Employment & Labor

#2026/681Carer’s Allowance Reassessment Payments Disregarded for Means-Tested Benefits

🇬🇧United Kingdom··Other·Medium Impact·View source ↗

AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.

🇬🇧 English

This law prevents certain Carer’s Allowance recalculation payments from counting as capital when people are assessed for Universal Credit, Housing Benefit, and State Pension Credit. It affects carers who receive payments from the Secretary of State after Carer’s Allowance is recalculated following the Independent Review of Carer’s Allowance Overpayments. The practical effect is that these payments should not reduce or block access to the listed means-tested benefits.

AI-generated summary. May contain errors. Refer to official sources for legal decisions.

Key Changes

  • Adds Carer’s Allowance recalculation payments to the capital disregards for State Pension Credit.
  • Adds the same disregard for Housing Benefit, including the rules for people over State Pension Credit qualifying age.
  • Adds the same disregard for Universal Credit assessments.

Obligations

What this law requires

medium

From 16 July 2026, disregard any payment made by the Secretary of State following a recalculation of Carer’s Allowance in consequence of the Independent Review of Carer’s Allowance Overpayments report dated 21 July 2025 when calculating income from capital for State Pension Credit.

State Pension Credit assessing authoritiesbenefit decision makers
From 16 July 2026
operational
medium

From 16 July 2026, disregard any payment made by the Secretary of State following a recalculation of Carer’s Allowance in consequence of the Independent Review of Carer’s Allowance Overpayments report dated 21 July 2025 when assessing capital for Housing Benefit.

Housing Benefit authoritieslocal authority benefit administrators
From 16 July 2026
operational
medium

From 16 July 2026, disregard any payment made by the Secretary of State following a recalculation of Carer’s Allowance in consequence of the Independent Review of Carer’s Allowance Overpayments report dated 21 July 2025 when assessing capital for Housing Benefit claims by persons who have attained the qualifying age for State Pension Credit.

Housing Benefit authoritieslocal authority benefit administrators
From 16 July 2026
operational
medium

From 16 July 2026, disregard any payment made by the Secretary of State following a recalculation of Carer’s Allowance in consequence of the Independent Review of Carer’s Allowance Overpayments report dated 21 July 2025 when assessing capital for Universal Credit.

Universal Credit decision makersDepartment for Work and Pensions benefit administrators
From 16 July 2026
operational

Affected Parties

Carers receiving Carer’s Allowance recalculation paymentsUniversal Credit, Housing Benefit, and State Pension Credit claimants+1 more…

Tags

social security,carers allowance,means-tested benefits