Carers' Allowance and Pay in Lieu of Notice

I’m just about to be dismissed from my job on ill health grounds, and I have been told I will be given a single payment lump sum amounting to 12 weeks’ pay, in lieu of notice. This will come to over £3,000, I think.

As sole carer for my daughter (who is in receipt of PIP), I have already been awarded Carers’ Credit, but of course due to being in reasonably well-paid work (much more than £110 per week!) I have not been able to claim Carers’ Allowance (CA), but I anticipate no problem in being able to claim CA on that basis.

My question is because of the ‘lieu of notice’ pay - how does this work with regard to beginning my CA claim? In the week I get the payment, I will of course have earned more than £110. But the week after, I will have earned nothing, although of course I will make the lump sum last as long as possible. So do they count it as a single payment for that week/month it comes in and therefore won’t pay CA for that week/month; do they not pay me CA for 12 weeks; do they even ask what type of money that is (if it were a pension lump sum, for example, it would not count against me) - how does it work, please?

Thanks in advance :slight_smile:

Definitely a question for the CUK helpline!

Hi CZ,

welcome to the forum.

Regarding the helpline:

You can email us at > > and we will respond to your enquiries within 10 working days, although it can often be sooner.

Our telephone helpline providing information is open from Monday to Friday between 9am and 6pm - 0808 808 7777


Thanks, folks! :slight_smile: