for the first time, and it is only when
you start this process that you realise
how complicated it can be.
Disability, income-related and carers benefits Few of us know enough about the intricacies of the benefits system to be able to understand how it might apply to our own situation. There is help available however, and the best thing to do is seek advice. Below is a brief summary of the main benefits that are available. Some of these may apply to the person you care for, while others you may be eligible for.
Employment and Support Allowance (ESA) Employment and Support Allowance (ESA) is paid if someone’s ability to work is limited by ill health or disability.
It came into effect on 27 October 2008. For new claimants after this time, it replaces both Incapacity Benefit and Income Support paid on the grounds of incapacity. ESA has much in common with these earlier benefits. It is composed of two allowances: contributory ESA (which is similar to Incapacity Benefit) and income-related ESA (which is similar to Income Support). The person you care for may be entitled to either one, or both, of these allowances.
If someone already receives Incapacity Benefit or Income Support
If the person you care for was already receiving Incapacity Benefit or Income Support paid on the grounds of incapacity when ESA was introduced, they will be reassessed for ESA.
This is known as the ‘work capability assessment’. If they are found to have ‘limited capability for work’ they will be moved onto ESA. If not, they will need to consider claiming another benefit, such as Jobseeker’s Allowance, or appealing against the decision.
The reassessment process started in April 2011, and it is expected that everyone will have been reassessed by 2014.
Until the person you care for has been reassessed, they will continue to receive Incapacity Benefit or Income Support, rather than ESA. They will also continue to come under the rules and conditions which applied to these benefits.
Though the majority of Incapacity Benefit and Income Support claimants should not be worse off on ESA, some groups of
claimants may be. If someone is in this position, once they have been moved onto ESA, they should receive
‘transitional protection’. This will bring their ESA up to the same level as their existing rate of Incapacity Benefit or Income Support. You can read more on ESA in the MS Society publication Benefits and MS available from the Information Team or to download from the website.
Disability Living Allowance (DLA)
Disability Living Allowance (DLA) is for people under 65 who need help to look after themselves and/or to get around because of a long-term illness or disability.
There are two components to this benefit:
The care component – paid to people who need help to look after themselves with, for example, washing and dressing. It can be paid at one of three different rates:
lower, middle or higher. If the person you care for receives the middle or higher rate of the care component, you may qualify for Carer’s Allowance.
The mobility component – paid to people who, because of their illness or disability, have difficulties walking. It is paid at one of two rates: lower or higher. Getting the higher rate of the mobility component can mean that the person you look after can get a Blue Badge for their car from the local authority, exemption from road tax and possible access to the Motability Scheme (see pages 38 and 41).The income and savings of the person you care for will not affect their claim for DLA.
Attendance Allowance
Attendance Allowance is for people aged 65 or over, who find it difficult to care for themselves because of a disability or long-term condition. The benefit is paid at one of two rates:
The lower rate
for people who have difficulties either during the day or at night
The higher rate
for people who have difficulties both during the day and at night
As with DLA, the income and savings of the person you care for will not affect their claim for Attendance Allowance.
Getting Attendance Allowance can also mean they receive extra Pension Credit, Housing Benefit, and Council Tax Benefit.
If the person you care for receives Attendance Allowance, you may qualify for Carer’s Allowance.
Income Support
Income Support is a means-tested benefit that works in the same way as income-related Employment and Support Allowance (ESA). To claim Income Support you will need to ring the Jobcentre Plus claim-line 0800 055 6688. You can also use the form available from your local Jobcentre Plus office.
Pension Credit
Pension Credit is currently for people over 60, although the qualifying age is gradually being raised in line with changes to women’s state pension age. This comprises a Guarantee Credit, calculated in a similar way to Income Support, and it includes an extra element called the Savings Credit.
Carer’s Allowance
If you are caring for someone who gets either Attendance Allowance or Disability Living Allowance care component at the middle or highest rate, you may be able to claim Carer’s Allowance. The person you care for does not have to live with you. To be eligible, you must:
be aged at least 16 (there is no upper age limit) spend at least 35 hours a week providing care have net earnings of £100 a week or less not be in full-time education
Before you claim Carer’s Allowance always check to see if the person you care for receives the severe disability premium or addition as part of their Income Support, Housing Benefit, Council Tax Benefit, Pension Credit or Employment and Support Allowance (ESA).
If they do, they may lose the premium or addition if you are awarded Carer’s Allowance. The rules are complicated, and it is advisable to seek further advice from a Citizens Advice Bureau . Your local MS Society branch support officer may also be able to help.
To claim Carer’s Allowance, you need form DS700, available from the Disability and Carers Service Benefit Enquiry Line (0800 88 22 00) or your local Jobcentre Plus office. You can also download a form from www.direct.gov.uk and search ‘carers’. If you are claiming Carer’s Allowance, you may be able to get this topped up by Income Support.
Your pension and Carer's Allowance
You can still claim Carer's Allowance if you are over 65.
However Carer's Allowance is reduced by the amount of the State Pension that you get and if your State Pension is worth more than the Carer's Allowance you may not receive any payment of the latter.
Sources of information and help
As you can see from the brief details given above, the benefits system is very complicated indeed, with your entitlement to some benefits dependent upon your entitlement to others, your income, your age and your contribution records. Do seek advice to make sure you don’t miss out on much needed income.
Carers UK produces a range of benefits factsheets.
The MS Society publications Benefits and MS and Claiming Disability Living Allowance are available free of charge by post or
i i
to download (www.mssociety.org.uk/
publications or call 020 8438 0799 weekdays 9am-4pm).
The Government’s Benefit Enquiry Line – 0800 88 22 00 – provides general advice on benefits.
Your local carers’ centre or carers’ outreach service should also be able to help you with detailed enquiries and can often help you to complete forms.
You can find a useful overview of the benefits system on www.direct.gov.uk
Your local Citizens Advice Bureau will be able to give you advice and help with the completion of forms.The Citizens Advice website ‘Advice guide’ provides information on your rights.
Other financial help
As well as making sure you are maximising your income with benefits, you may be able to reduce your outgoings by applying for:
a reduction in your Council Tax bill help with health costs such as dental treatment
financial help to adapt your home help with heating costs
Talk to someone at your local advice centre or carers’
centre to explore these and other options for managing your income and outgoings.
The MS Society can also provide grants to people with MS for essential items and services needed as a direct result of their MS, for which there is no health or social services funding available.
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Your future income
Being a carer often means taking a break from paid employment and this can impact upon your future income – in terms of savings but also pension entitlement. For instance, do you know if you are keeping up your National Insurance contributions towards your State Pension?
Does your current income allow you to pay into a personal or occupational pension?
If you are receiving Carer’s Allowance and are of working age, you should also be receiving Class 1 National Insurance credits each week. These help with later claims for contributory ESA or State Pension. If you are not entitled to Carer’s Allowance, your pension rights can be protected by Carer’s Credit. More information is available on www.direct.gov.uk – search for ‘caring and pension’.
Managing on a reduced income
If you are worried about getting into debt, or have built up some debts already, it is very important that you seek impartial advice as soon as you can. Be wary of the many companies out there offering what seems to be free and impartial advice about how to manage your current debts.
They may have a financial incentive to make you take up certain products. There is a useful guide to debt and money issues on the www.direct.gov.uk website.
FURTHER READING
Benefits and MS, Claiming Disability Allowance and Financial Assistance from the MS Society
MS Society publications are available free of charge by post or to download (www.mssociety.org.uk/publications or call 020 8438 0799 weekdays 9am-4pm)
A series of guides to managing your money are available from the Money Advice Service i
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