Carer's Allowance

To be eligible for Carer's Allowance you must:

• Be aged 16 or over
• Spend at least 35 hours per week caring for someone with a severe disability
• The person you care for must receive one of the following: PIP daily living component (either rate), Attendance Allowance (either rate), DLA care component at the middle or higher rate, Constant Attendance Allowance at a certain rate, or Armed Forces Independence Payment
• Earn no more than £151 per week net (after tax, National Insurance, pension contributions, and some expenses)
• Not be in full-time education (21 hours or more per week of supervised study)
• Be habitually resident in the UK

You do not have to be related to or live with the person you care for. Multiple family members caring for the same person cannot all claim Carer's Allowance for that person — only one carer can claim per disabled person.

The earnings limit for Carer's Allowance is one of its most significant restrictions. In 2024–25, your net earnings must be no more than £151 per week (the equivalent of 16 hours at the National Living Wage). If your net earnings exceed this by even £1 in a week, you lose your entire Carer's Allowance for that week.

Net earnings for this purpose means your gross weekly earnings minus income tax, Class 1 National Insurance, and up to 50% of any pension contributions you make. You can also deduct certain expenses that you incur solely in order to enable you to care (for example, replacement care while you are at work), which is known as a "carer's disregard".

Self-employed carers must calculate their net profit after allowable expenses. The calculation can be complex and it is worth checking with Citizens Advice or Carers UK if you are close to the limit.

The earnings limit is reviewed annually in April alongside the benefit rate. The government has announced plans to raise the limit gradually, so check the current figure on GOV.UK before claiming.

The interaction between Carer's Allowance and other benefits is complex. Key points to understand:

Severe Disability Premium: If the person you care for receives a means-tested benefit that includes a Severe Disability Premium (such as Pension Credit, legacy Housing Benefit, or Income Support), your claim for Carer's Allowance may cause that premium to be removed from their benefit, potentially leaving them worse off. Always check this before claiming.

Universal Credit: If you receive Universal Credit, you will receive a carer element (£198.31/month in 2024–25) instead of Carer's Allowance or in addition to an underlying entitlement. The carer element in UC is more generous than Carer's Allowance itself. UC claimants should still notify the DWP of caring responsibilities even if they do not claim Carer's Allowance separately.

State Pension: You cannot be paid both Carer's Allowance and State Pension if your pension is at or above the level of Carer's Allowance. However, you should still claim — you will have an "underlying entitlement" to Carer's Allowance which can give you access to the carer premium in Pension Credit and other benefits, worth significantly more than the allowance itself.

National Insurance credits: Receiving Carer's Allowance gives you Class 1 NI credits, protecting your State Pension entitlement. If you do not qualify for Carer's Allowance, look into Carer's Credit instead, which also provides NI credits for carers.

You can claim Carer's Allowance:

• Online at gov.uk/carers-allowance/how-to-claim
• By post using the DS700 form
• By phone on 0800 731 0297

You will need information about yourself and the person you care for, including their National Insurance number and the qualifying benefit they receive. You can backdate a claim by up to three months if you were eligible earlier.

Notify the Carer's Allowance Unit of any changes in circumstances, including changes to your earnings, hours of care, or changes to the cared-for person's circumstances (for example, if they move into a care home or their disability benefit is changed).