Carer's Allowance is the main state benefit available to people who provide regular, substantial unpaid care for someone with a disability, illness or similar need. Despite being a long-standing benefit, it is significantly underclaimed. Many people who provide care either do not know it exists, assume they will not qualify, or find the eligibility rules confusing.
What does it pay?
Carer's Allowance pays £81.90 per week (as of April 2025, with rates reviewed annually). It is taxable income, so if you have other income it may affect your tax position. It is also an overlapping benefit, which means claiming it can reduce other benefits you or the person you care for may receive. This interaction is one of the trickier aspects of the benefit and is worth checking before you claim.
Who can claim?
To claim Carer's Allowance you need to be aged 16 or over, spend at least 35 hours a week caring for someone, not be in full-time education, and earn no more than £151 per week net after certain deductions (the earnings threshold changes periodically, so always check the current figure at gov.uk).
The person you care for must be receiving a qualifying disability benefit. This includes Personal Independence Payment (the daily living component at either rate), Disability Living Allowance (the care component at the middle or highest rate), Attendance Allowance, or Constant Attendance Allowance. The person you care for does not have to live with you.
What counts as caring?
The 35 hours a week of caring does not have to be a single block and does not need to involve physical care only. It can include helping with medication, accompanying someone to medical appointments, doing their shopping, cooking, cleaning, helping them get dressed, or simply being on hand to respond to their needs. There is no formal record-keeping required but being able to describe how you spend your time caring is useful if your claim is queried.
What about the earnings limit?
The earnings limit applies to net earnings after tax, National Insurance, half of any pension contributions, and any allowable expenses if you are self-employed. Some people find they earn slightly above the threshold and that a small adjustment to pension contributions or salary sacrifice takes them below it, making them eligible. This is worth calculating carefully if you are close to the limit.
Carer's Credit
If you provide at least 20 hours of care a week but do not meet the full criteria for Carer's Allowance, you may be eligible for Carer's Credit instead. This is not a cash payment but a National Insurance credit that protects your State Pension entitlement during years when you are not earning enough to build NI contributions through work.
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Ask Fin provides general guidance only. Carer's Allowance rules and rates change. Always check current eligibility at gov.uk/carers-allowance or speak with Citizens Advice.