Carer's Allowance explained 2026/27, rates, eligibility and how it affects other benefits
Carer's Allowance is £86.45 a week in 2026/27 (£345.80 every 4 weeks) if you care for someone for at least 35 hours a week and they get a qualifying disability benefit such as PIP daily living or Attendance Allowance. You can earn up to £204 a week after tax, National Insurance and expenses. It is the main benefit for people providing substantial unpaid care, but the earnings limit, the overlap with other benefits and the 'underlying entitlement' rule mean it works differently from most payments. This page explains who qualifies, the earnings limit in practice, and how claiming affects your Universal Credit and State Pension.
Who qualifies for Carer's Allowance
You can claim Carer's Allowance if you spend at least 35 hours a week caring for someone who receives a qualifying disability benefit, specifically the daily living component of PIP (standard or enhanced), the middle or highest care component of DLA, Attendance Allowance, the daily living component of ADP (Scotland), or Armed Forces Independence Payment. The person you care for does not have to live with you. You must be 16 or over, not in full-time education, and your net earnings after allowable deductions must not exceed £204 a week in 2026/27.
The £204 weekly earnings limit
The earnings threshold for Carer's Allowance is £204 a week net in 2026/27, up from £196 in 2025/26. Net earnings means after tax, National Insurance and half of any pension contributions. Certain work expenses for care or disability can also be deducted. If your net earnings go above £204 in any week, you lose the full Carer's Allowance for that week, there is no taper. This makes managing earnings around part-time work particularly important, and it is worth calculating your net figure carefully before assuming you are over or under the limit.
Carer's Allowance and Universal Credit, the 'underlying entitlement' rule
If you receive Universal Credit, receiving Carer's Allowance at the same time can feel counterintuitive. UC is reduced by £1 for every £1 of Carer's Allowance you receive, so the two payments largely cancel out for the Carer's Allowance element. However, having an 'underlying entitlement' to Carer's Allowance (meaning you meet the criteria even if UC offsets the payment) adds a carer element to your Universal Credit of £209.34 a month in 2026/27. This extra element is worth significantly more than the Carer's Allowance itself, making the interaction work in your favour overall.
Effect on State Pension and National Insurance credits
Carer's Allowance comes with Carer's Credits if you are not already paying National Insurance. These protect your State Pension record during periods when caring prevents paid work. If you have reached State Pension age, you cannot receive Carer's Allowance, but you may still qualify for a carer addition within Pension Credit (worth £48.15 a week in 2026/27 if you qualify). Importantly, Carer's Allowance is taxable, which can affect your income tax position if you also have part-time earnings or a private pension.
What happens if the person you care for loses their benefit
Carer's Allowance is tied to the disability benefit of the person you care for. If their PIP, DLA or Attendance Allowance is reduced or stopped, for example after a reassessment, and they no longer receive a qualifying benefit, your Carer's Allowance must stop too. You must report changes to DWP promptly. Continuing to claim after eligibility ends creates an overpayment, which DWP will seek to recover. If you believe the decision on the person you care for is wrong, supporting their appeal is worth doing, it could restore both benefits.
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Frequently asked questions
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Independent guide only. Written using published 2026/27 DWP and HMRC figures. This is not an official DWP or HMRC tool and does not constitute an entitlement decision. Figures shown are illustrative: actual awards depend on individual circumstances. For case-specific guidance, contact Citizens Advice or a welfare-rights adviser. Methodology · Editorial standards