What is the Carer's Allowance earnings limit for 2026/27?

Full answer

Carer's Allowance is a benefit for people who care for someone at least 35 hours a week. Unlike most benefits, it has a hard earnings cliff edge rather than a taper: in any week you earn more than the weekly net earnings limit, you lose the entire week's Carer's Allowance, not just a proportion. Earn at or below the limit and you keep the full amount. The earnings figure is net pay after allowable deductions. You can subtract Income Tax, your National Insurance contributions (Class 1 employee NI is 8% on earnings between GBP 12,570 and GBP 50,270 in 2026/27), and half of any pension contributions. Certain care costs -- for example paying someone other than a close relative to look after the disabled person or your children while you work -- can also be deducted, up to a capped share of earnings. These deductions can pull genuinely higher gross pay back under the limit. Who it affects: working carers near the threshold, especially those whose hours vary. Because the test is weekly, a single busy week of overtime can wipe out that week's allowance even if your average is below the cap. Pension contributions are a common lever -- salary sacrifice or personal pension payments reduce countable earnings. Worked mechanism: suppose the weekly limit is GBP X (set by DWP for 2026/27 -- confirm on gov.uk, this figure is not in our rate card so we will not state it). If your gross weekly pay is above X but, after tax, your share of NI, and half your pension contribution, your net falls to X or below, you still qualify. Use a take-home pay calculator to model your net weekly earnings after tax, NI and pension, then compare against the current DWP limit. Always verify the exact threshold on gov.uk, as it can change each April.

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