Carer's Allowance Earnings Threshold Rises to £151 per Week

The Carer's Allowance earnings threshold has increased to £151 per week net from April 2025, meaning more working carers can now qualify for the benefit.

Carer's Allowance Earnings Threshold — April 2025

From April 2025, the net earnings threshold for Carer's Allowance has increased to £151 per week — up from £139 per week in 2024/25.

What This Means

You can now earn up to £151 per week net (after tax, National Insurance, pension contributions, and allowable expenses) and still receive Carer's Allowance.

This increase means that many carers who were previously just over the threshold may now qualify.

How to Calculate Your Net Earnings

To check whether you are under the threshold, deduct the following from your gross weekly earnings:

Income Tax
National Insurance contributions
Half of any pension contributions
Allowable work expenses (e.g. travel costs, professional subscriptions)
Up to 50% of childcare costs if you pay for childcare while you care

If the result is £151 or less, you qualify for Carer's Allowance.

Example Calculation

If you earn £200/week gross, pay £25 in tax and NI, contribute £20 to a pension, and have £10 in work expenses:

£200 − £25 (tax/NI) − £10 (half of pension) − £10 (expenses) = £155

Still slightly over — but if you have any additional allowable expenses, you may qualify.

Claim Backdating

If you have become newly eligible due to this threshold increase, you can claim Carer's Allowance and request backdating of up to 3 months.

Read the Full Guide

For full details on Carer's Allowance eligibility, the overlapping benefits rule, and how to claim, read our Carer's Allowance guide [blocked].