Carer s Allowance 6. Disability Living Allowance (DLA) 8. Attendance Allowance 10. Employment Support Allowance (ESA) 12.

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1 Caring and Resources RB:NEC 8/5/09 11:05 Page 1 CARING AND RE SOURCE S 1 Contents About Caring and Resources 4 About entitlements and benefits... 6 Carer s Allowance 6 Disability Living Allowance (DLA) 8 Attendance Allowance 10 Employment Support Allowance (ESA) 12 Tax credits 15 Disabled Child Premium 17 Caring and your pension 17 Home Responsibilities Protection 18 HM Armed Forces 19 At home Council Tax reduction for carers 20 Housing Benefit 22 Community Care Grants 25 Direct payments for carers 27 Getting around Motability 30 Blue Badge scheme 31 The Disabled Person s Railcard 34 Visiting places 35 Caring and work Working and caring your legal rights 36 Working Tax Credit 39 Job Grant 40

2 Caring and Resources RB:NEC 8/5/09 11:05 Page 2 2 CARING WITH CONFIDENCE Managing money About bank accounts 43 Credit unions 44 Income and expenditure 44 Dealing with debt 47 Savings and investments 49 My Plan 50 Information and advice 52 Getting started 52 Finding local services and support 56 Organisations 57 Reading 64 Caring with Confidence 2009 All rights reserved. Copyright in the Caring with Confidence programme is vested in the Department of Health (DH). The provision of this booklet entitles you to its non-exclusive use for your own benefit as a carer. It is a term of the supply of the booklet that it is not to be disclosed to other parties, reproduced in whole or in part, amended or altered in any way, stored in a retrieval system, or transmitted by any means, electronic, mechanical, photocopying, recording or otherwise or translated into other languages without the express agreement of the DH or the Caring with Confidence national team, such agreement to be evidenced in writing. The booklet must not be passed on, shared with other parties or reproduced for commercial gain. The DH or the Caring with Confidence National Team shall have no liability as a result of reliance on any information contained in the programme by any person who did not acquire it directly from the Caring with Confidence National Team. Acknowledgements Material in this booklet has been adapted from information available on the Directgov website: My Plan storyboard is adapted from 100 Day Plan by Creative Exchange

3 Caring and Resources RB:NEC 8/5/09 11:05 Page 3 CARING AND RE SOURCE S 3 This Caring and Resources booklet is yours to keep. You might want to use it after the session as a reminder and to help you in your day-to-day caring role. At the end of the booklet there is an extensive list of sources of information and advice for you to follow up when you re ready to do so. If you want to know more about Caring with Confidence, go to our website: On the website, you ll find more information about the programme, as well as further sources of information and tips on using the internet and getting information over the phone. You can also contact your local Caring with Confidence provider for further information:

4 Caring and Resources RB:NEC 8/5/09 11:05 Page 4 4 CARING WITH CONFIDENCE About Caring and Resources This Caring with Confidence session was about coping with all the financial issues that carers face. The aim was to give you all the information you need to find out about and apply for the benefits, grants and other financial support and services that you and/or the person you care for are entitled to. The session aimed to help you to: feel more confident about dealing with money gain an overall picture of key money matters for carers know the main benefits you are entitled to as a carer be aware of other resources for you or the person you care for explore ways to tackle financial issues. This resource pack is in five sections: About entitlements and benefits the financial help you can get to help you in your caring role or to help the person you care for At home help to cut the cost of running your home Getting around allowances and schemes to help with getting about outside the home Caring and work help to continue working alongside your caring role Managing money ideas for managing money more efficiently You can also find out more online at: Health warning! The information contained in this booklet is correct at the time of writing, but be aware that the details of benefits, allowances, tax credits, and other financial support may change. Visit the government s website or contact the organisations listed at the end of this booklet for up-to-date information.

5 Caring and Resources RB:NEC 8/5/09 11:05 Page 5 CARING AND RE SOURCE S 5 Is there any financial issue that is causing you particular problems at the moment? Perhaps you re unsure about whether you re entitled to Working Tax Credit, or wondering how to go about getting a Blue Badge for the person you care for. Or you might be wrestling with difficult debt issues. Write your issue in the box below. You may find a simple answer in this booklet or it may be a more complex problem that you have to sort out in stages, perhaps by using the My Plan planning tool later in this booklet.

6 Caring and Resources RB:NEC 8/5/09 11:05 Page 6 6 CARING WITH CONFIDENCE About entitlements and benefits... Carer s Allowance Disabled Living Allowance (DLA) Attendance Allowance Employment and Support Allowance (ESA) Tax Credits Disabled Child Premium Caring and your pension HM Forces Carer s Allowance Carer s Allowance is a taxable benefit to help people who look after someone who is disabled. You do not have to be related to, or live with, the person you care for. Who can get Carer s Allowance? You may be able to get Carer s Allowance if you re aged 16 or over and spend at least 35 hours per week caring for a person who gets: Attendance Allowance Disability Living Allowance at the middle or highest rate for personal care Constant Attendance Allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit, or basic (full day) rate with a War Disablement Pension Who can t get Carer s Allowance? You can t get Carer s Allowance if you re in full-time education with 21 hours or more a week of supervised study or earn more than 95 a week after certain deductions have been made (such as Income Tax).

7 Caring and Resources RB:NEC 8/5/09 11:05 Page 7 CARING AND RE SOURCE S 7 How much do you get? The weekly rate is (from April 2009). It may be less, depending on what other benefits (including State Pension) you receive. If you receive certain other benefits at or more a week, Carer s Allowance can t be paid to you as well. You may have to pay tax on the amount you receive. You may be able to get an additional amount for your husband, wife or civil partner or someone living with you who looks after your dependent children. How it s paid Carer s Allowance is normally paid directly into any account of your choice which accepts Direct Payment of benefits (a bank, building society or other account provider). If you want someone else to collect your Carer s Allowance, contact your account provider. If you d like more information about how you can be paid by other means contact the Carer s Allowance Unit details are in the How to claim section. Effect on other benefits and entitlements Claiming Carer s Allowance may affect any other benefits, allowances, pensions and entitlements you, or the person you care for, are receiving. There is more detail about possible effects on the website: CarersAllowance/DG_ How to claim There are many ways you can claim: Contact your local benefits office Claim online at: Contact the Carer s Allowance Unit: Address: Palatine House, Lancaster Road, Preston PR1 1HB Phone: Textphone: (Mon Thurs 9 5, Fri ) cau.customer-services@dwp.gsi.gov.uk Tell them if you need a claim form in Welsh, Braille, large print or on audio tape. If your first language is not English ask for information about the interpreter service.

