Who can claim Carer's Allowance
To qualify for Carer's Allowance you must be aged 16 or over, spend at least 35 hours per week caring for a person who receives the PIP daily living component (either rate), DLA care component at the middle or highest rate, Attendance Allowance, or the Armed Forces Independence Payment. You must not be in full-time education and your earnings (after deductions) must be below £151 per week in 2026/27.
The earnings limit and what can be deducted
The £151 per week earnings limit is calculated after certain deductions: income tax and National Insurance, half of any private or occupational pension contributions, and allowable expenses if you are self-employed. If you earn £160 per week gross but pay £20 in NI and income tax, your net earnings for Carer's Allowance purposes are £140, which is below the threshold and you qualify.
How Carer's Allowance interacts with Universal Credit
If you receive Carer's Allowance and claim UC, the Carer's Allowance is treated as unearned income and reduces your UC pound for pound. But UC also includes a carer element of £198.31 per month if you meet the caring conditions. The net effect is that on UC, Carer's Allowance does not boost your total income by the full amount; it broadly replaces part of UC rather than stacking on top.
Underlying entitlement to Carer's Allowance
If you are on UC and would qualify for Carer's Allowance but Carer's Allowance would reduce your UC by more than it pays, you may not receive any actual Carer's Allowance payment. But you can still have an underlying entitlement. This matters because it preserves your National Insurance credits for State Pension purposes, even if you receive no money. Claiming Carer's Allowance even with underlying entitlement can still be worth doing.
The impact on the person being cared for
If someone claims Carer's Allowance for caring for you, and you are on certain means-tested benefits, the severe disability premium or equivalent in your claim may be affected. On UC, receiving PIP daily living enhanced rate can trigger the UC LCWRA element, but a carer claiming Carer's Allowance for you can affect whether you receive the severe disability addition. Check carefully if you are the person being cared for and on means-tested benefits.
Applying for Carer's Allowance
Apply online at gov.uk/carers-allowance. You will need your NI number, bank account details, employment details and information about the person you care for including their benefit award reference. Applications are processed by the Carer's Allowance Unit. You can also apply by post if you cannot use the online service. Once awarded, Carer's Allowance is paid weekly or in arrears, usually by bank transfer.