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Why are earnings limited to £110 - claiming carers allowance - Carers UK Forum

Why are earnings limited to £110 - claiming carers allowance

All about money
Can someone clarify why i can only earn £110/week from working when claiming carers allowance. This seems to discriminate and limit me from trying to make ends meet!

I was recently dismissed from my employment for non-attendance due to caring responsibilities. Self-employed is my only option to keep available for my caring role - and now i find myself limited to earning less than £110/week. Why is it a hard line cut off and not a tiered reduction in allowance if i earn more.

I am in a position of having to turn down work because i would earn too much!!....or even worse - having to work for free to keep clients........this has to be wrong surely.

Who decides the £110 limit?
Why is there a set limit?
Has there been any previous 'legal challenges' to the set limit?

Any help or information would be greatly received.
Thank you.
Hi Ash,
I think it's to do with the amount considered to be the minimum someone can live on per week. So the CA and the £110.00 add up to that amount. It is a benefit not a wage. I can't claim it because I have a pension. Overlapping benefits.
However there is a lot you can off set against it. Go to the Help and Advice button at the top of this page, click on the finances square and then on Carers Allowance to see what you can pay for, out of your earnings, to bring the amount earned down to the £110.00 allowable. Like a car for work. Carers and so on. Especially a pension.

The easy answer is that they aren't. But you need to be as devious as a fox to use the rules to earn more.
I'm that fox: I have been testing the rules for years, and found that there are many ways around them: simply because the people who draft the rules are trapped in their own logical mind maze, and we aren't.

Earn £12,000 a year, for example, roughly £250 a week. Sure, you can still claim CA, as long as you play the rules. Discount income tax and NI, pay your next door neighbour's cousin to provide childminding/care, lease a car you need for work, pay a lot of money into your pension, and you are home and hosed.

If self employed, then the world is your oyster: earn £20,000 a year profit after expenses, pay your husband and child £9,000 a year each for secretarial and domestic help, and you are well below the earnings limit.

I didnt know any of this stuff until I started to study our MPs expenses. They are the real experts at using the system to their advantage.
Thanks for the replies from both Elaine & Scully,

Sorry it's taken a short while to reply to this. But then caring, working and life get in the way of a good fight don't they!!

I understand the many deductions that are allowed but still confused at why there is a set level in the first place.....surely if you are doing the caring role then you are entitled.

Using the CA + £110 max income limit as minimum to live on is discrimination surely.

I also have a previous occupational pension and I am still claiming CA.

If anyone knows of any previous governmental or DWP challenges to this (current) £110 limit, I would be interested to exchange notes. I'm currently 'drafting' a letter to my local MP (Stephen Phillips QC MP) and Parliamentary Under Secretary of State for Disabled People (Justin Tomlinson MP) to take the matter further.

Wish me luck.
Good luck. Don't fancy your chances though. CA is an 'Income replacement' entitlement, apparently. Quite how £50 a week after tax is supposed to replace my former income of £35,000 a year, I have yet to find out :D

Nevertheless, the loopholes are so wide that many people should be able to escape the £110 earnings threshold ... I just wish I had known earlier, I must have lost thousands before I read the small print.

I'm about to pick up my brand new luxury PCP lease car next week. The only reason I lease a fancy car rather than buy a second hand cheap one is to reduce my apparent earnings below the £110 limit. I'm almost tempted to get a logo on it: "Courtesy car provided by the DWP" lol
Cheers Scally,

Income replacement....i nearly fell off my seat laughing... :lol: ....just flicked through some old pay statements....I payed more tax a week than they (DWP) hand over to me for a month.......lifestyle/income difference is just another difficult adjustment to add to the mix.....but hey "cut your cloth" as they say.

Le DWP taxi........I like it... :lol:
Oddly enough, even when in regular employment I never dreamed that I would be running a brand new car with heated steering wheel and seats, and a fine-tuned Bose speaker system, all courtesy of the Chancellor of the Exchequer. Still, needs must, and somebody has to push out the earnings threshold to it's logical limit of absurdity, if only to prove how stupid all these rules are. I can earn £110 in an easy afternoons work: (and pay significantly more than that in direct and indirect tax per week on my occupational pension and other earnings) so how dare he suggest that that might diminish my ability to care for the other six days? The £110 earnings threshold is quite simply a super-tax on caring and working, and that is unacceptable and counter-productive, most especially coming from a government that claims to reward hard work and value family life.
I would love to ask what you mean Scally. (I'm a new member here). I have been trying to get 'permission' to do a bit of work for years, as I'm literally on my uppers! I was told once, that due to all the benefits we get (that's a laugh), that I am allowed to earn no more than £20 extra a week. However, someone then came back and told me that was wrong and that I am not allowed to earn a penny more than I am already getting! We are slowly going under at the moment, so I may have to consider giving up caring and going back into full-time work (at 57). Then of course I would have to pay an extortionate amount for carers to come in to replace me and they cost a lot more than I do. If you could enlighten me on these tricks of how to earn something from doing say, 20 hours a week, that would be a lot better for me, thereby letting me hold my head above water for a while longer.
Hi Gilbert- here is a link to another thread and if you scroll to the end of it Susie has put in links to the main advice on this issue so browse through the threads on the links at the end of this link
http://www.carersuk.org/forum/support-a ... 35#p329835
Gilbert_1607 wrote: If you could enlighten me on these tricks of how to earn something from doing say, 20 hours a week, that would be a lot better for me, thereby letting me hold my head above water for a while longer.
Aha! First thing to get is a Direct Payment, from social work, to provide you with respite, to enable you to employ some help, to enable you go out to work. This is triggered by a Carers Assessment, which is your statutory right. Obviously you have to be very direct and firm. Basically explain that you are only 57 ( a mere Spring chicken these days) and wish to work, to earn a living, which is your right, until you finally reach retirement age, which is about 75 for you young folk, lol
When you have done that ... get back to me .. Second thing is to get a job, obviously, and ideally one that is flexible and pays lots of non-taxable expenses. Employers are gasping for capable, responsible staff who can work flexibly - it is a huge asset in today's workplace. I am a social researcher, which sounds very fancy, but really all I do is drive around, look presentable, smile nicely, ask people questions off a script, and write down their answers into a laptop.