Carer's Allowance 2026 | Rates & Eligibility Guide

The Carer's Allowance is the main welfare benefit for people who provide regular and substantial care to a disabled person. For the 2026 period (based on rates set from April 2025), the weekly rate stands at £81.90. This comprehensive guide details the eligibility criteria, earnings limits, and how claiming might affect your other finances.

1. What is Carer's Allowance?

Carer's Allowance is a benefit distributed by the Department for Work and Pensions (DWP) to individuals who spend at least 35 hours a week caring for someone with a disability. It is not means-tested against your capital or savings, meaning you can have savings and still claim. However, it is means-tested against your earnings if you are working.

It is important to note that you do not have to be related to the person you care for, nor do you need to live with them. The critical factors are the hours of care provided and the nature of the disability benefit the recipient receives.

2. The 2026 Payment Rates

From April 2025, the rate for Carer's Allowance was set at £81.90 per week. This rate continues into early 2026. This represents a vital source of income for full-time carers, totaling approximately £4,258.80 over a full 52-week year.

How it is paid

You can choose to be paid weekly in advance or every four weeks. Payments are made directly into your bank, building society, or credit union account.

3. Eligibility Criteria

To qualify for the £81.90 weekly payment, you must meet all of the following conditions:

• You are 16 years of age or older.
• You spend at least 35 hours a week caring for someone.
• You have been in England, Scotland, or Wales for at least 2 of the last 3 years.
• You usually live in the UK, Ireland, Isle of Man, or Channel Islands.
• You are not in full-time education (defined as 21 hours or more a week of supervised study).
• Your earnings are £151 or less a week after tax, National Insurance, and allowable expenses.

The Person You Care For

The person you are caring for must be receiving one of the following qualifying disability benefits:

• Personal Independence Payment (PIP) - daily living component.
• Disability Living Allowance (DLA) - the middle or highest care rate.
• Attendance Allowance.
• Constant Attendance Allowance (at or above the normal maximum rate with an Industrial Injuries Disablement Benefit).
• Constant Attendance Allowance (at the basic (full day) rate with a War Disablement Pension).
• Armed Forces Independence Payment.
• Child Disability Payment (Scotland) - the middle or highest care rate.
• Adult Disability Payment (Scotland) - daily living component.

If the person you care for stops receiving their qualifying benefit, your Carer's Allowance will usually stop as well.

4. Earnings Limit: The £151 Rule

One of the most common stumbling blocks for claimants is the earnings limit. For the 2025/2026 tax year, you can earn up to £151 per week and still receive the full allowance. If you earn even £1 over this limit, you lose the entire benefit for that week; there is no taper.

What counts as earnings?

The £151 limit applies to your "net" earnings. This means you calculate your income after deducting:

• Income Tax.
• National Insurance contributions.
• Half of your pension contributions.
• Expenses you must pay to do your job (e.g., special equipment, but not travel to work).
• Costs you pay for the care of the disabled person (or your children) while you are at work.

Example: If you earn £180 a week but pay £20 in tax/NI and contribute £20 to a pension (half of which is £10), your relevant earnings are £150. You would qualify.

5. Impact on Other Benefits (Overlapping Rules)

The "Overlapping Benefit" rules can be complex. You cannot usually receive the full amount of Carer's Allowance if you are also receiving other "income-replacement" benefits. The most common scenario involves the State Pension.

Carer's Allowance and State Pension

If your State Pension is more than £81.90 a week, you will not be paid Carer's Allowance. However, you should still claim it to establish an "underlying entitlement." This entitlement can increase other means-tested benefits (like Pension Credit) by adding a Carer Addition/Premium.

If your State Pension is less than £81.90 a week, the DWP pays your State Pension in full and tops it up with Carer's Allowance to reach the £81.90 total.

6. Carer's Allowance and Universal Credit

Many people claim both Universal Credit (UC) and Carer's Allowance. It is crucial to understand how they interact.

• Deduction: Your Carer's Allowance counts as income for Universal Credit. For every £1 of Carer's Allowance you receive, your Universal Credit payment is reduced by £1.
• Carer Element: However, because you are eligible for Carer's Allowance, you qualify for the "Carer Element" within Universal Credit. This is an additional amount included in your UC calculation.
• Carer Premium: The Carer Element (sometimes referred to as the Carer Premium in legacy benefits) is worth approximately £198.31 per month (rates vary slightly by tax year and benefit type, e.g., approx £42.75/week value in legacy premiums).

Net Result: While the monetary value of the Carer's Allowance is deducted from UC, the addition of the Carer Element usually means you are financially better off claiming both.

7. How to Apply

You can apply for Carer's Allowance online at the GOV.UK website or by post. The online process is generally faster.

What you will need:

• Your National Insurance number.
• Your bank or building society details.
• Employment details (dates and earnings) if you are working.
• P45 if you have recently finished work.
• Course details if you are studying.
• The Date of Birth and address of the person you care for.
• The National Insurance number of the person you care for (if they are 16 or over).
• Their Disability Living Allowance reference if they are under 16.

Backdating your claim

You can ask for your claim to be backdated for up to 3 months, provided you met the eligibility criteria during that time. This can result in a significant lump sum payment upon approval.

8. Reporting Changes

You must report any changes in your circumstances immediately. Failure to do so could result in an overpayment which you would have to pay back, or a penalty.

Common changes include:

• Your earnings increase above £151/week.
• You stop caring for the person for 35 hours a week.
• The person you care for goes into hospital or a care home.
• You take a holiday (breaks in care rules apply).
• You enter full-time education.

Frequently Asked Questions