Answers · UK 2025/26
How much can I earn and still claim Carer's Allowance in 2026/27?
You can earn up to GBP 196 a week after allowable deductions and still get Carer's Allowance, worth about GBP 83.30 a week in 2026/27. Go even GBP 1 over the earnings limit and you lose the whole payment for that week, so it is a strict cliff edge, not a taper.
Full answer
Carer's Allowance is paid to people who care for someone at least 35 hours a week where the person being cared for receives a qualifying disability benefit. For 2026/27 it is worth roughly GBP 83.30 a week (about GBP 4,330 a year). To qualify you must not earn more than GBP 196 a week after deductions. The earnings figure is net of Income Tax, National Insurance, half of any pension contributions, and certain care costs you pay so you can work (for example paying someone other than a close relative to look after the disabled person or your own children while you work). Worked example: Priya earns GBP 230 a week gross. After GBP 10 tax and NI, GBP 8 into her pension (half of which, GBP 4, is deductible), and GBP 30 a week paying a childminder so she can do her caring job, her net earnings for the test are GBP 230 - 10 - 4 - 30 = GBP 186, under the GBP 196 limit, so she keeps Carer's Allowance. If a pay rise pushed her over GBP 196, she would lose the full GBP 83.30 for any week she earns too much, the well-known cliff edge that has caused overpayment problems. Carer's Allowance also gives Class 1 National Insurance credits, protecting your State Pension, and may overlap with Universal Credit, which can include a carer element. It counts as taxable income. Use the take-home pay calculator to work out your net weekly earnings. Check the earnings rules and claim at gov.uk/carers-allowance.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.