Treatment of LA payments for providing temporary care (Shared Lives)

Has anyone any experience of how DWP treat payments for providing respite care away from the claimant’s own home? Scenario is - a respite carer on IS moves in for a few nights to look after someone, rather than has the person move in with them for a few nights.

Sched 9, para 27 of the IS regs (income to be ignored) mentions payments for someone ” in his care” (which could arguably be anywhere) and the DMG doesn’t distinguish between respite care provided in the claimant’s home or elsewhere. (28383-28384).

But IS reg 37(2)(b) cross references to Sch9 para 27 and talks about “payments in respect of a person accommodated with the claimant”. This reg is about self-employed earners and these payments are not counted as “earnings”.

I understand that HMRC only gives tax relief for payments where respite care is provided in the taxpayer’s own home and wondered if the same approach applied to how DWP treated these payments as income for IS.

Thank you.

Hi Tony. Sorry for the delayed reply, been on leave.

I have suggested we try and see what happens, with an agreement to underwrite any loss to the carer if benefit lost/appeal lost. As it relates to repsite care the risks and disruption will be a lot less than to any permanent placements.