If you are caring for a loved one for at least 35 hours a week, you could be eligible for a benefit called Carer’s Allowance. This weekly payment is designed to provide financial support to individuals who dedicate their time to caring for someone with an illness or disability. But what exactly is Carer's Allowance, and are you eligible?

In this blog post, we'll walk you through everything you need to know about this vital benefit.

What is Carer’s Allowance and What is its Purpose?

Carer’s Allowance is a state benefit from the Department for Work and Pensions (DWP) that provides financial support to people who spend at least 35 hours a week caring for a loved one. Its purpose is to offer a small income while formally recognising the invaluable contribution of unpaid carers, who save the UK an estimated £184.3 billion annually. Unlike other forms of support, Carer's Allowance is a regular weekly payment of £83.30 (2025/26 rate). You don't have to be related to or live with the person you care for, but they must receive a qualifying disability benefit. You can only claim the allowance for one person, and if someone else also cares for that person, only one of you can claim it.

Am I Eligible for Carer’s Allowance?

To be eligible for Carer's Allowance, you must meet several key criteria. 

• You must be at least 16 years old. 

• You must provide a minimum of 35 hours of care per week for a single person. This is a strict requirement, and you cannot combine hours spent caring for multiple people to reach the total. 

• The person you care for must also be receiving a qualifying disability benefit, such as the daily living component of Personal Independence Payment (PIP), Disability Living Allowance (DLA) at the middle or highest care rate, or Attendance Allowance. 

• Your relationship to the person you care for is not a factor; you do not have to be a family member. 

• There is also an earnings limit, which is £196 per week after certain deductions like tax, National Insurance, and half of your pension contributions. 

• You also must meet specific UK residency and immigration requirements and not be in full-time education (which is defined as 21 hours or more of supervised study per week).

Is it Worth Applying for Carer’s Allowance?

While the weekly payment is a vital source of income, the value of Carer’s Allowance extends far beyond the money. For many, receiving the benefit is an important validation of their caring role. Additionally, claiming Carer’s Allowance can open doors to other financial support. It can provide National Insurance (NI) credits, protecting your future entitlement to a State Pension and other benefits if you are not in paid work. 

How Does Carer’s Allowance Affect My Finances and Other Benefits?

How Much Carer’s Allowance Will I Receive, and When?

• For the 2025/26 tax year, the weekly rate for Carer's Allowance is £83.30. This figure is reviewed annually, so it's worth checking the official government website for the most up-to-date rate. 

• Payments are typically made either weekly in advance or every four weeks directly into your bank account. It's important to be aware that Carer’s Allowance is a taxable benefit, but you will only need to pay tax if your total taxable income, including the allowance and any other earnings, exceeds your personal tax-free allowance. 

• If the person you care for is in hospital, your payments may continue for up to 12 weeks, as long as their qualifying benefit remains in payment. If you are travelling or moving abroad, special rules apply, so you must inform the DWP to find out how this will affect your entitlement.

• You will not receive more allowance if you care for more than one person.

How Does Carer’s Allowance Interact with My Other Benefits?

Your Benefits

Carer's Allowance can have a complex relationship with other benefits you receive.

You typically cannot the allowance if you are already getting a State Pension or other income-replacement benefits like contribution-based Employment and Support Allowance. However, it is still important to apply because you may be granted "underlying entitlement." This means that while you won't be paid Carer's Allowance directly, the DWP acknowledges your caring role. This can be crucial, as an underlying entitlement can increase the amount you receive from other means-tested benefits like Pension Credit or Housing Benefit.

Benefits of your cared-for person

Claiming Carer's Allowance won't reduce the disability benefits of the person you care for, like PIP or Attendance Allowance. However, it can affect their means-tested benefits. For example, they may lose their "severe disability premium." Because this could also impact their Housing Benefit or Council Tax Support, it's wise to get a benefits check before you apply. You can do this by contacting the Carers UK Helpline or using an online benefits calculator.

Can I Work While Claiming Carer’s Allowance? (Employment & Earnings)

What is the Earnings Limit, and How is it Calculated?

Carer's Allowance is not means-tested, but it does have a cap. 

• For the 2025/26 tax year, you must not earn more than £196 per week after certain deductions. This is often referred to as "permitted work." 