8 Caring and Resources RB:NEC 8/5/09 11:05 Page 8 8 CARING WITH CONFIDENCE Call the Benefit Enquiry Line for a claim form and advice on how to fill it in. Phone: Textphone: (Mon Fri , Sat 9 1). Get in touch with any Jobcentre Plus office or Pension Centre find the phone number or address in the phone book You can also download help notes and a claim form to print off and complete from the Directgov website Changes in circumstances for you or the person you are caring for Changes to your circumstances and those of the person you care for can affect your eligibility for Carer s Allowance or the amount you get. For example: changes to your income or employment, if you go into full-time education or take a break from caring. Making a complaint about the Disability and Carers Service (DCS) If you re unhappy with the service the DCS has provided, contact the office dealing with your claim to make a complaint. The address will be at the top of any letters the DCS sent to you. If you re not sure which office to contact, phone: DLA and AA Helpline: Carer s Allowance Unit: This procedure is different from the process to be followed if you think a decision about your benefit claim is wrong. Disability Living Allowance (DLA) Disability Living Allowance sometimes referred to as DLA is a tax-free benefit for children and adults who need help with personal care or have walking difficulties because they are physically or mentally disabled. Who can get Disability Living Allowance? You may get DLA if: you have a physical or mental disability, or both your disability is severe enough for you to need help caring for yourself or you have walking difficulties, or both

9 Caring and Resources RB:NEC 8/5/09 11:05 Page 9 CARING AND RE SOURCE S 9 you re under 65 when you claim (if you re aged 65 or over, you may be able to get Attendance Allowance). You can get DLA whether or not you work. It isn t usually affected by any savings or income you may have. How much do you get? DLA has two parts or components : a care component if you need help looking after yourself or supervision to keep you safe a mobility component if you can t walk or need help getting around. Some people will be entitled to receive just one component; others may get both. The care component and mobility component are paid at different rates depending on how your disability affects you. For more details go to: Then >Disabled People > Financial Support > Disability Living Allowance > Rates and how to claim. How it s paid DLA is normally paid directly into any account of your choice which accepts Direct Payment of benefits (a bank, building society or other account provider). If you want someone else to collect your DLA, contact your account provider. Effect on other benefits and entitlements If you start to get DLA it might increase the amount of other benefits or credits you re entitled to, such as Income Support, Pension Credit, Housing Benefit, Council Tax Benefit, Working Tax Credit and Child Tax Credit. DLA is normally ignored as income for working out these income-related benefits and credits. How to claim You can claim online or you can get a claim pack by: phoning the Benefit Enquiry Line (Phone: Textphone: ) contacting your local Jobcentre Plus office or local social security office downloading the form from the Directgov website (

10 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE What else you need to know A claim for DLA may be referred for medical examination. If you have a progressive disease and you re not expected to live for more than another six months there are special rules for claiming to make sure you get your benefit more quickly and easily. Changes to your circumstances can affect the amount of DLA you get or whether you get it for example, a stay in hospital or if your disability gets worse or better. To get Disability Living Allowance you must generally be in Great Britain or treated as living here, and meet certain other conditions about your residence and presence. Attendance Allowance Attendance Allowance is a tax-free benefit you may get if you re aged 65 or over and need help with personal care because you re physically or mentally disabled. Who can get Attendance Allowance? You may get Attendance Allowance if any of the following apply: you have a physical or mental disability, or both your disability is severe enough for you to need help caring for yourself you re aged 65 or over when you claim. If you re under 65, you may get DLA. Attendance Allowance isn t usually affected by any savings or income you may have. How much do you get? The amount you get depends on how much your disability affects you. There are two rates of Attendance Allowance: Attendance Allowance Weekly rate (tax year ) Higher rate Lower rate These rates change from April 2009

11 Caring and Resources RB:NEC 8/5/09 11:05 Page 11 CARING AND RE SOURCE S 11 How it s paid Attendance Allowance is normally paid directly into any account of your choice that accepts Direct Payment of benefits (a bank, building society or other account provider). If you want someone else to collect your Attendance Allowance, contact your account provider. Effect on other benefits and entitlements If you start to get Attendance Allowance, it might increase the amount of other benefits and financial support you re entitled to. You may get an extra amount for severe disability with: Housing Benefit Council Tax Benefit Pension Credit. Attendance Allowance is normally ignored as income for working out income-related benefits and other entitlements. How to claim You can claim online or get a claim pack by: phoning the Benefit Enquiry Line (Phone: Textphone: ) downloading the form from the Directgov website ( What else you need to know You won t usually need a medical examination when you claim Attendance Allowance. If you have a progressive disease and aren t expected to live for more than another six months there are special rules to help you get the benefit quickly and easily. Changes to your circumstances can affect the amount of Attendance Allowance you get, or whether you get it. To get Attendance Allowance you must be in Great Britain or treated as living here, and meet certain other conditions about your residence and presence.

12 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE Disability benefit information films Three short films about Carer s Allowance, DLA and Attendance Allowance presented in British Sign Language, narrated and subtitled can be downloaded from the Directgov website: These films are also available on DVD, which you can request to be delivered to you. Employment and Support Allowance Employment and Support Allowance replaces Incapacity Benefit for new claimants from 27 October If you are already receiving Incapacity Benefit, you will continue to get it as long as you are eligible. About Employment and Support Allowance The Allowance offers you personalised support and financial help, so that you can do appropriate work, if you are able to. It also gives you access to a specially trained personal adviser and a wide range of further services including employment, training and condition management support, to help you manage and cope with your illness or disability at work. Employment and Support Allowance involves a new medical assessment called the Work Capability Assessment. This assesses what you can do, rather than what you cannot, and identifies the health-related support you might need. Most people claiming Employment and Support Allowance will be expected to take steps to prepare for work, including attending work focused interviews with their personal adviser. Under Employment and Support Allowance, if you have an illness or disability that severely affects your ability to work, you will get increased financial support and will not be expected to prepare for a return to work. You can volunteer to do so at any point if you want to. How it works Employment and Support Allowance consists of two phases: the assessment phase rate is paid for the first 13 weeks of your claim while a decision is made on your capability for work through the Work Capability Assessment

13 Caring and Resources RB:NEC 8/5/09 11:05 Page 13 CARING AND RE SOURCE S 13 the main phase starts from week 14 of your claim, if the Work Capability Assessment shows that your illness or disability does limit your ability to work. There are two groups within the main phase: i) Work Related Activity Group If you are placed in the Work Related Activity Group, you will be expected to take part in work focused interviews with your personal adviser. You will get support to help you prepare for suitable work. In return, you will receive a work related activity component in addition to your basic rate. ii) Support Group If you are placed in the Support Group because your illness or disability has a severe effect on your ability to work, you will not be expected to take part in any work. You can do so on a voluntary basis if you want to. You will receive a support component in addition to your basic rate. Helping you into work If you are in the Work Related Activity Group, you will regularly see your personal adviser to discuss your work prospects. They will give you help and advice with: your job goals your skills, strengths and abilities steps you can take to help find suitable work your ideas, problems and any other work related issues you want to talk about. If you refuse to go to the work focused interviews, or to take part fully in the work focused interviews, it may affect your entitlement to Employment and Support Allowance. If you are in the Support Group you do not have to go to interviews, but you can ask to talk to a personal adviser if you want to. Information leaflet about Employment and Support Allowance Jobcentre Plus publishes an information leaflet called 'Employment and Support Allowance help if you are ill or disabled'. You can download the leaflet in PDF format from the Jobcentre Plus website:

