UC benefit cap for mixed age couple and carers allowance query

Two queries with this. I think I am missing something totally obvious but without anyone to bounce this off I turn to rightsnet!

Client is under SP age by a few years, husband over. They get UC, husband gets AA -

Standard Allowance £594.04
Housing - £301.96
Carer - £162.92
Total - £1058.92

Deductions -

Husband SP - £379.90
Other income (I think this is a private pension) - £324.94
UC Advance repayments - £47.70 (due to end 30/06/21)
Housing - £301.96
Total - £1054.50

Total UC award - £4.42

Question 1 - client doesn’t claim Carer Allowance, it makes sense to claim this doesn’t it? Although it get deducted off the UC she only loses £4 (she isn’t bothered about free dentists etc). Would it cause any problems with the UC advance repayments at all? Feel like I might be missing something here!

Question 2 - the UC helpline told me that there is a benefit cap deduction due to start on 23rd December. They couldn’t see how much it would be. Anyone know why this would be the case? They get Carer Element and husband gets Attendance Allowance this makes them exempt doesn’t it?

Thanks for any pointers!

1) They would be losing £52, not £4, as you have to remove the effect of the advance repayments, as they will still have to paid back. They would still be better off though.
However, they should also be entitled to the LCWRA element (see para 5 of Schedule 9 to the UC Regs), although perhaps they are still in the waiting period. Once that is in payment, there won’t be much gain from claiming Carers Allowance, although it is still worth claiming as it does give Class 1 NI Credits (whereas UC only gives Class 3 credits).

2) Thehelpline are probably just seeing on their system that a 9 month grace period is ending. Their benefit income is anyway far too low for the cap to have had any effect.

Why aren’t they being paid the LCWRA element with the UC award?

Para. 5 of Schedule 9 of the Universal Credit Regulations 2013 should apply.

SCHEDULE 9
Circumstances in which a claimant is to be treated as having limited capability for work and work-related activity

Disabled and over the age for state pension credit
5.  The claimant has reached the qualifying age for state pension credit and is entitled to attendance allowance, the care component of disability living allowance at the highest rate or the daily living component of personal independence payment at the enhanced rate.

Ah that is the bit I was missing, I did not consider the LCWRA would apply here due to the pension age.

Yeah I usually apply for carer allowance anyway as there is nothing to lose and better NI payments and weekly payments can be useful, I just wasn’t sure if it would cause issues with the advance repayments if they added other deductions, whether UC wouldn’t be able to reclaim the advance due to all the other deductions including carer allowance.

That makes sense about the 9 month grace period, that solves that query.

Thanks Charles

Not sure Paul, I wonder if like Charles said they are still in the 3 month waiting period. I can’t get hold of client to check now but if the advance repayments are due to stop 30th June 2021 that means the claim probably started 30th June 2020 so LCWRA should go on at the end of this month right?

Yes that would be about right I think. Might be worth checking whether there was any ESA in payment before UC award and if so, whether UC claim was made before ESA ceased as that would enable LCWRA element to be paid from the start of UC award. I really can’t see why someone treated as having LCWRA due to receiving a qualifying disability benefit actually should serve a 3-month waiting period but there you go, that seems to be the rules.

Charles - 04 September 2020 10:44 AM

.. claiming Carers Allowance, although it is still worth claiming as it does give Class 1 NI Credits (whereas UC only gives Class 3 credits).

For someone close to pension age themselves the different class of NI may not be particularly advantageous in itself. However claiming CA now would mean that would stand them in good stead when they do reach pension age if the couple will then be claiming Housing Benefit and or Pension Credit as (unlike UC) there needs to be an entitlement to CA to get the carer premiums included in the calculations.

Good points, thanks everyone.

Hi,

Regarding the LCWWRA Element with an entitlement to Attendance Allowance, as per Schedule 9 (5) of UC Regulations 2013, there is not “assessment phase” applicable in this case.

The LCWWRA Element should have been applied and I would escalate the case to have it included in the claim as soon as the partner who is in receipt of AA reached state pension age / pension credits age.

He does not have to go through the Work Capability Assessment (for obvious reasons) and therefore the ‘assessment phase’ to access the LCWWRA Element does not apply.

The partner can have the Carer Element either with a claim for Carer’s Allowance or if earning too much (i.e. over the net earnings threshold) still eligible for it as long as providing at least 35 hours care in addition to work, i.e. partner meets the ‘caring condition’.

Michele_J - 08 September 2020 11:20 AM

Hi,

Regarding the LCWWRA Element with an entitlement to Attendance Allowance, as per Schedule 9 (5) of UC Regulations 2013, there is not “assessment phase” applicable in this case.

The LCWWRA Element should have been applied and I would escalate the case to have it included in the claim as soon as the partner who is in receipt of AA reached state pension age / pension credits age.

He does not have to go through the Work Capability Assessment (for obvious reasons) and therefore the ‘assessment phase’ to access the LCWWRA Element does not apply.

The partner can have the Carer Element either with a claim for Carer’s Allowance or if earning too much (i.e. over the net earnings threshold) still eligible for it as long as providing at least 35 hours care in addition to work, i.e. partner meets the ‘caring condition’.

This is not correct. The 3 month waiting period still applies. See here for exceptions to the waiting period, which does not include cases where someone is treated as having LCWRA.

I don’t think they can get Carer and LCWRA, wouldn’t they each have to be eligible for both elements in their own right. Otherwise they pay the highest amount element right?

he would have the LCWRA on his side and she would have the CE on her side

so both can be on the claim

JAS1 - 08 September 2020 11:55 AM

I don’t think they can get Carer and LCWRA, wouldn’t they each have to be eligible for both elements in their own right. Otherwise they pay the highest amount element right?

Older partner entitled to LCWRA element, whereas younger partner can establish entitlement to carer element. It’s cases where someone potentially has entitlement to both themselves that they can’t be paid together.

Ah yeah course, I get you.

Think I was thinking of when each member of a couple both qualifies for both elements, they get one each then I believe.