• To calculate your earnings, the DWP will deduct Income Tax, National Insurance, and half of any pension contributions you make. You can also deduct certain work-related expenses, such as the cost of special equipment, and a portion of any care costs you pay for the person you look after while you are working. 

• If your income fluctuates, the DWP will average your earnings over a period of time, such as five weeks or a "recognisable cycle" of work, to determine your weekly income. 

• If you are self-employed, your average weekly earnings are typically calculated from your most recent trading period, usually a year. It is essential to report any changes in your employment status or income to the DWP to avoid overpayments, which can be difficult to repay.

How Do I Apply for Carer’s Allowance and Manage My Claim?

What Advice is There on Applying for Carer’s Allowance?

How to Apply: You can apply for Carer's Allowance online through the official GOV.UK website. The online application is generally faster and guides you through the process, but you can also download a paper form (DS700) to complete and post.

Required Information: Before you start, have your and the person you care for’s National Insurance numbers, addresses, and dates of birth ready. If you're working, you'll also need details of your employment and a recent payslip.

Processing Time: After you submit your application, the DWP will send a decision letter. Processing times can vary, but typically range from a few weeks to a few months.

Appealing a Rejected Claim: If your application is rejected, you can challenge the decision. The first step is to ask the DWP for a "mandatory reconsideration" within one month of the date on your decision letter. If you are still unhappy with the outcome, you can then appeal to an independent tribunal.

Where to Get Help: Filling out the form can be daunting, but free, expert help is available. Organizations like Citizens Advice, Carers UK, and local carers' centres can provide guidance and support with your application.

How Do I Manage My Claim and Report Changes in Circumstances?

• Reporting Changes: You must inform the Carer's Allowance Unit of any changes in your situation or the situation of the person you care for. This includes changes to your work or income, if you stop providing at least 35 hours of care, or if the person you care for goes into hospital or a care home. Failing to report changes could lead to an overpayment that you'll have to pay back.

• Hospital Stays and Breaks: You can continue to receive the allowance for up to 12 weeks if you or the person you care for is in hospital, as long as the care recipient’s qualifying benefit continues. For other temporary breaks in care, your allowance can be paid for up to four weeks in any 26-week period.

• International Travel: You can claim Carer’s Allowance if you go abroad for up to four weeks in a 26-week period. If you are going abroad for a longer time, especially to an EEA country or Switzerland, you must inform the DWP to check if your entitlement will be affected.

• "Carer's Allowance Letter": The DWP will send you a letter to confirm your Carer's Allowance award. It's important to keep this letter as it can serve as proof of your caring role, which may be needed for other benefits or services.

• Regional Transitions: In Scotland, Carer's Allowance is being replaced by the new Carer Support Payment. If you are a Scottish resident already receiving Carer's Allowance, you will be automatically moved to the new payment system by spring 2025.

What Other Support Services are Available for Carers (Beyond Financial Aid)?

How Can I Find Holistic Support for My Well-being?

• Financial Support: Beyond Carer's Allowance, you may be able to access other forms of financial help, such as grants from charities like Family Fund, or local funds and schemes run by your local authority. These can provide money for essentials, breaks, or specific equipment.

• Local Authority Assessments: You have the right to a carer's assessment from your local council. This is a crucial step that helps them understand your needs and how caring impacts your life. The assessment isn't a test; it's a conversation to help you access services like respite care, practical help, or emotional support.

• Charitable Organisations: Major charities like Carers UK and Carers Trust are dedicated to providing comprehensive support. They offer helplines, online forums to connect with other carers, and campaign for better rights and recognition. Your local carers' centre can also provide tailored, local support.

• Emotional and Practical Resources: It's vital to look after your own mental and physical health. Many organisations offer support groups, helplines, and counselling services. There are also opportunities for training, from first aid to managing specific conditions, which can help you feel more confident in your caring role.

• Advocacy Services: If you have a dispute with a benefits decision or need help navigating the system, an advocate can help. Organisations like Citizens Advice can provide free advice and support to ensure your voice is heard.

Carefree Respite Breaks: A Vital Complement to Financial Support 

While Carers Allowance helps financially, true respite often means time away. That’s where Carefree comes in.