Yes, you can deduct 50% of any pension contributions when calculating eligibility for carers allowance.
(scroll down to “You don’t earn over £128 a week (after deductions)”
The following amounts are deducted from your gross weekly earnings (if you are in employment) or your net profit (if you are in self-employment) before your earnings are taken into account for Carer’s Allowance:
half of your contributions towards an occupational/personal pension
If you earn £130 a week (after tax and national insurance) you will not be entitled to Carer’s Allowance. However, if you put £10 a week into a pension, half of the £10 can be deducted from your earnings. Your earnings for Carer’s Allowance would therefore be £130 - £5 = £125 a week. As this is not over the earnings limit, you could claim Carer’s Allowance.
In your case you are currently £8.18 over the weekly threshold so you would need to put around £20 per week into a pension plan. 50% of that £20 would be deductible - i.e. £10 which would bring your earnings down to £126.18 per week.
Does it have to be a pension? If you are able to find an ISA or suchlike that grows faster than a pension pot would plus the option of cashing some of the pot in if needed why can’t you call it it ‘pension policy’?
I’m not an expert on CA (being over 60 and claiming my state pension when I started caring I’ve never been eligible for CA), but the rules do state “occupational/personal pension” so I believe that the pension would have to be with an approved pensions supplier. The rules don’t mention any other form of savings.
Probably the Carers UK advice line team would be able to give you a more definitive explanation. You can contact them via email or telephone
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