14 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE Who can get it? You may be able to claim Employment and Support Allowance if any of the following apply to you: your Statutory Sick Pay has ended, or you cannot get it you are self employed or unemployed you have been getting Statutory Maternity Pay (SMP) and have not gone back to work for your employer because you have an illness or disability which affects your ability to work you are under State Pension age You must also either: have had an illness or disability which affects your ability to work for at least four days in a row (including weekends and public holidays) be unable to work for two or more days out of seven consecutive days be getting special medical treatment If you are aged between 16 and 20 (or under 25 if you were in education or training at least three months immediately before turning 20), you must: have been too ill to work because of an illness or disability for at least 28 weeks have been too ill to work before you turned 20 (or 25 if you were in education or training at least three months immediately before turning 20) Entitlement conditions There are two types of Employment and Support Allowance: contribution-based income-related Contribution-based Employment and Support Allowance You may be entitled to claim contribution-based Employment and Support Allowance if you have paid enough National Insurance Contributions. Income-based Employment and Support Allowance You may be entitled to claim income-based Employment and Support Allowance if you do not have enough money coming in, or you have not paid enough National Insurance Contributions, and you satisfy the entitlement conditions. This means that you have savings of less than 16,000 and, if

15 Caring and Resources RB:NEC 8/5/09 11:05 Page 15 CARING AND RE SOURCE S 15 you have a partner or civil partner, they work for less than 24 hours a week on average. If you've been living or working abroad Living or working abroad can affect your Employment and Support Allowance claim. You may be able to claim if you've either: paid enough UK National Insurance Contributions in the past (and the equivalent in certain other countries) worked abroad for an employer based in the UK and paid National Insurance Contributions for the first 52 weeks of that employment Incapacity Benefit If you have received Incapacity Benefit during the two years before 27th October 2008, you might get that again instead of Employment and Support Allowance. Jobcentre Plus will consider this when you make your claim. Tax credits Tax credits are payments from the government. You can order a claim pack over the phone by calling or textphone (8 8 daily).or you can pick up a claim pack from your nearest HMRC Enquiry Centre or Jobcentre Plus office. Who can get tax credits? If you re responsible for at least one child or young person who normally lives with you, you may qualify for Child Tax Credit. If you work, but earn low wages, you may qualify forworking Tax Credit. Howmuch do you get? The amount of tax credits you get depends on things like: how many children you have living with you whether you work and how many hours you work if you pay for childcare if you or any child living with you has a disability if you re aged 50 plus and are coming off benefits. Your payments also depend on your income. The lower your income, the more tax credit you can get.

16 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE Example 1 Mr and Mrs Khan have three children and both work full-time. Between them, they earn about 25,000 a year and get about 55 a week in tax credits.if their income was higher, and they earned about 50,000 a year, they d get about 10 a week instead. Example 2 Jon Barry is aged 30, unmarried and lives alone. He works full-time and earns 10,000 a year. He gets about 12 a week in tax credits. How tax credits work If you re married or living with a partner you ll need to make a joint claim for tax credits. You can only make a single claim if you don t have a partner. HM Revenue and Customs (HMRC) pay tax credits directly into your bank, building society, post office or National Savings account if it accepts Direct Payment either weekly or every four weeks. Who gets the payments? If you re both working and you both qualify for Working Tax Credit, you can decide who ll get the payments. If you re claiming Child Tax Credit and you re in a couple, the money will be paid to the main carer. How tax credits payments work The tax credits payments you receive are based on your current personal circumstances and your income from the previous tax year. If you re making a new claim for tax credits your payments will usually run from the date of your claim to the end of the tax year. For example, if you make a claim on 10 November 2008, your payments will be worked out from that date until 5 April Each year during April, May and June HMRC write to you asking you to: check the information they have about your personal circumstances confirm the income you received in the year that has just ended renew your claim. This helps HMRC to check that the payments they ve made to you were correct. It also allows them to base your payments for the year ahead on the right amount of income.

17 Caring and Resources RB:NEC 8/5/09 11:05 Page 17 CARING AND RE SOURCE S 17 Sometimes you ll have been paid too much or not enough and HMRC will make an adjustment to make sure that your payments are correct. Any payments HMRC make from 6 April 2009 to the date on which you renew your claim are temporary or provisional and if you don t renew, you may be asked to pay them back. Changes at home and work If your circumstances change it can affect the amount of money you should be getting. Contact HMRC as soon as possible to tell them about any changes. Contact HMRC You can contact the Tax Credit Helpline on or textphone (8 8 daily except Christmas Day, Boxing Day and New Year s Day), or through the website: There is more on Working Tax Credit in the Caring and Work section later in this booklet. Disabled Child Premium If you re responsible for a child under 19, or in certain circumstances under 20, you will get this premium if either: the dependant is getting Disability Living Allowance (DLA) the dependant is registered blind. If the dependant gets the highest-rate care component of DLA, you may get the enhanced Disabled Child Premium. You do not get either premium if the dependent child has capital of more than 3,000. Caring and your pension If you re on a low income or unable to work because you re caring for someone, you may be concerned about how this will affect your State Pension. State Pension The State Pension is made up of two parts: a flat-rate basic pension and an earnings-related additional pension, also called the State Second Pension.

18 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE Your entitlement to State Pension is based on the number of qualifying years, which are tax years in which you have paid, are treated as having paid or are credited with National Insurance contributions (NICs). The number of years you normally need to qualify for a full basic State Pension is equal to about 90 per cent of your working life. This is calculated from the start of the tax year in which you reach 16 to the end of the tax year before the one in which you reach State Pension age. State Second Pension If you don t earn enough to pay NICs, you can still build up an entitlement to State Second Pension, also known as additional State Pension, if: you take care of someone who s ill or disabled and you qualify for Home Responsibilities Protection (HRP) you re entitled to Carer s Allowance, even if you don t receive it because you get another benefit at the same or a higher rate you look after a child aged six or less and you re the one who claims and gets Child Benefit. Home Responsibilities Protection Home Responsibilities Protection (HRP) can protect your right to State Pension if you re caring for someone and you don t have enough NICs or credits in a particular tax year. You should get HRP automatically if throughout a complete tax year: you get Income Support and you don t need to register for work because you re caring for someone who is sick or disabled, or you re paid Child Benefit for a child under 16. If you re looking after someone who is sick or disabled and you don t get Income Support or Child Benefit, you ll need to apply for each tax year in which you need HRP. If you re entitled to Carer s Allowance, you ll be credited with NICs automatically and will not need HRP. Carer s Allowance and NICs For each week you receive Carer s Allowance you ll normally get an NIC credited to your NI record, unless you re a woman who has chosen to pay reduced rate NI contributions. You ll also normally be credited with an NIC for any week you re entitled to Carer s Allowance but it s not paid because you re also getting Widow s Benefit or Bereavement Benefits at the same or a higher weekly rate.

