Carer's allowance and pensions - the overlapping rule

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November 3, 2025

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Executive Summary

Jersey's Social Security rules prevent individuals from receiving both the Home Carer's Allowance and the state pension simultaneously. 206 people received Home Carer's Allowance in 2024 at a cost of £2.8 million. In the improbable event that all unpaid carers withdraw their support, the additional cost of residential care could range between £10.5 million and £20.4 million annually, averaging £15.5 million, substantially more than current expenditure on the allowance.

The Overlapping Benefits Rule

Under Jersey's Social Security system, people cannot receive both the Home Carer's Allowance and the old-age pension simultaneously. When a carer reaches pension age (currently 67 years), they must choose whichever benefit provides the higher financial return. However, it is not quite that simple. John (not his real name) was looking after his elderly mother while trying to work a trade around her needs. He kept letting down clients as his mother's needs had to come first, so he gave up work. He was not aware of Carer's Allowance, and he had to eat into his savings. When he was made aware of the allowance by a relative, he applied but was rejected because by the time he applied, he had reached pensionable age. He did not realise that a person cannot apply for Home Carer's Allowance for the first time after reaching pensionable age. This has cost him dearly as he did not have a full contribution record so only receives two-thirds of the total pension. If someone is already receiving Home Carer's Allowance before they reach pensionable age, they can choose to continue receiving it instead of their pension if it pays more.

The Home Carer's Allowance is currently £1,183 paid every four weeks (equivalent to approximately £296 per week). The current full-rate old age pension is £298.41 per week, effectively ending financial recognition of the caring role once the carer reaches retirement age, even when intensive caring responsibilities continue.

This rule stems from the principle that both benefits are funded from the same Social Security Fund, and the system does not permit overlapping contributory benefits. However, this creates particular hardship for older carers who continue providing intensive support beyond retirement age, most commonly those caring for spouses or adult children with disabilities.

What is Home Carer's Allowance?

The Home Carer's Allowance provides income support for people under pension age who provide full-time care (minimum 35 hours per week) for someone assessed as requiring a high level of personal care. The allowance compensates for income lost because the carer cannot work full-time due to their caring responsibilities.

Eligibility requirements include:

The carer must be below Social Security pension age (currently 67)
The person cared for must be assessed as needing a high level of personal care
The carer must spend at least 35 hours per week caring
The carer must have a contribution record totalling at least 6 months
The cared-for person must have been living in Jersey for the last 12 months

In 2024, 206 people received Home Carer's Allowance, costing £2,827,092.54.

Funding Sources

Both the Home Carer's Allowance and state pensions are funded through Jersey's Social Security Fund. In 2024, £403 million was paid into the social security scheme:

Benefits totalling £387 million were paid in 2024, of which pension payments accounted for £255 million.

Current contribution rates are:

Employees: 6.0% of gross monthly earnings between £553 and £5,800.
Employers: 6.5% on earnings up to £5,800, plus an additional 2.5% on earnings above this threshold.
Self-employed: Combined rates equivalent to both employer and employee contributions.

The shared funding mechanism forms the basis for the overlapping benefits prohibition, as the system is designed to provide only one form of income support per individual at any given time.

The Long-Term Care scheme, which supports residential and home care services, operates through a separate funding stream via Long-Term Care contributions paid by all income taxpayers at a rate of 1.5%.

Jersey’s Caring Population

Overall Numbers

Jersey has an estimated 10,000-11,000 unpaid carers. Jersey’s 2016 Health & Life Opportunities Survey found that one in ten households includes a self-identified ‘carer’. With 44,583 households in Jersey (2021 Census), this suggests around 4,460 households contain carers.

The Jersey Carers Strategy estimates that one in seven people are currently fulfilling an unpaid caring role, which would suggest approximately 15,000 unpaid carers across the island’s population. However, many people do not recognise themselves as carers, with individuals often saying, “I’m not a carer, she’s my mum. I just pop in to see her a few times a week".

Young carers represent approximately 1% of households in Jersey, indicating that caring responsibilities span all age groups.

Impact on Carers

Research conducted for the Jersey Carers Strategy found that caring takes a significant toll:

50% of carers say they get satisfaction from their caring role.
51% say caring increases their stress levels.
39% say caring makes them feel worn out or exhausted.
Many carers report that caring has pushed them into financial hardship.
Nearly three-quarters have suffered mental health problems because of the pressure.

Age Demographics

Jersey’s population is ageing, and there has been an increase in the number of carers over the age of 75. This demographic trend intensifies the relevance of the overlapping benefits rule, as more carers reach pension age while continuing to care.

The largest population groups (ages 35-64) will move into older age within the next 10-15 years, leading to continued growth in caring responsibilities as this cohort ages.

Who Carers Support

Jersey’s carers primarily support family members across several categories:

Older relatives with dementia or age-related frailty: In 2021, 20% of females in Jersey were aged 65 or older, projected to rise to between 24% and 29% by 2043. Dementia affects 21% of females over 90 years old, with 63% of dementia patients being female and 37% male.
Partners with chronic illness: often involving spouse care in older age groups. A slightly higher number of women (16,750) have at least one long-term condition compared to men (16,055).
Adults with long-term physical or learning disabilities: including those whose daily activities are limited by longstanding illness.
Children with severe developmental conditions: supported through Home Carer’s Allowance for intensive caring situations.

