Direct payments
If you’re receiving care services, you might be offered direct payments by your local authority. This is a great option that puts you in control of your care services!
With direct payments, the money is paid directly into your bank account, giving you the flexibility to manage your care (and other services you need) in a way that works best for you. This means you can choose the care you need, such as hiring a care worker or purchasing necessary health equipment, instead of having the local authority or trust manage things for you.
Direct payments are available for:
- Disabled individuals aged 16 or over (with short or long-term needs)
- Disabled parents needing children’s services
- Carers aged 16 or over (including those with parental responsibility for a disabled child)
- Older adults requiring community care services
The amount you receive will depend on your needs assessment, and the funds must be used for specific care-related services. While it can be used for things like hiring a care worker, it can’t cover everyday expenses like food or utility bills. Rest assured, the local authority or trust will still be involved in your care, checking in with you regularly to ensure everything is running smoothly.
It’s also important to know that direct payments won’t affect any other benefits you might receive, so you can still get the financial support you’re entitled to.
Speaking of benefits, have you checked if you’re entitled to any? Even if you have savings, you might still be eligible for benefits like Attendance Allowance or Personal Independence Payment (PIP), which are not means-tested!
Attendance Allowance is available to those over State Pension Age who need help due to a disability. You could receive up to £108.55 per week based on the level of care you need.
Personal Independence Payment (PIP) is for those under State Pension Age who need long-term care at home. PIP is also non-means-tested, tax-free, and can provide up to £470.38 per month for daily living needs and up to £328.25 per month for mobility needs.
Don’t hesitate to get in touch with us to discuss your eligibility or any questions you have about managing your care services or benefits. We’re here to help make this process as easy as possible for you!
Industrial Injuries Disablement (IIDB)
If you’re disabled due to an accident at work or an illness caused by your job, you may be entitled to Industrial Injuries Disablement Benefit (IIDB). You could receive up to £221.50 per week. IIDB covers over 70 diseases, including asthma, deafness, and asbestos-related conditions.
This benefit is available to all people in the UK, except if you are self-employed. To qualify, the incident must have occurred in the UK, and your disability level will be assessed on a scale of 1 to 100 percent by a medical advisor. Generally, to be eligible, you must be assessed as at least 14 percent disabled.
Here’s how much you might receive, depending on your level of disability:
- 20 percent disabled: £44.30 per week
- 100 percent disabled: up to £221.50 per week
If you qualify for IIDB, you could also be eligible for Constant Attendance Allowance (CAA).
Constant Attendance Allowance (CAA)
Constant Attendance Allowance is for those who are ill or disabled due to an injury and need constant care. To claim CAA, you must be receiving either Industrial Injuries Disablement Benefit (IIDB) or a War Disablement Pension.
Your eligibility for CAA will automatically be considered during your IIDB medical assessment. Please note, you can’t claim CAA if you already receive Attendance Allowance, and it may affect your claim for other means-tested benefits.
The rates for CAA in 2024/25 are:
- Part day: £44.35
- Full day: £88.70
- Intermediate: £133.05
- Exceptional: £177.40
Carer’s Allowance (CA)
If you care for someone for at least 35 hours a week, you may be entitled to Carer’s Allowance (CA), which is £81.90 per week (£327.60 per month). If you’re under pension age, you’ll also get National Insurance credits towards your pension.
Eligibility Criteria for Carer’s Allowance:
- Care for someone at least 35 hours a week (you don’t have to live with them or be related)
- The person you care for receives a qualifying disability benefit
- Be at least 16 years old
- Don’t earn more than £151 per week after tax, National Insurance, and expenses
- Have lived in the UK for at least two of the last three years
- Not in full-time education (21+ hours per week)
- Not subject to immigration control
You don’t need to live with the person you care for, but they must receive one of the following disability benefits:
- Personal Independence Payment (daily living component)
- Disability Living Allowance (middle or highest rate)
- Attendance Allowance
- Constant Attendance Allowance (at or above normal maximum rate with IIDB or at basic rate with War Disablement Pension)
- Armed Forces Independence Payment
Carer’s Allowance is not means-tested but does have an earnings limit. It is taxable if combined income from work or pensions exceeds the tax threshold.
In Scotland, if you receive Carer’s Allowance, you will automatically receive Carer’s Allowance Supplement (CAS), which is a lump sum of £288.60 paid twice a year in 2024/25.
If you receive State Pension, you won’t get Carer’s Allowance but may receive additional Pension Credit or Housing Benefit.
Pension Credit for the 2024/25 Tax Year
Pension Credit is a means-tested benefit designed to provide extra income to those over State Pension age with a low income. It has two parts:
- Guarantee Credit:
- Single pensioners: Up to £332.95 per week
- Couples: Up to £502.90 per week
Guarantee Credit helps top up your income if it’s below a certain threshold. If you’re single, it will bring your income up to £218.15 per week. For couples, it will bring the joint income up to £332.95.
- Savings Credit:
- Single pensioners: Up to £19.04 per week
- Couples: Up to £19.04 per week
To qualify, your weekly income must be at least £189.80 if you are single or £301.22 for a couple.
Disability Premiums
Disability premiums provide additional financial support and can be added to other benefits such as Housing Benefit. There are three types of disability premiums, and you can receive more than one at the same time.
Disability Premium:
- £42.50 per week for singles
- £60.60 per week for couples
Severe Disability Premium:
- £81.50 per week for singles
- £163 per week for couples
To qualify, you must either be registered blind or receiving one of the following benefits:
Personal Independence Payment (PIP)
Disability Living Allowance (DLA)
Attendance Allowance
Constant Attendance Allowance
Severe Disablement Allowance
Incapacity Benefit
War Pensioners Mobility Supplement
Enhanced Disability Premium:
- £20.85 per week for singles
- £29.75 per week for couples
This premium is for those under Pension Credit age who receive certain benefits and are in the Employment and Support Allowance (ESA) support group.
ESA Support Group (Rates 2024/25)
The ESA support group is for people who are unable to return to work due to their disability or health condition. The weekly rate for someone in the support group is £138.20 per week (£90.50 rate + £47.70 support component).
To be eligible, you must have limited work capability, be under State Pension age, and not be receiving Statutory Sick Pay, Jobseeker’s Allowance, Income Support, or Universal Credit.
Council Tax Discounts and Exemptions
If you are receiving the daily living or mobility component of Personal Independence Payment (PIP), you could be eligible for a discount on your Council Tax bill, with the amount depending on your PIP rate.
Council Tax discounts apply in England, Wales, and Scotland. If you live in Northern Ireland, you may be eligible for reduced rates through the Rate Relief Scheme.
For more information, please contact us or explore the official resources related to the benefits and discounts available to you. We’re here to help!