19 Caring and Resources RB:NEC 8/5/09 11:05 Page 19 CARING AND RE SOURCE S 19 Receiving Carer s Allowance and State Pension If you re receiving Carer s Allowance and you start receiving State Pension at a higher rate than Carer s Allowance, you may stop receiving Carer s Allowance but continue to have an underlying entitlement to it. Pension Credit Pension Credit is an entitlement for people aged 60 and over who are living in Great Britain. It could top up your weekly income to a guaranteed minimum level. If you re aged 65 or over and have saved towards your retirement you could receive extra money on top of this. You may also get extra money if you or your partner if you have one have caring responsibilities, are severely disabled or have housing costs, like a mortgage for example. You can call the Pension Service or textphone (lines are open 8.00 am to 8.00 pm Monday to Friday). An adviser will help you apply for Pension Credit and let you know what happens next. You can also download a guide leaflet Pension Credit do I qualify and how much could I get? and application form from: click on Guides and forms > Claim forms > Pension Credit HM Armed Forces War Disablement Pension You may be able to claim War Disablement Pension if you ve been injured or disabled during a time of war or as a result of service in HM Armed Forces before 6 April You can t claim if you re still serving. Constant Attendance Allowance If you need daily care and attention because of a disability and you claim War Disablement Pension you can claim Constant Attendance Allowance. Armed Forces Compensation Scheme The Armed Forces Compensation Scheme (AFCS) provides compensation if you re injured, or have an illness, as a result of service in the Armed Forces on or after 6 April 2005.

20 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE At home... Council Tax reduction Housing Benefit Community Care Grant Direct payments for carers Council Tax reduction for carers Your local council collects Council Tax to pay for services like policing, parks and street lighting. You may be entitled to a Council Tax reduction if you re a carer and you: live in the same property as the person you re caring for provide at least 35 hours a week of care. Also, the person you care for must have one of the following: higher rate of the care component of DLA higher rate of Attendance Allowance an increased Disablement Pension an increased Constant Attendance Allowance. The person you re caring for can t be your spouse, partner or child under 18. If you move to live with the person you re caring for you may be exempt from paying Council tax on the property you have left. Write to your council and tell them: the date you left your house and that it s unoccupied that you re caring for someone your new address (provide some proof, like a bill) and the name of the person you re caring for the level and type of care you are providing whether you intend to return. The council may also send you a form to fill in.

21 Caring and Resources RB:NEC 8/5/09 11:05 Page 21 CARING AND RE SOURCE S 21 How to calculate Council Tax reductions Write a list of all the people living in your property. Then cross off: children, including those over 18 but in full-time education anyone who is severely mentally impaired for example, someone with a permanent illness that affects intelligence or social functioning anyone who is providing care for 35 hours a week or more. This person is considered to be the carer. For example: Your household comprises: wife, full-time employed, no disabilities son, aged 12, no disabilities mother-in-law, dementia yourself, carer for mother-in-law. You can cross off: your son (under 18) your mother-in-law (dementia) yourself (carer). Now that there s only one person left on the list (your wife), you may get a 25 per cent Council Tax reduction. If you re left with no-one on your list, you may get a 50 per cent reduction. This could happen if the only people living in the property are: you (carer) the person you care for. This is only a guide and specific conditions may need to be satisfied for the reduction to apply. For more information, or a Council Tax reduction form, contact your local council. Council Tax reduction for disabled people You may also be entitled to a separate reduction in your Council Tax if you are disabled or have a disabled person living with you. For more about this go to the Directgov website: then go to Disabled People > Financial Support > Tax relief and reductions

22 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE Housing Benefit If you re on a low income and need financial help to pay all or part of your rent, you may be able to get Housing Benefit. Who s eligible? You may get Housing Benefit if you pay rent and your income and capital (savings and investments) are below a certain level. If you rent from a private landlord there s a new way of working out Housing Benefit known as Local Housing Allowance. Find out more at the Local Housing Allowance website: lha-direct.therentservice.gov.uk Who isn t eligible? You can t usually get Housing Benefit if: you have savings of over 16,000, unless you are aged 60 or over and getting the guarantee credit of Pension Credit you live in the home of a close relative you re a full-time student (unless you re disabled or have children) you re an asylum seeker or are sponsored to be in the UK. If you live with a partner or civil partner only one of you can get Housing Benefit. If you re single and aged under 25 you can only get Housing Benefit for bedsit accommodation or one room in shared accommodation. How much do you get? The most Housing Benefit you can get is the same as your eligible rent. This is the amount used to work out your benefit but may not be the same as your full rent. Eligible rent includes: rent for the accommodation charges for some services, such as lifts, communal laundry facilities or play areas. Even if it s included in your rent, you won t get any Housing Benefit for: water charges charges for heating, hot water, lighting, or cooking

23 Caring and Resources RB:NEC 8/5/09 11:05 Page 23 CARING AND RE SOURCE S 23 payments for food or fuel in board and lodgings or hostels. The amount of Housing Benefit you may get also depends on: 1. Your personal and financial circumstances Your local council will look at: money you and your partner or civil partner have coming in, including earnings, some benefits and tax credits, and occupational pensions your savings (and your partner s or civil partner s savings) your circumstances: your age, the size of your family and their ages, whether you or any of your family are disabled, and whether anyone who lives with you could help with the rent. 2. The particulars of your home and the rent you pay Your council will also look at whether: the amount of rent is reasonable for your particular home your home is a reasonable size for you and your family the amount of rent is reasonable for the area where you live. Your eligible rent may be limited to an amount that s reasonable for a suitably sized property in the area you live. How it s paid If you re a council tenant, your council will pay any Housing Benefit straight into your rent account. If you re not a council tenant and not living in an area covered by the Local Housing Allowance, you can choose to have your Housing Benefit paid: directly to your landlord to you by cheque by Direct Payment into your bank or building society account. Contact your council if you re worried about how Housing Benefit is paid. How to claim You re assessed for Housing Benefit and Council Tax Benefit at the same time. For information about Council Tax Benefit, go to: then Money, tax and benefits > Benefits and financial support > On a low income

24 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE If you re already claiming other benefits You ll get a form to claim Housing Benefit and Council Tax Benefit with your claim pack if you re claiming any of the following benefits: Pension Credit Income Support Jobseeker s Allowance. You should complete and return your Housing Benefit claim form to your local council. Housing Benefit won t affect any other benefits you get. If you re not claiming other benefits If you don t claim Pension Credit, Income Support or Jobseeker s Allowance you can get a form for Housing Benefit and Council Tax Benefit (including Second Adult Rebate) from your local council. Or you can download a claim form at the Department for Work and Pensions (DWP) website Claiming in advance If you know you re moving to a new address, you can claim Housing Benefit up to 13 weeks (17 weeks if you re aged 60 or over) before you move. You won t usually get any money before you move in. Backdating your claim You may be eligible to get your claim backdated. Your local authority can advise you on this. What to do if your circumstances change. You must tell your local council if: any of your children leave school or leave home anyone moves into or out of your home your income, or the income of anyone living with you, changes your capital or savings change your rent changes you move

25 Caring and Resources RB:NEC 8/5/09 11:05 Page 25 CARING AND RE SOURCE S 25 you or your partner or civil partner are going to be away from home for more than a month. This is not a full list. Check with your local authority to find out more. How to appeal If you re refused Housing Benefit or aren t happy with your council s decision you can ask them to reconsider. If you re still unhappy with the outcome, you can appeal to an independent Unified Appeal Tribunal. Community Care Grants If you need financial help to live independently in the community or to ease exceptional pressure on you and your family you may be able to get a Community Care Grant. You don t have to pay it back. Who s eligible? You can apply for a Community Care Grant if you re either: already getting Income Support, income-based Jobseeker s Allowance, income-related Employment and Support Allowance, Pension Credit or payment on account for one of these benefits, or likely to start getting one of these benefits within the next six weeks because you re moving out of care and any one of the following applies: you re moving out of residential or institutional care to live independently you re moving to a new home which will be more suitable for you following an unsettled period in your life and are being resettled by an organisation like a local council or voluntary organisation you need help to stay in your home and not go into residential care or hospital you need help because you or your family face exceptional pressure, such as family breakdown or because one of you has a long-term illness you look after someone who is ill or disabled, or has been released from custody on temporary licence you need help with expenses such as visiting someone who s ill or attending a relative s funeral.

