Carer's Allowance

Carer's Allowance is the main benefit for people who spend at least 35 hours per week caring for someone with a substantial disability. It is currently paid at up to £81.90 per week (approximately £4,260 per year). The person you care for must receive a qualifying disability benefit — this includes PIP daily living component (either rate), Attendance Allowance (either rate), or DLA middle or higher rate care component.

Carer's Allowance is not means-tested in the traditional sense, but there is an earnings limit. You can earn up to £151 per week after tax, National Insurance, pension contributions, and some childcare costs. This limit is based on net earnings, not gross pay. If you are self-employed, profits are assessed instead of earnings. You can also be in full-time education as long as it is 21 hours per week or fewer.

One of the most important aspects of Carer's Allowance is the concept of "underlying entitlement". If you receive a State Pension that is equal to or more than Carer's Allowance, you cannot be paid both — the State Pension takes priority. However, having an underlying entitlement to Carer's Allowance (meaning you meet all the eligibility criteria) can still unlock significant extra amounts in other benefits. For example, it can add a carer's premium of up to £45.60 per week to Pension Credit, or a carer element to Universal Credit.

Caring can be physically and emotionally demanding, and many carers are not aware of all the support available. Beyond Carer's Allowance itself, you may be entitled to National Insurance credits (protecting your State Pension), Council Tax discounts, and a carer's assessment from your local council which can identify practical support such as respite care, equipment, and home adaptations.