Carer's Allowance Update: New Payment Available in Scotland - Who is Eligible?

The Department for Work and Pensions (DWP) has announced updates to the Carer’s Allowance claim process, advising those residing in thirteen council areas in Scotland to apply for a new devolved payment instead. This new payment, known as Carer Support Payment, is administered by Social Security Scotland and is gradually replacing Carer’s Allowance for nearly 89,000 individuals north of the border. The new benefit is worth £81.90 per week, the same as Carer's Allowance, and has the same weekly earnings limit of £151.

Carer Support Payment is not available to current claimants of Carer’s Allowance; they will have their existing awards transferred over to Social Security Scotland in stages. The transition began in February 2024, with a target completion date of Spring 2025.

Eligibility for Carer Support Payment

To be eligible for Carer Support Payment, individuals must meet the following criteria:

They must be 16 or over.
They must spend at least 35 hours a week caring for someone.
They must have been in Scotland for at least two of the last three years, unless they are a refugee or have humanitarian protection status.
They cannot be in full-time education, studying for 21 hours a week or more, or subject to immigration control.
Their earnings must be £151 or less per week after tax, National Insurance contributions, and expenses.

Special Backdating Rules for Carer Support Payment

New regulations include special backdating rules for Carer Support Payment. This means those who are not eligible for Carer’s Allowance but are eligible for Carer Support Payment can apply to have their payments backdated to the date Carer Support Payment first became available in their area. This is to ensure that carers do not miss out on money they are entitled to due to living in an area included in the later phases of the rollout.

The main beneficiaries of this rule are:

Carers aged 16-19 in full-time “advanced” education (such as university).
Carers aged over 20 in full-time education at any level.

To receive fully backdated payments, carers must apply within 13 weeks of the benefit becoming available in their area. For instance, the deadline for carers in Angus, North and South Lanarkshire is September 22, 2024.

Who Gets the Extra Payment?

The Scottish Government has issued nearly 89,000 one-off payments of £288.60 to individuals receiving Carer’s Allowance at the start of the summer. This is known as the Carer’s Allowance Supplement, totaling £25.6 million in payments, and is only available to those claiming the benefit who live in Scotland. The payments acknowledge the important contributions made by carers.

To qualify for the next automatic devolved payment in December, individuals must be in receipt of either Carer’s Allowance from the DWP or the newly launched Carer Support Payment from Social Security Scotland by October 7, 2024.

Key Takeaways for Carers

Carer Support Payment is replacing Carer's Allowance: The transition is gradual, with the transfer of existing awards from the DWP to Social Security Scotland occurring in stages until Spring 2025.
The payment amount and eligibility criteria remain the same: Both Carer's Allowance and Carer Support Payment are worth £81.90 per week and have a weekly earnings limit of £151.
New claimants in designated areas must apply for Carer Support Payment: If you live in one of the 13 pilot areas in Scotland and are newly eligible for Carer's Allowance, you must apply for Carer Support Payment.
Backdating rules benefit those in full-time education: Carers aged 16-19 in full-time “advanced” education, and those over 20 in full-time education, can apply for backdated payments.
Carers are urged to apply even if the new payment is not available in their area: To avoid missing out on financial support, carers who are not yet eligible for Carer Support Payment are encouraged to apply for Carer's Allowance from the DWP.

A Vital Contribution

The work of unpaid carers is crucial to the well-being of those they support and to society as a whole. The Scottish Government recognizes the vital role these individuals play and is committed to ensuring they receive the financial support they deserve.

With the gradual implementation of Carer Support Payment and the accompanying changes to the claim process, the Scottish Government aims to streamline support for carers while recognizing their invaluable contributions to Scottish communities.