The number of people dependent on another in Jersey is growing and will escalate significantly in the years ahead, creating increased pressure on unpaid carers and the social security system.

Economic Impact of Residential Care

Current Residential Care Costs (2025)

Based on Long-Term Care Scheme maximum weekly benefit rates:

Home Care Costs

If someone needing care wishes to remain in their own home, the cost of professional home care according to the Jersey Care Federation was £39.80 per hour in 2024. This works out to £72,436 a year based on 35 hours care per week.

Financial Impact Analysis

Home Carer's Allowance expenditure (2024): £2.8 million for 206 recipients.

If, in the improbable event that the current 206 people receiving Home Carer's Allowance withdrew their support, the financial impact on Jersey's public resources would be between £10.498 million for standard residential care and £20.43 million for specialist care, averaging at £15.45 million.

Policy Implications and Recommendations

The Long-Term Care Fund is operating at a £35 million deficit. Residential care costs range from £50,000 to £99,000 per person annually. Therefore, maintaining unpaid caring arrangements through appropriate financial recognition appears fiscally prudent in this context.

Demographic Considerations

Jersey's largest population groups will move into older age over the next 10-15 years.

The dependency ratio increased from 48.5% in 2014 to 52.5% in 2024.
The over-64 population grew by 12% between 2019 and 2024.
The birth rate continues to decline, with the total fertility rate below replacement level for decades.
Increase in carers over age 75.

Reform Options

Several policy approaches could address the overlapping benefits challenge:

Carer Pension Supplement: Introduce a partial supplement to pensions for those who continue intensive caring (35+ hours weekly) beyond pension age, recognising ongoing caring responsibilities.
Graduated Entitlement: Replace the binary overlap rule with tapered support based on hours of care provided, allowing proportional recognition of caring work.
Pension Credit System: Recognise long-term unpaid care as equivalent to paid employment for pension credit purposes, ensuring carers do not lose pension entitlement.
Care Allowance Independence: Restructure the Home Carer's Allowance to recognise social contribution rather than income replacement and remove it from the overlapping benefits rule.

Fiscal Sustainability

The 2024 Social Security Fund demonstrates fiscal capacity:

Total contributions: £403 million
Benefits paid: £387 million
Surplus: £16 million
Social Security (Reserve) Fund: £2,452 million

Reform of the overlapping benefits rule could be accommodated within existing fiscal parameters.

Conclusion

Jersey's overlapping benefits rule reflects assumptions about caring patterns that no longer match demographic reality. Jersey's ageing population, falling birth rate, and pressures on care services mean we need to reevaluate how we support unpaid carers.

Reforming the overlapping benefits rule would acknowledge what these carers contribute.

This paper calls for a review of the overlapping benefits rule as part of wider social security reform. Unpaid care is essential infrastructure, and it deserves policy support that reflects that reality.

Biographical note

Jennifer Bridge MBE is an accomplished Chair with extensive experience across the creative arts, third sector, and political spheres.

Jennifer contributes regularly to public discourse through her columns and articles in local media, focusing on inclusion and open government.

During the COVID-19 pandemic, she completed postgraduate studies in research methodologies, which has enhanced her evidence-based approach to public commentary.

Jennifer is a co-organiser of Jersey repair café - a community group where volunteers fix broken items like clothes, electronics, and bikes for free, promoting sustainability and reducing waste.

Sources

Jersey Carers Strategy https://carersjersey.je/wp-content/uploads/2021/08/JerseyCarersStrategy-2017-06-07.pdf

Total number of Home Carers Allowance Claims and year ... https://www.gov.je/Government/FreedomOfInformation/pages/foi.aspx?ReportID=8619

Home Carer's Allowance https://www.gov.je/Benefits/Allowances/pages/homecarersallowance.aspx

Requirements for someone to be able to claim home carer's allowance https://statesassembly.je/publications/questions/2024/2024-oral-questions/2024-oq-1-30/oq-8-2024

How your state pension works - Government of Jersey https://www.gov.je/Benefits/PensionsRetirement/pages/howpensionworks.aspx

Social Security Department Home Carer's Allowance ... https://www.gov.je/Freedom%20of%20Information%20library/ID%20FOI%20Gov%20293%20-%20Home%20Carers%20Allowance%20Guideline%2020170716.pdf

Social Security - Policy Centre Jersey https://www.policy.je/papers/social-security-2

Jersey: £403m paid into social security scheme in 2024 - BBC News https://www.bbc.co.uk/news/articles/cj3y57eev0no

Long-term care contributions could increase from 2027 https://jerseyeveningpost.com/news/2025/10/02/long-term-care-contributions-could-increase-from-2027/

Long-term care scheme - Government of Jersey https://www.gov.je/Benefits/LongTermCareScheme/pages/home.aspx

Population and migration statistics 2024 published today https://stats.je/news/population-and-migration-statistics-2024-published-today/