Martin Lewis’ MoneySavingExpert (MSE) is warning that thousands of UK households are missing out on a free handout worth up to £4,250 per year.
The warning comes after the Office for National Statistics last week announced that UK Consumer Price Index inflation has dropped to its lowest level since April 2021, falling to 1.7% in September.
The government typically uses this figure to calculate benefit increases for April next year, when claimants look set to see a boost to their incomes.
But MSE says that billions of pounds in benefits goes unclaimed each year as many workers and pensioners often don’t realise they’re entitled to claim extra cash.
One of the main benefits that goes unclaimed, according to MSE, is Carer’s Allowance, with an estimated 530,000 carers missing out on up to £4,250 per year.
The payment is issued by the Department for Work and Pensions (DWP) to people who look after someone else.
If you care for someone at least 35 hours per week, and they get certain benefits, you could get £81,90 per week, giving you a monthly income boost of around £327.
You don’t have to be related to, or live with, the person you care for to qualify, but they must already be getting one of these benefits:
Personal Independence Payment – daily living component
Disability Living Allowance – the middle or highest care rate
Attendance Allowance
Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit
Constant Attendance Allowance at the basic (full day) rate with a War Disablement Pension
Armed Forces Independence Payment
Child Disability Payment – the middle or highest care rate
Adult Disability Payment – daily living component at the standard or enhanced rate
You need to spend at least 35 hours a week caring for someone, such as helping them with washing and cooking, taking them to doctor’s appointments, or helping with household tasks, such as managing bills and shopping.
You also must be aged 16 or over, living in England, Scotland or Wales, and have earnings of £151 or less per week after tax, National Insurance and expenses. Additionally, the DWP adds that you must NOT:
be in full-time education
be studying for 21 hours a week or more
be subject to immigration control
If you share care responsibilities with another person then only one of you can claim the allowance. The DWP says you can still apply, but it will decide who should receive the benefit.
It’s worth noting that for each week you get Carer’s Allowance you’ll automatically get National Insurance credits and may also qualify for other support, including a Council Tax Reduction, Universal Credit if you’re on a low income or unemployed, or Pension Credit.
You can apply for the benefit online via GOV.UK and you can backdate your claim by up to three months.