Answers · UK 2025/26

What is Carer's Credit and how does it differ from Carer's Allowance?

Carer's Credit is a National Insurance credit (not a cash payment) for carers providing at least 20 hours a week of care who do not qualify for, or need, Carer's Allowance -- it protects your State Pension record without the stricter 35-hour and earnings-limit tests that Carer's Allowance applies.

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Carer's Credit fills a gap for carers whose circumstances do not meet the stricter requirements of Carer's Allowance, but who would otherwise risk gaps in their National Insurance record from time spent caring instead of in paid work. **What Carer's Credit actually gives you** Unlike Carer's Allowance, which is a weekly cash payment, Carer's Credit provides Class 3 National Insurance credits, which count towards your qualifying years for the State Pension (and can also help protect entitlement to certain other contributory benefits) -- it pays no money directly but can be just as valuable long-term by preventing gaps in your NI record that would otherwise reduce your eventual State Pension. **Eligibility -- a lower bar than Carer's Allowance** To qualify for Carer's Credit, you generally need to be caring for someone for at least 20 hours a week (compared with the 35-hour threshold for Carer's Allowance) and the person you care for typically needs to be receiving a qualifying disability benefit, similar to the Carer's Allowance rules, though Carer's Credit also has a route for carers looking after someone who does not receive a qualifying benefit, via a Care Certificate signed by a health or social care professional confirming the level of care provided. **No earnings limit** Unlike Carer's Allowance, which has a strict weekly earnings limit that removes the ENTIRE benefit if breached even slightly, Carer's Credit has no earnings limit at all -- you can work as much as you like alongside claiming Carer's Credit, since it is not means-tested against your earnings in the same way. **Who typically uses Carer's Credit rather than Carer's Allowance** Carer's Credit is often used by carers who: care for fewer than 35 hours a week (so do not meet the Carer's Allowance hours threshold), earn above the Carer's Allowance earnings limit (so would lose Carer's Allowance entirely under its cliff-edge rule but can still protect their NI record via Carer's Credit), or are already receiving Child Benefit credits, another benefit that already protects their NI record, and simply need Carer's Credit to cover a specific caring period not otherwise covered. **You do not need to already be getting Carer's Allowance** Many carers do not realise Carer's Credit is a completely separate claim from Carer's Allowance -- some carers who are ineligible for, or have never applied for, Carer's Allowance are still eligible for Carer's Credit, and vice versa in some circumstances. It is worth checking eligibility for Carer's Credit even if you know you do not qualify for Carer's Allowance. **Worked example** James cares for his elderly father for around 25 hours a week (below the 35-hour Carer's Allowance threshold) while also working part-time earning above the Carer's Allowance earnings limit. He does not qualify for Carer's Allowance on either count, but successfully claims Carer's Credit, which adds National Insurance credits to his record for each week claimed, protecting his eventual State Pension entitlement despite reduced paid working hours and no Carer's Allowance income. **Practical tip** If you are caring for someone for a significant number of hours a week but do not think you qualify for Carer's Allowance (due to the hours or earnings tests), check your eligibility for Carer's Credit separately -- it is free to claim, has no impact on other benefits you receive, and can meaningfully protect your future State Pension.