A Guide to Carer’s Allowance: Eligibility, Earnings Limit, and How to Apply
Carer’s Allowance is the main UK benefit designed to support people who spend a significant amount of time caring for someone with an illness or disability. It is a vital, non-means-tested benefit that can provide crucial financial relief. However, the rules—especially around earnings—are complex, leading many eligible carers to miss out or face costly overpayments.
Quick Facts (2025/26 Rates)
- Weekly Rate: £83.30
- Caring Requirement: At least 35 hours a week
- Earnings Limit: £196 per week (after deductions)
Do You Qualify? The 3 Core Tests
To receive Carer’s Allowance, you, the person you care for, and the type of care provided must meet all three of the following criteria:
35 Hours Per Week
You must spend at least 35 hours a week caring for that person. This includes practical help, supervision, and time spent keeping an eye on them.
The £196 Earnings Limit
You cannot earn more than £196 per week from employment or self-employment after eligible deductions are applied.
The Person You Care For
The person you care for must already receive a qualifying disability benefit, such as Attendance Allowance or the daily living component of PIP.
The Earnings Cliff-Edge and Allowable Deductions
If your weekly earnings (after deductions) go even a penny over the £196 limit, you lose your entire entitlement to the £83.30 benefit for that week. This is why precise income tracking is vital.
What Can Be Deducted From Your Earnings?
- Income Tax and National Insurance contributions.
- Half of any contributions you pay into a pension scheme.
- Certain work-related expenses (e.g., equipment or specialist clothing).
- The cost of paying for alternative care for the disabled person (up to half of your earnings) while you are working.
How to Apply and What Else You Could Get
You can apply online at GOV.UK or request a form (DS700 or DS700(SP) if over State Pension age).
Don’t Forget Carer’s Credit
If you are not eligible for Carer’s Allowance (perhaps because you are a full-time student or your State Pension is too high), you may still be eligible for Carer’s Credit. This is a National Insurance credit that protects your future State Pension entitlement.
Need Help Juggling Care and Work?
At Cardea Healthcare Northamptonshire, we provide flexible home care hours to help working family carers stay below the earnings limit. By covering your 35-hour minimum, we help you maintain your financial support and independence.