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Carers allowance and tax credits - advice please

(6 Posts)
TheYearOfTheCat Mon 23-Aug-10 20:20:38

I am hoping someone will be able to help.

My friend's DD has just been diagnosed with dysplasia of the hip, which will involve surgery and being in a full body cast for at least 8 months.

We were talking about what help she could potentially get. She is planning to apply for DLA, but someone has told her that if she applies for carers allowance, she and her DH will lose their tax credits as it would put their income over 16k. Is this correct?

The H works full-time, and they have 2 DC. She doesn't work at the moment.

Perhaps the info is too vague to be able to say, but even if anyone could point me in the right direction for my friend to get some knowledgeable advice on the subject it would help.

TIA

5inthebed Mon 23-Aug-10 20:23:22

To get carers allowance your friends DD will need to get middle or higher ratecare DLA. If their DD receives MRC or HRC then their tax credits will increase as well.

Does your friend receive any form of income/benefits other than FTC or CB? They do count CA as an income so will go against their annual combined income.

TheYearOfTheCat Mon 23-Aug-10 20:35:50

Thanks. I think she has been advised by her consultant that she is likely to get the higher rate of DLA. I don't think my friend was aware that tax credits would increase as well.

I really feel for her. Her mind is just spinning with so much to deal with.

As far as I know, there is no other income. They own their own home.

5inthebed Mon 23-Aug-10 21:01:58

This is off the CAB it:

Rates of Child Tax Credit
Maximum amount of Child Tax Credit from 6 April 2010
For each disabled child £2,715
For each severely disabled child £1,095

HTH

busymum34 Fri 24-Jun-11 16:52:29

The carers allowance is classed as income. But tax credits will go up if she is awarded middle or higher rate care so will most probably get lots more.

busymum34 Fri 24-Jun-11 16:53:43

sorry, just noticed how old this thread is blush

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