Carer's Allowance 2026/27: Eligibility, Rates, and How It Affects Other Benefits

What is Carer's Allowance?

Carer's Allowance (CA) is the main state benefit for unpaid carers in the UK. It is worth £81.90 per week in 2026/27 -- equivalent to £4,258.80 per year. It is paid directly to the carer, not to the person receiving care.

CA is a contributory-style benefit, but unusually you do not need to have paid National Insurance contributions to claim it. Instead, it is subject to an earnings limit and a caring hours test.

Claiming CA also counts as a qualifying week for National Insurance Class 1 credits, protecting your State Pension record for each week you claim.

Eligibility criteria

To qualify for Carer's Allowance in 2026/27 you must meet all of the following:

1. Caring hours: 35+ per week

You must spend at least 35 hours per week caring for a severely disabled person. This does not have to be a relative. The care you provide can include:

• Personal care (washing, dressing, administering medication).
• Accompanying to medical appointments.
• Emotional support and supervision.
• Domestic tasks undertaken because of the disability.

The 35 hours is an average -- a week where you provide 30 hours may be balanced by one where you provide 40.

2. The person you care for receives a qualifying disability benefit

The person must receive one of the following:

• Personal Independence Payment (PIP) -- daily living component at either rate (standard or enhanced).
• Disability Living Allowance (DLA) -- care component at the middle or highest rate.
• Attendance Allowance -- either rate.
• Constant Attendance Allowance at or above the normal maximum rate (paid with Industrial Injuries or War Pension).
• Armed Forces Independence Payment (AFIP).

The benefit must actually be in payment -- if it has been claimed but not yet awarded, CA cannot be paid until the qualifying benefit starts.

3. Net earnings below £151 per week

You can work while claiming CA, but your net weekly earnings must not exceed £151 (2026/27). Net earnings are calculated after deducting:

• Income tax and National Insurance.
• 50% of any pension contributions you make (employer and employee contributions combined).
• Certain approved work expenses (childcare costs, business mileage above AMAP rates, equipment costs).

For a nurse working part-time earning £160/week gross but contributing 10% to the NHS pension, the pension deduction would be £16/week, and income tax/NI might reduce the figure further -- potentially bringing net earnings below £151.

4. Other conditions

• Aged 16 or over.
• Not in full-time education (21+ hours per week).
• Resident in Great Britain (special rules apply in Northern Ireland).
• Not subject to immigration control.

How to apply

Apply online at gov.uk/carers-allowance or by phoning the Carer's Allowance Unit on 0800 731 0297. You will need:

• Your National Insurance number.
• Details of your earnings and any pension contributions.
• The name, address, date of birth and NI number of the person you care for.
• Details of the qualifying disability benefit they receive.

Claims can be backdated by up to three months if you met the conditions throughout that period.

The overlapping benefits rule

Carer's Allowance overlaps with several other contributory benefits. You cannot receive the full amount of both at the same time. The main overlapping benefits are:

• State Pension (any amount).
• Contributory Employment and Support Allowance (ESA).
• Contributory Jobseeker's Allowance (JSA).
• Incapacity Benefit, Maternity Allowance, Bereavement Support Payment.

If your State Pension (or other overlapping benefit) is equal to or greater than £81.90/week, you receive no cash payment of CA. If it is lower, you receive the difference (CA is "topped up" to £81.90).

"Underlying entitlement" -- why it still matters

Even if you receive nothing in cash from CA due to the overlap, you can have an underlying entitlement to Carer's Allowance. This is important because underlying entitlement triggers passporting benefits:

• Carer Addition in Pension Credit (£45.60/week) -- see below.
• Carer Premium in Housing Benefit and legacy means-tested benefits.
• Carer Element in Universal Credit (£198.31/month) -- see below.

For an older carer receiving the State Pension who would otherwise be blocked from CA, establishing underlying entitlement may unlock the Carer Addition, adding over £2,000/year in Pension Credit income.

Pension Credit and the Carer Addition

Pension Credit tops up the income of people over State Pension Age who have low income. It has two parts:

• Guarantee Credit: tops up weekly income to at least £218.15 (single) or £332.95 (couple) in 2026/27.
• Savings Credit: available to those who reached SPA before 6 April 2016.

If you are entitled to CA (including underlying entitlement), your Pension Credit award includes a Carer Addition of £45.60/week -- an extra £2,371/year. This is significant for retired carers who might otherwise be deterred from claiming.

To receive the Carer Addition, you must be receiving Pension Credit and be entitled to (not necessarily receiving) CA.

Universal Credit and the Carer Element

If you claim Universal Credit and you receive CA (or have underlying entitlement to it), your UC award includes a Carer Element of £198.31 per month (2026/27).

This is added to your standard UC allowance. It does not reduce the benefit cap, and it is in addition to any limited capability for work element if you also have a disability.

Note: if you live with your partner and both of you are carers for different people, you may each have a Carer Element added.

Council Tax Reduction

Most local councils in England offer a Council Tax Reduction (CTR) or Council Tax Support scheme. Carers often qualify for a full or partial reduction.

In addition, the disabled person being cared for may have a Council Tax disregard applied to them (meaning they are not counted for banding purposes). If they live alone, the standard 25% single-person discount applies. If they receive Severe Mental Impairment, they may be entirely disregarded.

Check with your local council -- CTR rules vary significantly.

Tax position

Carer's Allowance is taxable income. It is added to your other income when calculating your annual tax liability.

However, the Personal Allowance is £12,570 in 2026/27. If your total income from all sources (CA + wages + pension etc.) is below £12,570, you pay no income tax.

For a carer who:

• Receives CA: £4,258.80/year.
• Earns £7,000/year from part-time work.
• Total income: £11,258.80.

This is below the Personal Allowance -- no income tax is due.

For a carer with a State Pension of £12,547.60/year plus CA underlying entitlement (not actually receiving CA cash), only the pension is taxable, and even that may be below or just above the Personal Allowance.

Carer's Credit: for those who don't qualify for CA

If you provide care for 20 or more hours per week but do not meet all the CA conditions (for example, your earnings are above £151/week, or you care for fewer than 35 hours), you may qualify for Carer's Credit.

Carer's Credit is a National Insurance credit -- it counts towards your State Pension qualifying years without any cash payment. It is particularly valuable for people taking time out of work to care, who might otherwise have gaps in their NI record.

To qualify, the person you care for must receive a qualifying disability benefit (same list as CA), or you must have a Certificate of Entitlement from a health or social care professional.

Summary: what to claim and when

Sources

• gov.uk: Carer's Allowance
• gov.uk: Carer's Credit
• DWP: Carer's Allowance: rates and eligibility
• gov.uk: Pension Credit
• gov.uk: Universal Credit