Carer's Allowance Is Massively Underclaimed
An estimated £1.7 billion in Carer's Allowance goes unclaimed every year. There are approximately 6.5 million unpaid carers in the UK, yet only around 1.3 million claim Carer's Allowance. Many carers do not know they qualify, or incorrectly believe the earnings rules prevent them from claiming.
Carer's Allowance is a weekly payment of £81.90 (2025/26) for people who spend at least 35 hours per week caring for someone with a substantial caring need. It is not means-tested on your savings, but it is subject to an earnings threshold.
Carer's Allowance is a taxable benefit and counts as income for tax purposes. It also counts as income for means-tested benefits, but claiming it can unlock additional premiums and elements in those benefits that more than compensate.
Importantly, claiming Carer's Allowance does not affect the benefits of the person you care for in most cases — though there is an important exception relating to the Severe Disability Premium (see the common mistakes section below).
£81.90
Standard weekly rate
From April 2025
~£4,259
Annual total
52 weeks
£151
Earnings threshold (weekly)
Net earnings after deductions
£198.31/month
Carer's Element (UC)
If on Universal Credit
Many carers who think they earn too much actually qualify
You can earn up to £151 per week net and still receive Carer's Allowance. Crucially, this is your net earnings after allowable deductions — not your gross pay. The following deductions are allowed before the £151 threshold is applied:
Example: If you earn £200/week gross, pay £30 in tax and NI, and contribute £20 to a pension, your net earnings for Carer's Allowance purposes are £200 − £30 − £10 (half of pension) = £160. You are still over the threshold, but if you also have £15/week in allowable work expenses, your net earnings become £145 — and you qualify.
The overlapping benefits rule and what it means for you
If your State Pension is equal to or more than Carer's Allowance, you cannot receive both. However, you can still have an 'underlying entitlement' which may increase other benefits.
Claim Carer's Allowance anyway — the underlying entitlement can increase your Pension Credit or other means-tested benefits.
You cannot receive Carer's Allowance at the same time as contributory ESA or new-style JSA at the full rate due to the overlapping benefits rule.
Check which benefit gives you the higher amount. You may still qualify for an underlying entitlement.
You can receive Carer's Allowance and Universal Credit at the same time. UC includes a Carer Element (£198.31/month) if you are entitled to Carer's Allowance.
Claim both — the Carer Element in UC is in addition to Carer's Allowance.
If you care for 20+ hours per week but do not qualify for Carer's Allowance (e.g. you earn too much), you may qualify for Carer's Credit to protect your NI record.
Carer's Credit is free and protects your State Pension entitlement — always claim it if you cannot get Carer's Allowance.
The £151/week threshold is your NET earnings after all allowable deductions. Many carers who think they earn too much actually qualify once deductions are applied.
Even if you cannot receive the payment due to overlapping benefits, having an 'underlying entitlement' to Carer's Allowance can increase your means-tested benefits significantly.
You can take breaks of up to 4 weeks in any 26-week period and still receive Carer's Allowance. Notify DWP if your caring arrangements change.
If you receive Carer's Allowance and are on a means-tested benefit, you may be entitled to a Carer's Premium (legacy benefits) or Carer Addition (Pension Credit). Always check.
If the person you care for receives a Severe Disability Premium (SDP) in their own benefits, your Carer's Allowance claim may reduce their SDP. Seek advice before claiming.
Check the person you care for receives a qualifying benefit
Carer's Allowance can only be claimed if the person you care for receives PIP Daily Living, DLA middle/highest care, Attendance Allowance, or another qualifying benefit. Check their award letter.
Calculate your net earnings
If you work, calculate your net earnings after tax, NI, pension contributions, and allowable expenses. If the result is £151/week or less, you can claim.
Claim online or by phone
Apply online at GOV.UK or call 0800 731 0297. You will need your NI number, bank details, and details of the person you care for (including their NI number and benefit details).
Claim backdating
Carer's Allowance can be backdated by up to 3 months if you were eligible during that period. Always ask for backdating when you apply.
Check for additional entitlements
Once you receive Carer's Allowance, check whether you are entitled to the Carer Element in Universal Credit, Carer's Premium in legacy benefits, or Carer Addition in Pension Credit.