Carers Allowance Rates 2025/26 — What You Can Claim?

Updated March 2026: This post has been refreshed with the latest Carer's Allowance rates and earnings thresholds, including the significant changes that came into effect from April 2025.

Carer's Allowance is the main state benefit for people who provide unpaid care to a friend or family member. If you spend at least 35 hours a week caring for someone who receives certain disability-related benefits, you may be entitled to claim it.

Here is everything you need to know about the current rates, eligibility rules, and what is changing.

How much is Carer's Allowance in 2025/26?

For the 2025/26 tax year, Carer's Allowance is £83.30 per week. That works out to £333.20 every four weeks, or £4,331.60 over a full year.

This is a 1.7% increase from the previous year, when the rate was £81.90 per week, in line with the September 2024 Consumer Price Index figure. For context, the rate was £76.75 in 2023/24, £81.90 in 2024/25, and is now £83.30 in 2025/26.

How much can you earn and still claim Carer's Allowance?

From 7 April 2025, the earnings threshold rose significantly from £151 to £196 per week. This is the biggest single increase to the earnings limit since Carer's Allowance was first introduced in 1976, and it affects thousands of working carers across the UK.

The change was announced in the Autumn Budget 2024. It means carers can now work up to 16 hours per week at the National Living Wage (£12.21 per hour from April 2025) and still remain eligible for the full allowance.

For the first time, the earnings threshold is permanently linked to 16 times the National Living Wage. This means it will rise automatically as the minimum wage increases, so carers will no longer be penalised simply for receiving a pay rise.

One important caveat: the earnings limit applies to your net earnings after deductions, not your gross pay. Allowable deductions include income tax, National Insurance contributions, half of any pension contributions you make, and certain childcare costs.

The cliff edge: if your net earnings go even slightly over the £196 threshold, you lose the entire weekly payment with no taper. The government has committed to exploring a taper mechanism modelled on Universal Credit, but as of March 2026 no timeline for this has been confirmed.

What is changing in April 2026?

From 7 April 2026, Carer's Allowance will increase to £86.45 per week (£4,495.40 per year), up from £83.30 in 2025/26. The earnings threshold will also rise from £196 to £204 per week.

Who is eligible for Carer's Allowance?

To qualify for Carer's Allowance, you must:

• Be aged 16 or over
• Spend at least 35 hours a week caring for someone with a disability or health condition
• Earn no more than £196 per week net (2025/26 figure) after allowable deductions
• Not be in full-time education (21 or more hours of supervised study per week counts as full-time)
• Have lived in the UK for at least 2 of the last 3 years

The person you care for must be receiving one of the following qualifying disability benefits:

• The daily living component of Personal Independence Payment (PIP)
• The middle or highest care rate of Disability Living Allowance (DLA)
• Attendance Allowance
• Constant Attendance Allowance (at or above the normal maximum rate)
• Armed Forces Independence Payment

You do not need to live with the person you care for, and you do not need to be related to them. However, if someone else also cares for the same person, only one of you can claim Carer's Allowance.

Does Carer's Allowance affect other benefits?

State Pension: You cannot receive the full amount of both Carer's Allowance and your State Pension simultaneously. If your State Pension is £83.30 or more per week, you will not receive Carer's Allowance as a payment, but you may still have an underlying entitlement that boosts your Pension Credit.

Universal Credit: If you receive Universal Credit and provide at least 35 hours of care per week, you may also qualify for the Carer Element, worth £201.68 per month in 2025/26. This is available even where no direct Carer's Allowance payment is made.

Pension Credit: Carers may be entitled to the Carer Addition within Pension Credit, worth £46.40 per week in 2025/26.

Attendance Allowance: The Attendance Allowance received by the person you care for is not affected by your claim.

Benefit cap: Households where someone receives Carer's Allowance are exempt from the benefit cap.

The Carer's Allowance overpayment scandal

In November 2025, the DWP announced a large-scale review of overpayment cases following the independent Sayce Review. It found that thousands of carers had unknowingly exceeded the earnings limit due to confusing government guidance, particularly around how fluctuating earnings (such as holiday pay landing in a single week) were treated. Some carers had built up debts of up to £20,000 without realising anything was wrong.

The government accepted that carers were "let down" by unclear rules. All earnings-related overpayment cases from 2015 to summer 2025 are being reassessed. Where debts are found to have been overstated, they will be reduced or written off. Refunds will be issued where money has already been repaid.

If you have an outstanding Carer's Allowance overpayment debt, contact the DWP or seek independent advice from Citizens Advice.

Is Carer's Allowance taxable?

Yes, Carer's Allowance counts as taxable income. However, at £83.30 per week (£4,331.60 per year), it sits well below the personal tax allowance of £12,570, so it will not result in a tax bill on its own. If you have other income, the combined total may push you over the threshold. If so, HMRC can adjust your PAYE code to collect any additional tax owed.

How to apply

You can apply for Carer's Allowance online at GOV.UK. You will need your National Insurance number, your bank details, information about any employment income, and details of the qualifying benefit received by the person you care for. Applications typically take around 30 minutes, and decisions are usually made within six weeks.

A note on professional carers

Carer's Allowance is for unpaid family carers, not for professional carers who are paid for their work. If you are a professional or community carer looking for flexible, well-paid work with local families, Gladys matches carers directly with clients across Bristol, Bath, Hampshire, and the South of England, without an agency taking a cut of your earnings.

This post was last updated in March 2026. Figures are correct for the 2025/26 tax year. Always verify rates at GOV.UK or seek personalised guidance from Citizens Advice.