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Carer's Allowance and Carer's Credit: what unpaid carers can claim in 2026/27

Around £86 a week, an earnings limit around £200, the overlapping benefit rule, NI credits and the Universal Credit carer element

TaxHub editorial teamLast reviewed 26 September 2026 · 4 min read · Checked against DWP, HMRC and gov.uk

Millions of people care for a relative or friend without pay, and many claim nothing for it. Carer's Allowance is the main benefit, but it interacts awkwardly with the State Pension and Universal Credit, and the earnings limit catches people who take on part-time work. This guide explains the allowance, the earnings rule, Carer's Credit for your National Insurance record and the carer element in Universal Credit.

Key points: Carer's Allowance is around £86 a week. You must care 35 hours a week or more for someone on a qualifying disability benefit. Earnings limit around £200 a week after deductions. State Pension usually cancels the payment but not the underlying entitlement. Check exact figures on gov.uk.

Carer's Allowance

You qualify if all of these apply:

  • You spend at least 35 hours a week caring for someone.
  • That person receives a qualifying benefit: Attendance Allowance, the daily living part of Personal Independence Payment, the middle or higher care rate of Disability Living Allowance, or certain other disability benefits.
  • You are 16 or over and not in full-time education.
  • Your earnings after tax, National Insurance and certain expenses are at or below the weekly limit, currently around £200.

The allowance is around £86 a week in 2026/27. It is taxable, although most carers do not earn enough to pay tax on it. Only one person can claim for each person cared for, and you cannot claim for two people at once. The exact rates are on gov.uk.

The earnings limit

The limit is a cliff edge. Earn £1 over it in a week and you lose the whole allowance for that week. Because the limit is checked on net earnings, some costs reduce the figure that counts: half of any pension contributions, and some care costs for the person you look after or for your children while you work.

Overpayments have been a serious problem. Carers who drifted over the limit through a pay rise or extra shifts have been asked to repay thousands. Check your earnings against the limit every time your pay changes, and report it to the Carer's Allowance Unit at once if you are over.

The overlapping benefit rule

Carer's Allowance cannot be paid on top of certain other benefits, including the State Pension. If your State Pension is more than the Carer's Allowance rate, which it is for almost everyone, you receive no Carer's Allowance at all.

You should still claim. A successful claim gives you an underlying entitlement, and that entitlement adds a carer addition to Pension Credit, Housing Benefit and Council Tax Reduction. For a pensioner carer on a low income, the carer addition to Pension Credit can be worth more than £45 a week even though the Carer's Allowance itself is never paid.

Carer's Credit for your National Insurance record

If you care for 20 hours a week or more but do not qualify for Carer's Allowance, perhaps because the earnings limit or the 35-hour rule rules you out, you can claim Carer's Credit. It pays no money, but it adds National Insurance credits to your record for each week of caring, protecting your State Pension. Carer's Allowance claimants get credits automatically; Carer's Credit is for everyone else. The person you care for should normally be on a qualifying benefit, but a care certificate signed by a health professional can substitute.

Gaps in NI records are one of the main reasons people retire on less than the full State Pension of £241.30 a week. If you have been caring in recent years without a claim, ask about backdating.

Carers on Universal Credit

Universal Credit includes a carer element for anyone who meets the Carer's Allowance conditions, whether or not they actually claim Carer's Allowance. It is worth just over £200 a month and is added to your maximum amount. Claiming the carer element also removes the requirement to look for work.

If you receive both, Carer's Allowance is deducted from Universal Credit pound for pound, so the two together are worth about the same as Universal Credit with the carer element alone. Some carers are better off claiming only the carer element, because it avoids the Carer's Allowance earnings cliff edge. Run both options through a benefits calculator.

What to do next

  • Check the person you care for is on a qualifying benefit; if not, an Attendance Allowance or PIP claim comes first.
  • Claim Carer's Allowance even if the State Pension will cancel the payment.
  • If you cannot get Carer's Allowance, claim Carer's Credit to protect your pension.
  • Reassess the earnings limit every time your pay changes.
  • Scotland pays an additional Carer's Allowance Supplement twice a year; check mygov.scot.
How we checked this Figures in this guide were taken from DWP, HMRC and gov.uk and were correct on 26 September 2026. Spotted a change or an error? Tell us and we will review it.
About this guide. TaxHub explains how things work; it does not give personal financial advice and is not regulated by the FCA. Figures were correct when written but change often. Check gov.uk or the provider before you act, and get regulated advice for decisions about pensions, mortgages or investments.