Britons have been warned to read up on the DWP rules as their income could sharply fall when they reach a key date.
Experts have warned that not enough people know that a person’s entitlement to Carer’s Allowance will likely end when they start to claim their state pension.
This means if you are not aware of this important date you could suddenly lose the benefit, which pays £81.90 a week, or £4,258.80 a year.
Under the current rules, you cannot get any Carer’s Allowance while receiving the state pension, if your pension payments are more than £81.90 a week.
This differs from working age claimants, who can get Carer’s Allowance as long as they earn under £151 a week, after tax, National Insurance and expenses are deducted.
Suzanne Bourne, care expert at Mobilise, said: “Understanding the rules and regulations around what you’re entitled to as an unpaid carer can be incredibly complicated.
“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.”
Those whose state pension is less than £81.90 a week can claim Carer’s Allowance to top up their income to this amount. And Ms Bourne said it may be worth claiming the benefit even if your state pension is above this total.
She explained: “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 means the state recognises you’re in need of additional financial assistance and it could lead to a boost in other benefits you’re receiving.
“Pensioners on lower incomes should also explore applying for pension credit, which can unlock extra payments to support you with the cost of living.”
The full new state pension is currently £221.20 a week while the full basic state pension pays £169.50 a week.
