Carer's Allowance Earnings Test Calculator
Check if your earnings are below the Carer's Allowance weekly earnings limit (£196/week from April 2025). Calculates net earnings after permitted expenses, tax, and NIC deductions.
Frequently Asked Questions
What is the Carer's Allowance earnings limit?
From April 2025, you can earn up to £196 per week (net) and still receive Carer's Allowance. This is the 'net earnings' after deducting income tax, National Insurance, and permitted expenses (for self-employed). Childcare costs for children under 16 can also be deducted.
What counts as 'net earnings' for the test?
For employed workers: gross pay minus income tax and employee NIC. For self-employed: gross receipts minus allowable business expenses, then minus income tax and Class 4 NIC. Pension contributions can also be deducted in certain circumstances.
How much is Carer's Allowance?
From April 2025, Carer's Allowance is £81.90 per week (£4,258.80 per year). This is increased each April in line with earnings (currently under the 'earnings link' uprating policy).
What benefits does the person being cared for need?
The person you care for must receive one of: Personal Independence Payment (daily living component at either rate), Disability Living Allowance (care component at the middle or highest rate), Attendance Allowance, Constant Attendance Allowance, or Armed Forces Independence Payment.
Can I claim Carer's Allowance if I receive State Pension?
You can apply, but if your State Pension is equal to or higher than the Carer's Allowance rate, you won't receive any payment. However, you retain 'underlying entitlement' to Carer's Allowance which can be used to qualify for other means-tested benefits like Pension Credit Carer's Addition.
How does Carer's Allowance affect other benefits?
If you receive Universal Credit, income-based JSA/ESA, or Pension Credit, claiming Carer's Allowance can increase these benefits through the 'carer element' or 'carer's premium/addition'. The Universal Credit carer element is worth £198.31/month (2026), often more than Carer's Allowance itself.
Can two people claim Carer's Allowance for the same disabled person?
No — only one carer can receive Carer's Allowance for the same disabled person at any time. If two people share caring responsibilities, they must agree who will claim. The other carer may still qualify for Carer's Credit (NIC protection).
What is Carer's Credit?
Carer's Credit is a NIC credit for people providing 20+ hours of caring per week who don't receive Carer's Allowance (e.g., because earnings are too high, or they're caring for someone who doesn't receive a qualifying benefit). Credits protect State Pension entitlement.