26 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE How much do you get? The amount you might get depends on your circumstances. The amount may be reduced if you have savings of: over 500 where you and your partner are aged under 60 over 1,000 where you and/or your partner are aged over 60. How it s paid The grant is usually paid into your bank, building society or any other account that you ve nominated. Effect on other benefits A Community Care Grant doesn t count as income and won t affect other benefits you may be getting. What it can t be awarded for You won t get a Community Care Grant for: any need which occurs outside the UK educational or training expenses a distinctive school uniform, sports clothes or equipment travelling expenses to and from school school meals expenses in connection with court or legal proceedings removal charges expenses or storage charges, where the local authority can help with these domestic help or respite care repairs to local authority or housing association homes medical, surgical, optical, aural or dental items or services debts to government departments, including tax arrears investments Council Tax most other housing costs fuel costs, except in certain circumstances

27 Caring and Resources RB:NEC 8/5/09 11:05 Page 27 CARING AND RE SOURCE S 27 expenses of less than 30, except for travelling or daily living expenses work related expenses cost of buying, renting or installing telephones and call charges daily living expenses such as food and groceries (except if you re caring for a prisoner or young offender on release on temporary licence). You can t usually get a Community Care Grant if you ve already asked for the same items or services in the last 26 weeks. How to apply Download a claim form from the Directgov website, or contact Jobcentre Plus to find out where to send your completed form. When to apply You should usually apply straightaway. If you re still in residential or institutional care, you can apply up to six weeks before you re due to leave. How to appeal If you re unhappy with a Community Care Grant decision or award you have the right to ask for a review. You must write to Jobcentre Plus within 28 days explaining why you think the decision was wrong and ask for it to be reviewed. If you re still unhappy with the outcome, you can ask for a further review by a Social Fund Inspector. The review process is quick and simple, and should take no longer than 12 days. Direct payments for carers Direct payments are local council payments available for anyone who has been assessed as needing help from social services. They re normally available if you re a carer aged 16 or over or a parent (including people with parental responsibility for a disabled child). What are direct payments for? Direct payments can be used to buy services from an organisation or employ somebody to provide assistance. As a carer, you can use a direct payment to purchase the services you re assessed as needing to support you in your caring role. This includes support that may help maintain your health and wellbeing for example, driving lessons or a holiday so you can

28 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE have time to yourself. If you re assessed as needing domestic help, you may ask for a direct payment and buy the support services you need. Direct payments arranging care and services is not the same as Direct Payment where pensions and benefits are paid directly into an account. Who s eligible? If you already receive adult and childrens social care community services, your local council is obliged to offer you the option of direct payments in place of the services you currently receive. There are some limited circumstances where you re not given this choice ask your council. If you re not receiving social services, you ll need to contact your local council to ask them to assess your needs. Direct payments are also available for disabled people who ve been assessed as needing help from social services. If you have parental responsibility for a disabled child, you can get direct payments that can be used for a variety of services for your child. How much do you get? The amount you receive will depend on the assessment your local council makes of your needs. Direct payments are made directly into your bank, building society, post office or National Savings account. How to apply for direct payments locally If you already get services from your local council, ask about direct payments. If you re applying for services for the first time, your local council social services department should discuss the direct payments option with you when they assess your needs. What you can t use direct payments for You can t use direct payments to buy services for the person you care for. They can only be spent on getting the support you, as a carer, have been assessed as needing. You also can t use direct payments to secure a service from your spouse or civil partner, close relatives or anyone who lives in the same household as you, unless that person is someone who you

29 Caring and Resources RB:NEC 8/5/09 11:05 Page 29 CARING AND RE SOURCE S 29 have specifically recruited to be a live-in employee. There can be exceptional circumstances, which your council may agree with you. Effect on other benefits Direct payments do not affect any other benefits you may be receiving. What to do if your circumstances change If the needs of the person you care for change, contact your local council as soon as possible so that they can reassess the level of payments you require. Local councils can also review direct payments as children s and families needs change over time, just as they do when families are receiving services directly from a council. Downloadable information booklets about direct payments There are two booklets that can be downloaded from the Department of Health website ( or ordered over the phone: A guide to receiving direct payments from your local council (code 31006) is the standard booklet. An easy guide to direct payments (code 33291) is an easy read booklet. If you order the easy read booklet over the phone, you can ask for a pack which includes a book, a CD-ROM and an audio tape. To order a copy of either publication, call the Department of Health publications orderline, quoting the code number. Phone: Textphone: (Mon Fri 8 6). For local information, contact your local authority and ask for the direct payments section who can offer advice and support.

30 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE Getting around... Motability Blue Badge scheme Visiting places Motability The Motability Scheme run by the independent not-for-profit organisation Motability gives disabled people the opportunity to own or lease a car at an affordable price. How the scheme works The Motability Scheme can help you with leasing or buying a car if you re getting the War Pensioners Mobility Supplement or the higher rate of the mobility component of Disability Living Allowance (DLA). Even if you don t drive, you can apply for a car as a passenger and propose two other people as your drivers. You can also apply for a car on behalf of a child aged three or over who is entitled to the higher rate mobility component of DLA. Contract hire Through the contract hire scheme you can lease a new car supplied by a Motability accredited dealer for at least three years. Comprehensive insurance, routine servicing and breakdown assistance are included. You ll need to pay for the fitting and removal of any adaptations. You can apply if you have 12 months or more of your DLA award remaining. If your award is not renewed during the full length of your chosen scheme, your car will need to be returned. At the end of the period, the car is returned to Motability Operations who operate the car schemes under contract to Motability. Hire purchase Hire purchase enables you to buy the new or used car you want. You re responsible for negotiating the purchase price of the car with the dealer and for arranging insurance cover. At the end of the hire purchase agreement which can be between three and five years you ll own the car.

31 Caring and Resources RB:NEC 8/5/09 11:05 Page 31 CARING AND RE SOURCE S 31 Powered wheelchairs or scooters Motability also offers a hire purchase scheme for powered wheelchairs or scooters. Financial help and VAT relief If money is a problem when financing the car or adaptations, Motability may be able to provide a grant through their own charitable fund or the Specialised Vehicle Funds, which they administer for the government. Disabled people don t have to pay VAT on the cost of hiring a car through the Motability Scheme. The cost of any work involved in adapting a vehicle for a disabled person is also eligible for VAT relief. Contact Motability To find out more about the Motability Scheme, phone or visit their website Blue Badge scheme Blue Badges are sometimes known as disabled parking permits. The Blue Badge scheme provides a range of parking concessions for people with severe mobility problems who have difficulty using public transport. About the scheme The concessions provided under the scheme apply to on-street parking only. Badge holders may park on single or double yellow lines for up to three hours in England and Wales, except where there is a ban on loading or unloading. There are also a few locations where local schemes apply, such as parts of central London. You must display both your Blue Badge and parking disc showing time of arrival. There is no time limit for parking on yellow lines in Scotland. Badge holders may park for free and for as long as they need to at on-street parking meters and in areas regulated by pay-and-display machines, unless there is a traffic sign specifying a time limit for Blue Badge holders. Where a time limit is in force you must also display the special blue parking disc showing time of arrival. The scheme operates throughout the UK, but there are small variations in its application between England, Wales, Scotland and Northern Ireland.

