Carer's Allowance 2025: The Full Guide
Carer's Allowance is the main state benefit for unpaid carers in the UK. It is designed to provide financial support to people who give up paid work (or reduce their hours) to care for a disabled or elderly person. Despite being the main benefit for carers, it is one of the lowest-rate benefits in the UK — making it essential to understand what additional support may be available alongside it.
| Key Fact | 2025/26 Rate / Rule |
|---|---|
| Weekly rate | £81.90 |
| Annual amount | £4,258.80 |
| Monthly amount (approx.) | £354.90 |
| Minimum care hours | 35 hours per week |
| Earnings limit (net weekly) | £151 |
| Minimum age | 16 |
| Full-time education restriction | 21+ hours/week disqualifies |
| Carer's Premium (means-tested benefits) | £45.60/week |
| Carer's Addition (Pension Credit) | £45.60/week |
Eligibility Criteria for Carer's Allowance
To qualify for Carer's Allowance, all of the following conditions must be met:
1. Age: 16 or over
There is no upper age limit for Carer's Allowance — you can claim it at any age from 16 upwards, including when you are receiving a State Pension. However, the overlapping benefits rule may prevent full payment if you receive a State Pension (see below).
2. Care for 35+ hours per week
You must provide at least 35 hours of care per week to the disabled person. This does not have to be 35 hours on weekdays — it can include evenings, weekends, or overnight care. The care does not have to be all physical care; it can include supervision, emotional support, and helping with personal care.
3. The person you care for must receive a qualifying benefit
The person you care for must already be receiving one of these benefits:
- Personal Independence Payment (PIP) — the daily living component (standard or enhanced rate)
- Attendance Allowance (either rate)
- Disability Living Allowance (DLA) — the care component at middle or highest rate
- Armed Forces Independence Payment
- Child Disability Payment — care component (middle or highest rate) — Scotland only
- Adult Disability Payment — daily living component — Scotland only
- Constant Attendance Allowance (paid with Industrial Injuries Disablement Benefit or War Pensions)
4. Earnings limit: £151/week net
From April 2025, the earnings limit is £151 per week net. This is after deducting:
- Income tax
- National Insurance contributions
- Half of any occupational or personal pension contributions
- Permitted work-related expenses (e.g., childcare costs, care costs for the person you care for while you work)
If your net earnings exceed £151/week in any week, you are not entitled to Carer's Allowance for that week. This can be an issue for carers who work variable hours.
5. Not in full-time education
If you study for 21 or more hours per week, you cannot receive Carer's Allowance. Part-time study of under 21 hours is permitted.
6. Presence in Great Britain
You must normally be resident in Great Britain (England, Scotland, or Wales). Different rules apply in Northern Ireland. You must have been in Great Britain for at least 2 of the last 3 years (with some exceptions).
How Carer's Allowance Affects Other Benefits
Carer's Allowance is counted as income for means-tested benefits, which means it can reduce other benefits you receive. However, there is an important counterbalance: receiving Carer's Allowance (or having an underlying award) entitles you to additional premiums in means-tested benefits.
Carer's Premium (in means-tested benefits)
If you receive Carer's Allowance (or have an underlying entitlement), you can get a Carer's Premium of £45.60 per week added to your Housing Benefit, Income-Related Employment and Support Allowance, or Income Support. In Universal Credit, the equivalent is the Carer's Element of £198.31 per month (2025/26). This largely offsets the impact of Carer's Allowance being counted as income.
Pension Credit and Carer's Addition
If you are pension age and receive Carer's Allowance (or have an underlying entitlement), the Pension Credit Carer's Addition of £45.60 per week is added to your Pension Credit. This can significantly increase the total support you receive.
Severe Disability Premium Warning
If the person you care for receives the Severe Disability Premium (in old-style means-tested benefits), this premium will be removed when someone claims Carer's Allowance for caring for them. This can reduce the cared-for person's income. Always check the impact on the cared-for person's benefits before claiming Carer's Allowance.
The Overlapping Benefits Rule
Carer's Allowance cannot normally be paid at the same time as certain other benefits of similar value due to the "overlapping benefits" rules. The main benefits that overlap with Carer's Allowance include:
- State Pension (if £81.90/week or more)
- New-style Employment and Support Allowance (contribution-based)
- Contribution-based Jobseeker's Allowance
- Maternity Allowance
- Incapacity Benefit (legacy)
If your overlapping benefit is equal to or more than Carer's Allowance, you will have an underlying award — you are entitled in principle but receive £0 in Carer's Allowance. However, you still receive the Carer's Premium or Carer's Addition in means-tested benefits.
National Insurance Credits
Claiming Carer's Allowance — or even having an underlying entitlement — gives you Class 1 National Insurance credits. These protect your State Pension entitlement. Each year of Carer's Allowance counts as a qualifying year for the State Pension, provided you are under State Pension age. This is an important benefit of claiming even when the cash payment is low.
Breaks in Care and the 4-Week Rule
You can take a break from caring for up to 4 weeks in any 26-week period (approximately 6 months) without losing Carer's Allowance. If the person you care for goes into hospital or respite care, you may be able to continue receiving Carer's Allowance for a short period. If the break exceeds 4 weeks, your Carer's Allowance will stop.
Carer's Leave Act 2023
From April 2024, the Carer's Leave Act 2023 gives employed carers a statutory right to one week (5 working days) of unpaid Carer's Leave per year. This does not affect Carer's Allowance eligibility. Carer's Leave allows carers to arrange care without fear of dismissal or disciplinary action.
Frequently Asked Questions
Carer's Allowance is £81.90 per week from April 2025. This is £354.90/month (approx.) or £4,258.80/year. It is uprated annually in April in line with the Consumer Prices Index (CPI).
You must be 16 or over, care for someone at least 35 hours per week, earn no more than £151/week net from work, not be in full-time education (21+ hours), and the person you care for must receive a qualifying disability benefit (PIP daily living, Attendance Allowance, or DLA care component at middle/highest rate).
You can apply for Carer's Allowance while receiving a State Pension, but the overlapping benefits rule means you cannot receive both in full. If your State Pension is £81.90/week or more, you get £0 in Carer's Allowance (but still have an underlying entitlement). You should still claim the Carer's Addition in Pension Credit, which adds £45.60/week to your Pension Credit.
Carer's Allowance counts as income for means-tested benefits (Universal Credit, Pension Credit, Housing Benefit). However, receiving Carer's Allowance entitles you to the Carer's Element in UC (£198.31/month) or Carer's Premium in other benefits (£45.60/week), which significantly offsets any income reduction.
The earnings limit from April 2025 is £151 per week net — after deductions of income tax, National Insurance, half of any pension contributions, and permitted work expenses. If you earn more than £151/week net in any given week, you are not entitled to Carer's Allowance for that week.
An underlying award means you are entitled to Carer's Allowance in principle but receive nothing because another overlapping benefit (e.g., State Pension) is at least as high. You still benefit from an underlying award because it qualifies you for the Carer's Addition in Pension Credit and the Carer's Premium in other means-tested benefits.
Claiming Carer's Allowance does not directly reduce the cared-for person's disability benefits. However, if they receive the Severe Disability Premium in a means-tested benefit, that premium will be removed when someone becomes their named carer. This is an important consideration — always check the impact before making a claim.