How much is Carer's Allowance?

Carer's Allowance is £81.90 per week (2025/26), or approximately £4,259 per year. It is taxable income but if it is your only income, you are unlikely to exceed the tax-free Personal Allowance. You cannot receive Carer's Allowance alongside your full State Pension — but having the underlying entitlement can increase other benefits.

Can I work and claim Carer's Allowance?

Yes, but you must earn no more than £151 per week after deductions (tax, NI, pension contributions, and 50% of childcare costs). If you earn over this threshold, you lose the entire Carer's Allowance — there is no taper. You must still provide at least 35 hours of care per week.

What happens to Carer's Allowance when I reach State Pension age?

You cannot receive Carer's Allowance at the same time as your State Pension. However, having an 'underlying entitlement' to Carer's Allowance can increase your Pension Credit by the carer's premium (£45.60/week). Always claim Carer's Allowance even if you receive State Pension — it can unlock additional money.

Carer's Allowance Guide UK — Financial Support for Carers | PocketWise

Around 5 million people in the UK provide unpaid care for a family member or friend. Despite saving the economy billions each year, many carers are unaware of the financial support available to them. Carer’s Allowance and related benefits can provide essential income.

Carer’s Allowance

Eligibility

Requirement	Detail
Hours of care	At least 35 hours per week
Person you care for	Must receive a qualifying disability benefit (PIP daily living, DLA middle/highest care, Attendance Allowance)
Your age	16 or over
Your earnings	No more than £151/week after deductions
Your education	Not in full-time education (21+ hours/week supervised study)
Residency	Live in England, Scotland, or Wales

Payment

Feature	Detail
Amount	£81.90/week (2025/26)
Annual total	£4,259
Paid	Every week or every 4 weeks
Taxable	Yes (but usually covered by Personal Allowance)

Earnings Limit

Deduction	Can Be Subtracted from Earnings
Income tax	Yes
National Insurance	Yes
Pension contributions	Yes
50% of childcare costs	Yes

Example: You earn £180/week gross. After tax (£14), NI (£5), and pension (£9) = £152 net. You do not qualify (1 over the limit). If you increase your pension contribution by £1/week, net = £151. You now qualify.

Impact on Other Benefits

If You Receive Universal Credit

Scenario	Effect
Claiming Carer’s Allowance	UC carer element (£198.31/month) added
Not claiming CA (but providing 35+ hours)	Can still claim UC carer element
CA amount	Deducted from UC (but carer element is higher, so you gain overall)

Net benefit: Claiming Carer’s Allowance typically increases your UC by around £116/month.

If You Receive State Pension

Scenario	Effect
State Pension > Carer’s Allowance	Carer’s Allowance not paid (but underlying entitlement)
State Pension < Carer’s Allowance	Difference paid as Carer’s Allowance
Pension Credit claim	Carer’s premium of £45.60/week added

Key point: Always claim Carer’s Allowance even if you receive State Pension — the underlying entitlement can increase Pension Credit by £2,371/year.

National Insurance Credits

Benefit	Detail
Carer’s Credit	Free NI credits towards State Pension
Automatic with CA	If receiving Carer’s Allowance, credits are automatic
Claim separately	If providing 20+ hours of care but not on CA
Why it matters	Protects your State Pension entitlement

How to Claim

Method	Detail
Online	gov.uk/carers-allowance (fastest)
Phone	0800 731 0297
Post	Download claim form from GOV.UK
Backdating	Up to 3 months (if eligible for that period)

What You Need

Your National Insurance number
Bank account details
Details of the person you care for (NI number, disability benefit)
Information about your earnings (if working)
Details of your education (if studying)

Other Support for Carers

Support	Detail
Carer’s Assessment	Free assessment from your local council of your support needs
Respite care	Short-term care for the person you look after (arranged by council)
Carers UK helpline	0808 808 7777 (advice and support)
Carer’s breaks	Holidays and short breaks (some funded by charities)
Carer’s discount	Council tax discount for some live-in carers
Local carer groups	Peer support (find via your council or Carers UK)
Warm Home Discount	If on means-tested benefits
Free flu jab	Available to all unpaid carers

Carer’s Allowance Supplement (Scotland Only)

Feature	Detail
Amount	£288.60 (paid twice yearly = £577.20/year)
Who qualifies	Anyone in Scotland receiving Carer’s Allowance
Application	Automatic (no need to apply)

Financial Planning as a Carer

Action	Why
Claim all benefits you are entitled to	Use Turn2us benefits calculator
Check NI record	Ensure you are getting credits towards State Pension
Budget carefully	Carer income is low; every pound matters
Build emergency fund	Even small amounts provide a safety net
Check local council support	Free services, grants, and equipment
Plan for the future	What happens if caring responsibilities change?

For more on the benefits system, see our state benefits overview and disability benefits guide.