32 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE Where the scheme doesn t apply The Blue Badge scheme doesn t apply to off-street car parks, private roads or at most airports. You can find airport plans showing disabled parking on the Blue Badge map. The scheme does not fully apply in four central London boroughs: City of London City of Westminster Royal Borough of Kensington and Chelsea part of the London Borough of Camden You can find Blue Badge bays in these central London areas on the Blue Badge map. London congestion charge Blue Badge holders qualify for a 100% exemption from the London Congestion Charge, but you must register with Transport for London (TfL) at least 10 days before your journey and pay a one-off 10 registration fee. Download a registration form from the TfL website or Phone: Textphone: Using your Blue Badge abroad Blue Badges can be used in some other European countries. An Institute of Advanced Motorists (IAM) booklet containing detailed information on the use of the Blue Badge in European countries can be downloaded from the IAM website The UK has reciprocal parking arrangements with other EU countries but there are currently no formal arrangements with any other countries. You can find more information on the European Commission s website ec.europa.eu When travelling outside the EU, it s best to take your badge with you and check in the areas you re visiting to see whether you re entitled to use your badge. There is further information on the Department for Transport s website

33 Caring and Resources RB:NEC 8/5/09 11:05 Page 33 CARING AND RE SOURCE S 33 Who can have a Blue Badge You re automatically eligible to apply for a badge if you re over two years old and either: receive the higher rate of the mobility component of DLA are registered blind receive a War Pensioner s Mobility Supplement. You may also be eligible for a badge if you re over two years old and either: have a permanent and substantial disability which means you can t walk, or which makes walking very difficult drive a motor vehicle regularly, have a severe disability in both arms, and are unable to operate all or some types of parking meter (or would find it very difficult to operate them). If you re a parent of a child who is less than two years old, you may apply for a badge for your child if they have a specific medical condition which means that they either: must always be accompanied by bulky medical equipment which can t be carried around without great difficulty, or need to be kept near a vehicle at all times, so that they can, if necessary, be treated in the vehicle, or quickly driven to a place where they can be treated, such as a hospital. Apply for a Blue Badge parking permit Your local council is responsible for issuing Blue Badge parking permits contact them for more information. Also check their website you may be able to download the Blue Badge application form. Misuse of the Blue Badge Local councils can take away a badge if the badge holder misuses it for example, by allowing other people to use it or if a person s disability improves so that they re no longer eligible for the scheme. If you re a badge holder, it can only be used for your benefit. If a trip is for someone else and you re a passenger and staying in the vehicle, you can t use the badge simply to let them benefit from free parking. Blue Badges must be properly issued and displayed in accordance with regulations. Badges should be displayed on the dashboard or fascia of the vehicle with the side showing the wheelchair symbol facing forward. Badges should be removed from view when the parking concessions aren t being used.

34 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE It s an offence for people other than the badge holder to take advantage of the parking concessions provided under the scheme. The maximum fine if someone is convicted is 1,000 plus any additional penalty for the related parking offence. The Disabled Person s Railcard The Disabled Person s Railcard allows you to buy rail tickets at a discount of up to a third. You can get a one-year or a three-year card. If another adult is travelling with you, they can also travel at the same discounted fare. Eligibility To qualify, you must meet at least one of the criteria listed below. You must: be registered as visually impaired be registered as deaf or using a hearing aid have epilepsy and have repeated attacks even though you receive drug treatment have epilepsy and are currently prohibited from driving because of your epilepsy receive Attendance Allowance receive Severe Disablement Allowance receive the mobility component of Disability Living Allowance receive the higher or middle rate care component of Disability Living Allowance receive War Pensioner's Mobility Supplement receive War or Service Disablement Pension for a disability of 80 per cent or more be buying or leasing a vehicle through the Motability Scheme Children and young people Children aged from five to 16 may also be eligible for a Disabled Person s Railcard. While they pay the normal child s fare, an adult can travel with them at the discounted rate of one-third off the adult fare.

35 Caring and Resources RB:NEC 8/5/09 11:05 Page 35 CARING AND RE SOURCE S 35 Buying a Railcard You need to complete an application form and send it with a copy of proof of entitlement and payment. You can download an application form from the Disabled Person s Railcard website or Contact the Disabled Person s Railcard helpline. Phone: Textphone: Visiting places Many places of interest, including museums, sports venues, National Trust properties and English Heritage sites, offer discounted or free admission to a companion accompanying a disabled person. Cinema Exhibitors Association Card This is a national card for disabled people, which entitles the holder to one free ticket for a person accompanying them to the cinema. The card is valid for one year. You can apply for the card if you are receiving DLA or Attendance Allowance or if you re registered blind. Application forms are available from cinemas across the UK supporting this card. Alternatively, download an application from A processing fee of 5.50 is chargeable for each card. Payment should be sent along with the completed application. RNIB offers information about audio description services in cinema, on DVD, on digital television and in the theatre. Visit For information regarding subtitles and audio description for cinemas visit If you have any difficulty, contact: The Card Network, Network House, St Ives Way, Sandycroft CH5 2QS Phone: Minicom/Textphone: info@ceacard.co.uk

36 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE Caring and work... Working and caring your legal rights Working Tax Credit Job grant Working and caring your legal rights If you re working when you start caring, it s important to tell your employer about your situation. Some carers are reluctant to discuss their situation with their employer for fear of being penalised or discriminated against. The good news is that there is legal protection for working carers. For example: Under the Carers (Equal Opportunities) Act 2004, local authorities have to take into account carers working arrangements as part of the carer s assessment. The Employment Act 2002 and the Work and Families Act 2006 give most carers the right to request flexible working (although this will not necessarily be granted). The Employment Relations Act 1999 gives carers the right to take reasonable time off work to deal with a range of difficult caring situations. Talking to your employer Caring for a disabled relative is often unpredictable and care arrangements can be complex, so you ll need to talk to your employer about your concerns and commitments. If you want to work, it s in your employer s best interest to consider making reasonable changes to your work pattern to help you work and continue caring. Many employers offer help to carers in a variety of ways. Think about how your employer could best help you and talk to them about your needs. You and your employer might want to consider some of the ideas considered in this section.

