Publication - Advice and guidance

Coronavirus (COVID-19) - social care workforce payment: guidance on the process for Shared Lives Schemes

Published: 21 Jul 2021
Last updated: 27 Jul 2021 - see all updates

Guidance for those who work in a Shared lives scheme. This includes registered managers and Shared Lives carers.

Coronavirus (COVID-19) - social care workforce payment: guidance on the process for Shared Lives Schemes
More information

More information for shared lives carers

 I also work for a social care employer

It is your responsibility to tell your Shared Lives scheme organiser that you want them to apply for your payment and that you will not apply through a social care employer. It is also your responsibility to tell any other employers you may have that they should not apply on your behalf.


You will need to tell your social care employer or Shared Lives scheme organiser who is to apply for you, the hours you work for your other employer(s) and provide evidence of time sheets:

It is your responsibility to make sure that if you work for Shared Lives and a social care employer(s) and work more than full time that you do not receive more than the maximum payable of £500. 

If an error occurs, you should also notify your Shared Lives organiser and social care employer(s) of any duplicate or excessive payments that you have received.

I have left shared lives member scheme

If you were a Shared Lives carer working in a Shared Lives scheme in adult social care for a minimum of 4 continuous weeks between 17 March and 30 November 2020 but have since left or retired you are eligible.  Payment will be processed as a payment after leaving.

If you meet the eligibility criteria but have left the Shared Lives scheme or retired,  you must tell your former Shared Lives manager to ensure they submit an application on your behalf.

Payments cannot be made to Shared Lives Carers who were dismissed.

State benefits or tax credits

If you are in receipt of benefits you should get advice from the DWP about the impact the payment may have on your benefits. 

If you receive Universal Credit 

If you receive Universal Credit you need to notify your work coach of the change in circumstances in order to avoid any overpayments which may result in issues with your payment.

The payment will be treated as earnings for the month it is received and might reduce or stop your Universal Credit award for that month. Your Universal Credit will stop for more than one month if earnings including the payment are more than £2,500 above the level that stops your Universal Credit.

It may also affect future entitlement to Universal Credit.

You should get advice as soon as possible before receiving the payment.

It may also affect any benefits that you are entitled to as a result of receiving Universal Credit, such as Scottish Child Payment, Best Start Grant and Funeral Support Payment.

If you receive tax credits 

The payment will be treated by HMRC as earnings for the tax year 2020/21 and might affect the amount of your tax credits award.

You should get advice as soon as possible before receiving the payment. 

If you asked HMRC for an increased tax credits award based on estimated lower earnings for the tax year 2020/21, this estimate may be too low when the one-off payment is added to your actual earnings. That could mean an overpayment of tax credits which HMRC would usually require to be repaid.

When you send your tax credits annual review form, or are asked to complete an annual declaration form, you should check that the earnings figure includes this payment, if you receive it.

If you are receiving legacy benefits other than Tax Credits:

Legacy benefits are Housing Benefit (if you are under pension age), Income Support, income-based Jobseeker’s Allowance, and income-related Employment and Support Allowance. If you are receiving other ‘legacy benefits’ your entitlement could be affected. If your entitlement ends as a result, you will not be able to claim these benefits again and will need to claim Universal Credit instead if you still need support.

You should get advice from the DWP as soon as possible before receiving the payment. 

If you receive a council tax reduction

If you currently receive a Council Tax Reduction, and have been paid either a lump sum payment or have selected to receive this payment by monthly instalments, you should contact your local authority to make them aware of this payment. This will make sure that this payment does not reduce your level of Council Tax Reduction. As your local authority may request verification of the payment you have received, please retain your payslip for this purpose. If you do not tell your local authority, your level of Council Tax Reduction may reduce or stop.

Other benefits that may be affected 

The following benefits may also be affected: 

  • pension credit 
  • carer’s allowance 

If you want to find out more about how this payment may affect your benefits or tax credits, then contact: 

First published: 21 Jul 2021 Last updated: 27 Jul 2021 -