[phpBB Debug] PHP Warning: in file [ROOT]/phpbb/session.php on line 585: sizeof(): Parameter must be an array or an object that implements Countable
[phpBB Debug] PHP Warning: in file [ROOT]/phpbb/session.php on line 641: sizeof(): Parameter must be an array or an object that implements Countable
Giving Up Carers Allowance - Carers UK Forum

Giving Up Carers Allowance

All about money
I've got an interview this week for a new job and it will take me over the threshold. If I get the job the contract will start on September 1st . My carers allowance is due to be paid on September 3rd. I have a couple of questions.

1. Do I notify them as soon as I get offered the job or when I start?
2. If I notify them before will they stop my payments or give me a lower final payment.
3. If I notify them after will they send me an amount that I have to repay or will be it taken from my first wages
Do crunch the numbers before you make the decision to give up CA. Obviously, if your new job is fabulously paid, and CA sinks into 'small change' (!!) then it's a no brainer.

However, for many folk, the difference is not that great. So the decision is harder.

For that reason, there is quite a lot of helpful gen on the forum about how to 'take down' the earned income so that you could still qualify for CA. For example, you can pay into a pension - which is really just a savings account, and then that alone might be enough to stop you 'disqualifying' from CA.

Others here know more than me, and I'm sure they'll be filling you in with factors you could 'crunch' to see whether you could continue with CA even while working apparently 'over the limit'.
https://www.carersuk.org/forum/support- ... week-21683

One of the most informative threads on the whole forum.
In answer to questions actually asked:

1) I informed DWP of permitted work (well under threshold) when I got my employee agreement, using online 'report a change in circumstances.' Given aggressive phone call after this from over zealous lackey which resulted in her putting phone down on me and threatening to suspend my benefit (which was exceeding her authority), I'd say nowt until day started my job.

2) See above. Wait until you start work.

3) Certainly wouldn't deduct it from wages. Speculating, as I understand CA payment is one week in advance and three weeks in arrears then may ask for one week (approx) payment back.

So the job is for £150 per week but I will be paying into a local government pension so my take home pay will be roughly £141.64 a week.

The only other deductions would be a private pension so that would be have to be £43 a week to gain back £64 a week.

Not sure that's worth the hassle.
Worth exploring Additional Voluntary Contributions to LA pension to try bring you under threshold?

Pensions experts on here can tell rest us if that would work or not. :-???
Don't forget if you put £100 into a personal pension you get £25 back on it so becomes £125.00. Definitely worth doing- not sure my figures are bang up to date but something like that.

Edited £20 not £25 as now 20 %
It's not worth my while though if I'm going to have to put loads into a pension just to get carers allowance back. I've got childcare to pay for too for my little girl so i need to make sure I've got money spare.
I've had a look at this more closely and it definitely is worth doing.

From the figures you have given earnings £150.00 per week are over the allowable earnings of £116 per week by £34.00

You therefore need to pay double the difference into a pension fund so tatal pension contributions you personaly make are £68.00. I have checked tax relief is currently 20% so if you pay basic rate income tax you get £81.60 per week accrueing into a pension fund.

This is costing you the difference between paying in and getting CA or not bothering to do it the sum of £3.40 per week (£68.00 less £CA which is £64.60.

So in effect you are spending £3.40 each week to beat the system and aquire a small pension for latax allater on. Well worth doing. (over £4,000 in a year) x the number of years you will be caring all for £3.40 per week.

If you don't earn enough to get the tax allowance on your pension, the pension would still be £3,500 a year
Kathrina, who are you caring for? Is it a parent, or a spouse?

It can make a significant difference. If a parent, however long they live, your lifetime is likely to be a lot longer than theirs, ie, you will live to collect your pension, so the length of time you will actually NEED carers allowance is a lot lot less than if it is your spouse you care for (unless, sadly, they have a life-limiting condition).

Also, whilst I understand the need to have some 'emergency savings', and not want those 'locked away' in a pension pot, the new pension freedoms do mean the 'lock' is less draconian than it used to be.

I do appreciate that whilst a carer, it's hard to think long term, and it's hard for most of us anyway to think about pensions when we are young (!), but they are good ways to save, and we all know that the state pension is likely to recede ever further into the distance with every generation - my grandchildren probably won't get theirs till they are a hundred years old!!!