37 Caring and Resources RB:NEC 8/5/09 11:05 Page 37 CARING AND RE SOURCE S 37 Working arrangements There are many different ways of working flexibly. You could work from home or have flexible starting or finishing times. Other working arrangements might be: compressed working hours (where you work your normal number of hours in a short time typically fitting five days working time into four days) term-time or annualised working hours (the amount of hours you are contracted for per month or year are worked in a flexible way) job-sharing or part-time working flexible holidays to fit in with alternative care arrangements. Support at work When you discuss your caring role and responsibilities with your manager they should give you support and you may also: be able to talk to a welfare officer or occupational health adviser who knows about carers get in-house information and advice, counselling or attend support/networking groups receive a subscription to carers organisations or employee services. Special leave arrangements and time off in emergencies Most carers know they can get emergency leave (paid or unpaid), but there are other leave arrangements that your employer might be able to offer. These include: carers leave (paid/unpaid) compassionate leave borrowing/buying leave career breaks. A right to time off in emergencies You re entitled to take a reasonable amount of time off if you ve worked for your employer for at least a year and there is an emergency relating to the person you care for, for example:

38 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE if there is a breakdown in care arrangements if the person you care for falls ill or has an accident this can be emotional or physical pain if your child is involved in an incident during school hours if you need to make longer term care arrangements if you need time off following the death of a dependant. Flexible working The Employment Act (2002) gives working parents of disabled children under 18 the right to request flexible working arrangements. Also, you have the right to take (unpaid) time off for dependants in cases of emergency. Since 6 April 2007, you also have the statutory right to ask your employer for flexible working if you re caring for an adult who is a relative or lives at the same address as you. (From April 2009, the right to request flexible working was extended to parents of children aged 16 or under.) Download a free booklet from the Carers UK website: then go to Information > Work and Caring > Flexible Working Other help from your employer could include: access to a telephone so that you can call the person you re caring for a reserved car parking space, to make getting in and out of work quicker and easier reasonable notice if overtime or working from home is necessary. Carer s assessment If you need help in your caring role you can ask your local council for a carer s assessment. This takes into account your needs (for example, if you want to work and what help you might need) and the needs of the person you are caring for. You have a legal right to an assessment of your needs. It is an opportunity for you to discuss with social services what help you need with caring. You can also discuss any help that would maintain your own health and balance caring with other aspects of your life, like work and family. Social services use the assessment to decide what help to provide. For a detailed guide (including a sample letter requesting a Carer s Assessment which you can download), visit Carers UK website: Then go to Information > Help with caring > Carer s assessment guide

39 Caring and Resources RB:NEC 8/5/09 11:05 Page 39 CARING AND RE SOURCE S 39 Working Tax Credit If you re 25 or over, working at least 30 hours a week and on a low income, you may be able to claim Working Tax Credit you don t have to have children to claim. If you re single, you could get money if you: are 25 or over work at least 30 hours a week earn less than 12,865 a year If you re living with a partner, you could get money if: at least one of you is 25 or over at least one of you works 30 hours or more a week together you earn less than 17,400 a year If you re disabled, over 50 and returning to work, or a parent, you may also qualify. To check if you qualify, use the website: How to claim Get a claim form by calling the Tax Credits Helpline on or textphone Simply fill in your details and send the form back to HM Revenue & Customs (HMRC). They ll do the rest. If HMRC have any questions they ll contact you. HMRC will then send you an award notice telling you how much money you re entitled to and start paying this directly into your bank or building society account. All you have to do after this is tell HMRC of any changes to your circumstances.

40 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE Example 1 Tom is 27 and works in a bakery. He works 32 hours a week and earns 9,500 a year. He is single with no children. He recently applied for tax credits and now gets an extra 100 every four weeks. Example 2 Nelson is 32 and works for a building company. He earns 10,900 a year, working a 35 hour week. His wife Neeta works part-time in a shop and earns 4,600 a year. They have no children. They receive 55 in Working Tax Credit every four weeks. What you could get Yearly income Single person aged 25+ working 30+ hours a week with no children Couple at least one aged 25+ working 30+ hours a week with no children 8,612 1,685 3,455 10,000 1,140 2,910 12, ,130 14, ,350 16, You can get a better idea of how much you might be entitled to by using the tax credits calculator on the Directgov website Job Grant Job Grant is a one-off tax-free payment when you or your partner or civil partner start work and stop getting benefits. Who is eligible? You can claim Job Grant if you take up full-time work (at least 16 hours a week) and you expect the work to last for at least five weeks. You must also

41 Caring and Resources RB:NEC 8/5/09 11:05 Page 41 CARING AND RE SOURCE S 41 have been claiming one of the following benefits for at least 26 weeks before starting your new job: Jobseeker s Allowance Income Support Incapacity Benefit/Employment Support Allowance Severe Disablement Allowance Jobcentre Plus/New Deal Allowance payments where the allowance is based on Jobseeker s Allowance, Income Support, Incapacity Benefit or Severe Disablement Allowance Employment Zone payments where the allowance is based on Jobseeker s Allowance. You may also get Job Grant if your partner or civil partner starts working at least 24 hours a week and your benefit stops as a result. How much do you get? The amount of Job Grant you ll get depends on your circumstances: 100 for single people and couples and civil partnerships without children 250 for lone parents and couples and civil partnerships with children. Effect on benefits or tax credits Job Grant is tax-free and doesn t reduce other benefits or tax credits you may be entitled to once you start work. If you qualify for the Job Grant you ll also be eligible for Extended Council Tax Benefit and Extended Housing Benefit. How to claim You ll automatically get Job Grant so long as you re eligible. You just need to make sure you tell your Jobcentre Plus Office that you re starting work. You ll be paid in the same way as you were paid benefits. How to appeal You can t appeal. But if you ve been refused Job Grant or think you got the wrong amount, you can ask the office that dealt with your claim to reconsider their decision.

42 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE What else you need to know Job Grant replaced Back to Work Bonus and Lone Parent s Benefit Run-on for new claims from 25 October If you re under 25 and eligible for Jobseeker s Allowance, the New Deal for Young People aims to help you get back into work through training and work experience. If you re unsure about which benefits you re entitled to, it s a good idea to talk to someone at your local Jobcentre Plus Office.

43 Caring and Resources RB:NEC 8/5/09 11:05 Page 43 CARING AND RE SOURCE S 43 Managing money... About bank accounts Credit unions Income and expenditure Dealing with debt Savings and investments About bank accounts If you re receiving any sort of state benefit or entitlement, the easiest method of payment is Direct Payment into a bank or building society account especially now that some local post offices have closed. You can also pay most bills by monthly direct debit from your bank account. This makes it easier to budget because you know exactly how much money is being paid out of your account each month. So it s worth opening an account if you haven t already got one. If you re thinking of opening a new account or moving to another provider it s a good idea to shop around. You can choose from high street banks, internet banks (high street banks offer an internet banking facility too) and building societies. It s very easy to change bank accounts if you find one that s offering a better deal than yours. There are a number of websites that can help you compare accounts and decide on the best one for you. One of the best is Martin Lewis s website This has a step-by-step plain English guide to choosing a bank account. Other websites that do a similar job include and All these websites also offer advice on a range of other financial issues, for example: credit card comparisons mortgages loans savings and investments dealing with debt credit unions (see below).

