Carers Allowance and Bereavement Support Payment

Hi all, I’m looking into the interaction between Carers Allowance and Bereavement Support Payment and haven’t been able to find a definitive answer as to whether the BSP monthly instalments count as income for CA.

CPAG says ‘The initial lump sum of BSP counts as capital for all means tested benefits, but is disregarded for up to 52 weeks. The monthly payments count as income, but are disregarded for all means-tested benefits’

If I’m interpreting this correctly, this means that the year disregard only applies to the lump sum, and that the monthly payments are treated as income for any non-means tested benefit, so BSP would reduce CA from the point it goes into payment.

However, MoneyHelper directly contradicts this, stating

“If you are getting Bereavement Support Payment, it won’t affect your other benefits for a year.

After then, the income you get from it will be taken into account for means-tested benefits. These include:

Tax Credits
Universal Credit
Income Support
Incapacity Benefit
Jobseeker’s Allowance
Carer’s Allowance
Employment and Support Allowance.”

https://www.moneyhelper.org.uk/en/family-and-care/death-and-bereavement/claiming-bereavement-allowance-and-other-benefits

So this suggests there’s no difference in how the lump sum and monthly payments are treated, and the initial 52 week disregard applies to both, but that there’s no ongoing disregard of the instalments for means tested benefits after the year period passes.

If this is the case, then BSP wouldn’t affect carers allowance for the first 52 weeks, but would after that.

I also note Moneyhelper lists CA as a means-tested benefit, which makes me suspicious of the accuracy of this info.

If anyone can provide any clarity on how CA and BSP actually interact with each other and if/when disregards apply I’d really appreciate it. Thanks everyone!

Bereavement Support Payments and Carer’s Allowance are not overlapping benefits so neither affects the other’s payability (unlike Widowed Parent’s Allowance). Carer’s Allowance isn’t a means-tested benefit although it has the earnings rule but BSP payments aren’t earnings so no impact there.

Thanks for the quick reply Paul, really appreciate it.

So just for absolute clarity:
CA and BSP don’t affect each other’s payability, or the amount of either paid, as BSP isn’t counted as earnings towards the CA weekly limit so has no impact, and BSP is non-means tested so CA has no impact.
Finally, since CA has no capital limit, a lump sum of BSP wouldn’t affect it, whether or not the 52 week disregard is in effect.

Does that all sound right?

RJ000 - 19 June 2024 03:04 PM

Thanks for the quick reply Paul, really appreciate it.

So just for absolute clarity:
CA and BSP don’t affect each other’s payability, or the amount of either paid, as BSP isn’t counted as earnings towards the CA weekly limit so has no impact, and BSP is non-means tested so CA has no impact.
Finally, since CA has no capital limit, a lump sum of BSP wouldn’t affect it, whether or not the 52 week disregard is in effect.

Does that all sound right?

Not quite

Earnings affects carers allowance because you cannot get CA is you are held to be an “employed earner”

BSP and carers allowance are not overlapping benefits   so BSP wont affect carers allowance in any way

Carers allowance is not means tested so capital is always disregarded