Carer’s Allowance is £86.45 a week in 2026/27, £4,495 a year, for anyone aged 16 or over who spends at least 35 hours a week caring for someone receiving a qualifying disability benefit. The condition that catches most working carers is the earnings limit: counted earnings must be £204 a week or less, and a single pound over loses the whole payment for that week. Earnings are counted after tax, National Insurance, half of any pension contribution and certain care and work costs, so the gross figure that fits within the limit is often higher than £204.
The figures
| 2026/27 | |
|---|---|
| Weekly rate | £86.45 |
| Annual equivalent | £4,495 |
| Earnings limit after deductions | £204 a week |
| Hours of care required | 35 a week |
| Universal Credit carer element | £209.34 a month |
| Pension Credit carer addition | £48.15 a week |
The allowance is paid weekly in advance or every four weeks, is taxable, and earns a Class 1 National Insurance credit for every week it is paid, which protects the State Pension record of carers who are not working. Only one person can claim for a given cared-for person, and a carer looking after two people receives one allowance.
Who the cared-for person must be
The person you care for must receive one of the qualifying benefits: the daily living component of Personal Independence Payment at either rate, Disability Living Allowance at the middle or higher care rate, Attendance Allowance, the daily living component of Adult Disability Payment or Pension Age Disability Payment in Scotland, Child Disability Payment at the middle or higher care rate, Constant Attendance Allowance with an industrial injuries or war pension, or Armed Forces Independence Payment. Our PIP rates guide sets out how the daily living component is awarded. You need not live with or be related to the person, and the 35 hours can include time spent on practical tasks, supervision and keeping them safe, not only hands-on care.
The earnings limit in practice
Counted earnings are gross pay less income tax, National Insurance, 50% of any pension contribution, the cost of equipment or travel between workplaces not met by the employer, and up to 50% of earnings spent on care for a child or the disabled person while you work.
| Situation | Gross weekly pay | Counted earnings | Result |
|---|---|---|---|
| 16 hours at the £12.71 National Living Wage | £203.36 | £203.36 | Under the limit |
| 17 hours at the National Living Wage | £216.07 | £216.07 | Over the limit, allowance lost |
| £230 with £60 a week into a pension | £230.00 | £200.00 | Under the limit |
| £250, no pension | £250.00 | £247.68 | Over the limit |
| £300 with £100 a week of care costs while working | £300.00 | £183.68 | Under the limit |
| £1,000 a month, no deductions | £230.77 | £230.77 | Over the limit |
Tax and National Insurance barely move the figure at these earnings because they start above £12,570 a year, about £242 a week. A pension contribution is the most useful lever: a carer earning £230 who pays £60 a week into a pension is £4 inside the limit, and salary sacrifice reduces gross pay directly. The Carer’s Allowance calculator applies the deductions for any pay, frequency and pension figure and shows how close to the line you are. Earnings are assessed weekly for weekly paid staff and averaged for monthly paid staff, so an occasional overtime week can cost a week’s allowance.
Carers with a State Pension or on Universal Credit
Carer’s Allowance cannot be paid on top of the State Pension where the pension is £86.45 a week or more, under the overlapping benefit rules. The claim is still worth making, because it establishes an underlying entitlement that adds the £48.15 carer addition to Pension Credit and a carer premium to Housing Benefit and Council Tax Reduction. The Pension Credit calculator includes the addition.
For carers on Universal Credit the allowance is deducted in full as unearned income, so it adds nothing to the household’s total; the carer element of £209.34 a month is paid to anyone who meets the 35-hour caring condition whether or not they claim Carer’s Allowance, and does not carry an earnings limit. Working carers on Universal Credit are therefore often better placed claiming the element alone and keeping their hours. Our Universal Credit rates guide covers the elements and the taper.
Two warnings before claiming
A claim can reduce the cared-for person’s own benefits: if they receive the severe disability premium in Pension Credit, Housing Benefit or a legacy benefit, or the equivalent addition, it stops when someone is paid Carer’s Allowance for looking after them, and the premium can be worth more than the allowance. Check their award first. The second warning concerns overpayments: earnings above the limit must be reported promptly, and the DWP recovers weeks paid in error, sometimes years later. In Scotland the equivalent benefit is Carer Support Payment at the same rate with the same earnings limit, and it carries an additional twice-yearly supplement.
Common questions
How much is Carer’s Allowance in 2026/27? £86.45 a week, which is £4,495 a year. It rose in April 2026 in line with September 2025 inflation.
What is the earnings limit? £204 a week after tax, National Insurance, half of any pension contributions and allowable care and work costs. Earning £1 more removes the whole payment for that week.
Can I get Carer’s Allowance and the State Pension? Not both in full. If the State Pension is £86.45 or more the allowance is not paid, but the underlying entitlement adds £48.15 a week to Pension Credit and premiums to housing help.
Is Carer’s Allowance taxable? Yes. It counts as taxable income, although most carers with no other income stay within the personal allowance.
How many hours count as caring? At least 35 hours a week, including supervision, help with daily tasks and time spent keeping the person safe. Several short periods add up.
Can I claim if I study? Only if the course is under 21 hours a week of supervised study. Full-time students are excluded.
Information, not financial advice. Rates and the earnings limit are the published 2026/27 figures on gov.uk: Carer’s Allowance; worked figures are from the site’s calculator for straightforward cases. Check the cared-for person’s own benefits with a welfare rights adviser before claiming.