-known DWP rule -Credit:Getty

“Unpaid carers, who already have a huge amount to contend with, must wade through admin sludge to claim support such as Carer’s Allowance. On top of that, they then have to be aware that those payments will stop as soon as you start to receive the state pension.

“It’s not a well understood element of the Carer’s Allowance rules and can catch people by surprise. It’s vital to know that this cliff edge exists and to plan your finances around it.” People receiving a state pension of less than £81.90 per week can claim Carer’s Allowance to supplement their income up to this amount.

Ms Bourne also suggested that even if your state pension exceeds this sum, it could still be beneficial to apply for the allowance. She elaborated: “If it’s more than £81.90 per week, you should still go through the process of applying for Carer’s Allowance, as you may be assessed as having ‘underlying entitlement’.

“This implies that the state acknowledges your need for additional financial support, which could result in an increase in other benefits you’re currently receiving.”

“Pensioners with lower incomes should also consider applying for pension credit, which can provide additional payments to help with living expenses.” The full new state pension is presently £221.20 a week, while the full basic state pension pays £169.50 a week.