Carer's Allowance is the main benefit for people providing substantial unpaid care. In 2026/27 it pays £81.90 a week — but the earnings limit, the interaction with other benefits and the 'underlying entitlement' rule mean it works differently from most other payments. This page explains who qualifies, what the earnings limit means in practice, and how claiming affects your Universal Credit and State Pension.
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 £151 a week in 2026/27.
The earnings threshold for Carer's Allowance is £151 a week net in 2026/27 — up from £139 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 £151 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.
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 £198.31 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.
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.
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.
Estimate monthly Universal Credit using household type, children, housing costs, childcare, earnings and savings. Independent UK estimator.
Estimate Guarantee Credit using weekly income, savings and key additions such as severe disability or carer status.
A practical UK guide to the main benefits and support routes for low income, disability, children, rent and pension-age households.
A plain-English guide to how Universal Credit works in 2026/27 — what drives the award, how earnings and savings affect it, and what else to check alongside it.
Independent guide: This scenario explanation uses published GOV.UK rules and thresholds for 2026/27. It is not an official DWP or HMRC tool. Use the calculators linked above to estimate your specific position, and contact Citizens Advice or a welfare-rights adviser for case-specific guidance.