There are an estimated 6.5 million unpaid carers in the UK — people who look after a family member, friend, or neighbour who is disabled, elderly, or seriously ill. Yet Carer's Allowance, the main state benefit for unpaid carers, is claimed by just 1.3 million people. Many eligible carers don't know they qualify, and some who do claim face the frustrating 'cliff edge' earnings trap. Here's everything you need to know about Carer's Allowance in 2026.
What Is Carer's Allowance?
Carer's Allowance is a weekly benefit paid to people who spend at least 35 hours per week caring for someone with a disability. As of April 2025, it's worth £81.90 per week (£4,258.80/year). It's a taxable benefit — it counts as income for tax purposes and is included in any benefit calculations. Despite being one of the lowest-paid benefits in the UK, it's still worth claiming if you're eligible, as it can also 'passport' you to other entitlements including carers' premium in means-tested benefits and — importantly — Class 1 NI credits that count towards your State Pension.
- •Weekly rate (2025/26): £81.90/week = £4,258.80/year
- •Taxable: counts as income for tax and benefit purposes
- •Provides NI credits (Class 1) — counts towards State Pension
- •Passports to carer premium in other means-tested benefits
- •Can be backdated up to 3 months if you were eligible earlier
Who Qualifies for Carer's Allowance?
To qualify for Carer's Allowance, you must: care for someone for at least 35 hours per week; be caring for someone who receives a qualifying disability benefit (the most common being Disability Living Allowance middle/highest rate care component, Personal Independence Payment daily living component, Attendance Allowance, or Armed Forces Independence Payment); be aged 16 or over; be living in England, Scotland, or Wales; and not be in full-time education (21+ hours of supervised study per week). Crucially, you cannot earn more than the net earnings threshold — set at £151/week (2025/26) after certain deductions.
- •35+ hours caring per week
- •Person cared for must receive qualifying disability benefit
- •Qualifying benefits: DLA (middle/high care), PIP daily living, Attendance Allowance
- •Aged 16+, living in England/Scotland/Wales
- •Not in full-time education (21+ supervised hours/week)
- •Net earnings under £151/week
The Earnings Trap
The Carer's Allowance earnings threshold is one of the most politically debated aspects of the benefit. You lose all Carer's Allowance if your net earnings exceed £151/week (2025/26) — there's no tapering. This means a carer earning £150/week receives the benefit in full, but one earning £152/week receives nothing. For part-time carers who work, staying under the threshold requires careful planning. 'Net earnings' are calculated after deducting tax, NI contributions, pension contributions (including workplace pension auto-enrolment), half of private pension contributions, and any care costs for the person you care for (up to the amount of earnings). Increasing pension contributions is the most effective legitimate way to reduce net earnings below the threshold.
- •Cliff edge at £151/week net earnings (2025/26)
- •No tapering — all or nothing
- •Net earnings: after tax, NI, pension contributions, and carer costs
- •Pension contributions reduce net earnings — consider increasing contributions
- •Salary sacrifice pension also reduces gross earnings used in calculation
How Carer's Allowance Affects Other Benefits
Carer's Allowance interacts with other benefits in complex ways. If you receive Universal Credit, the 'carer element' (worth an extra ~£198.31/month in 2025/26) is added if you're eligible for Carer's Allowance — but the Carer's Allowance itself is counted as income against Universal Credit, so the net gain is smaller than it appears. If you're on Pension Credit, claiming Carer's Allowance triggers the carer premium, which can be worth over £45/week additional Pension Credit. If you or your partner receive the full basic or new State Pension, you may have an 'underlying entitlement' to Carer's Allowance — meaning you don't receive the payment (because State Pension overlaps with it) but still get the NI credits and passport to carer premium.
- •Universal Credit: carer element (£198.31/month) added when eligible
- •Pension Credit: carer premium (£45+/week) triggered by Carer's Allowance
- •State Pension: 'underlying entitlement' still gives NI credits even if no CA payment
- •Check for overlapping benefits with a free welfare benefits calculator
- •MoneyHelper, Turn2Us, and EntitledTo all have free calculators
Frequently Asked Questions
Can I claim Carer's Allowance if I'm working?+
Yes — as long as your net earnings are under £151/week (2025/26) and you meet the other criteria.
Does the person I care for have to live with me?+
No — the person cared for can live elsewhere. What matters is that you spend at least 35 hours per week caring for them.
Can two people claim Carer's Allowance for the same person?+
No — only one carer can claim Carer's Allowance for the same disabled person, even if multiple people are involved in their care.
What if the person I care for goes into hospital?+
Carer's Allowance typically continues for up to 12 weeks if the person enters hospital, as long as you're still likely to resume caring after their discharge.
#carers allowance#carer benefits uk#unpaid carer#caring for someone
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