44 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE Credit unions Credit unions are not-for-profit financial cooperatives set up by people with something in common for example, people from the same town, in the same industry (e.g. the police) or members of a particular trades union. There are around 500 credit unions of varying size around the UK. Their primary focus is saving and borrowing, but some offer current accounts and some of the larger unions even offer extras like Cash ISAs or Child Trust Funds. Credit unions are particularly useful for people who are less well off and therefore don t qualify for high street borrowing but who want to avoid the dangers associated with payday lending (payday loans typically involve a lender advancing a customer cash, usually for a month, against a postdated cheque) or doorstep loans. You can get more information and find out if there s a credit union in your area by visiting the Association of British Credit Unions website (full contact details under Organisations at the back of this booklet). Income and expenditure Keeping a regular eye on your personal finances will help you make the most of your money. Reviewing things like your bank accounts, mortgage, pension and savings will help make sure they re still right for you and alert you early to potential financial problems. It s a good idea to regularly check whether your income is: enough to leave you with money to spare only just enough to cover your spending not enough to cover your spending, so you ve got a shortfall. Use our simple charts over the page to calculate your monthly income and expenditure. Alternatively, you can use the online budget calculator on the Financial Services Authority (FSA) Moneymadeclear website to check your outgoings against your income. You can also do your own financial health check online. Website: then go to Tools & calculators. Also check the Step-by-step guides

45 Caring and Resources RB:NEC 8/5/09 11:05 Page 45 CARING AND RE SOURCE S 45 Working out your monthly budget Working out your monthly budget can help you feel more in control and is very straightforward once you get into the habit. You can do it on three sheets of paper. Sheet 1 is a record of your total monthly income. Some benefits and allowances will be payable to you and others to the person you care for, so you ll need a separate column for each of you. If anyone else is contributing to the total household income, you ll need a column for them too. Your monthly income sheet will look something like this: Sheet 1 Income from Me Person I care for Work Benefit payments Maintenance payments Interest from savings and investments Grants Other (e.g. rent paid to you, pensions) Total monthly income: Sheet 2 will list your monthly outgoings. This will be a bit more complicated because there are more items to list and because expenditure can vary quite a bit from month to month because of variables like car tax, birthdays, holidays, etc. It s difficult to be exact, but try and come up with an average monthly figure. For example, if your car tax is 120 a year, you could allow 10 a month for this, even though in practice you pay it in one or two annual instalments. If you pay as many bills as possible (utilities, telephone/broad band, Council Tax, TV licence, car and home insurance) by monthly direct debit it s much easier to assess your monthly outgoings than if you pay quarterly or annually. Sheet 2 will look something like this:

46 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE Sheet 2 Spending on Me Person I care for Rent/mortgage Council Tax Home/contents insurance Water Electricity Gas Telephone (landline, mobile) TV licence/rental Household insurance Car tax Car insurance Fuel Food Clothes Books/DVDs/CDs Newspapers/magazines Public transport Launderette Alcohol/cigarettes Chemist/regular medicines Credit payments (paying off loans/hp) Other* Total monthly expenditure: *Anything else you can think of, e.g. children s expenses (dinner money, pocket money, money for activities), vet s bills/pet insurance, milkman/window cleaner, charitable donations, fees for daytime/evening classes, etc.

47 Caring and Resources RB:NEC 8/5/09 11:05 Page 47 CARING AND RE SOURCE S 47 Now all you have to do is to put the totals for Sheets 1 and 2 together to give you Sheet 3, your monthly balance sheet: Sheet 3 Total monthly income Total monthly expenditure Balance (+positive or negative) If you have a healthy balance left at the end of the month, you may be able to put some away as savings. Look for savings/investments options that are suitable for your circumstances and will give you a better return. If money is tight every month, you may be able to increase your income by claiming benefits or tax credits that you re entitled to. If you have a negative balance, you re spending more than you ve got coming in so you may be building up debts. You ll need to take urgent action to reduce your outgoings and/or increase your income. If you don t think this is going to be possible, consider getting some free debt advice as soon as you can before things get worse Dealing with debt If you re worried about debts you can get free advice, for example by contacting: National Debtline on your local Citizen s Advice Bureau (or their internet Adviceguide one of the organisations listed at the end of this booklet.

48 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE Advice on dealing with your debts National Debtline (a registered charity) is a national telephone helpline for people with debt problems in England, Wales and Scotland. The service is free, confidential and independent. Dealing with your debts is a comprehensive self-help pack in plain English which you can use to work out how best to manage your debts. It contains advice on increasing your income by claiming the benefits and tax credits you re entitled to, and advice on budgeting and how to manage different types of debt. You can get a free copy of the self-help pack by calling National Debtline on or you can download it from: full_pack.pdf Debt advice If any of the following apply to you, seek debt advice straight away: mortgage arrears or payment difficulties Council Tax or rent arrears tax and other debts owing to HM Revenue and Customs hire purchase arrears overdue utility bills overdrafts and other bank debts visits from bailiffs and/or debt collectors dealings with loan sharks. Plan your way out of debt by: avoiding over-commitment working out a budget to make sure that your income is more than the amount of money you spend working out which debts to pay off first

49 Caring and Resources RB:NEC 8/5/09 11:05 Page 49 CARING AND RE SOURCE S 49 finding ways out of debt by increasing your income, reducing your spending and coming to arrangements with creditors considering consolidation of your debts (collecting them all in one place, e.g. a bank loan). Here are some ideas for reducing your monthly expenditure. Tick the box if you think you ve seen something you. Compare the rates of gas and electricity suppliers and switch to take advantage of the lowest rates. If you have credit card debts, look out for interest-free balance transfer offers. You have to pay a one-off transfer fee of about 3%, but you ll save much more than you pay if your debts are substantial. Make sure you read the small print thoroughly. Order food and household shopping on the internet. It can save you time and prevent you buying extra things you don t really need. Plan your weekly meals around the supermarket offers for instance BOGOF (Buy One Get One Free) or other special offers. You might want to explore on-line discounts, for example by visiting Savings and investments Even if you feel you re in control of your finances, it s a good idea to look regularly at your savings, borrowings and investments to make sure you re getting the best deals available. Look at things like: how much it costs you to borrow money on your mortgage, loans, overdrafts, credit and store cards how well your savings and investments are doing (including things like savings schemes and pensions) the cost of insurance to protect your income, your property and investments. Here s a few ideas for savings and investments: Child Trust Fund National Savings and Investments Individual Savings Accounts (ISAs) shares, unit trusts, investment trusts

50 Caring and Resources RB:NEC 8/5/09 11:05 Page CARING WITH CONFIDENCE corporate bonds and government bonds investing in property. You can find out more about money matters at the Directgov website under Money, Tax and Benefits or visit one of the many financial comparison websites, such as My Plan You might find it useful to use the My Plan storyboard to address some of the issues that came out of the session. You were introduced to this in the Finding Your Way session. It s simply a way of making a task less daunting by breaking it up into manageable stages. There s a blank My Plan on the next page. You don t have to be able to draw to use the plan. Use pictures or stick people or symbols or faces or just words to fill in the final box (bottom, right-hand corner) with what you want to achieve or how you d like to feel by the end of your journey. Now fill in the first box with something which represents where you are today. Fill in some of the other boxes to show what you might do or how you might feel on the journey to achieving your goal. Feel free to have fun with it. If using this plan doesn t appeal to you, make your plan in whatever way suits you best. If you ve got a lot of issues to deal with at once, for example, you could try and prioritise in other words, think through the problem and work out which particular person or problem or situation is really important. Then write down the steps you re going to take to start dealing with it. Or you could identify the key issue and write yourself a 10-point plan for resolving it. Do whatever works best for you!

51 Caring and Resources RB:NEC 8/5/09 11:05 Page 51 CARING AND RE SOURCE S 51 My Plan