Carer's Allowance: What It Is, Who Qualifies, and How to Claim

Topic cluster: Benefits & Financial Support | Reading time: 6 min

If you are providing substantial care for a parent, you may be entitled to Carer's Allowance — the main state benefit for unpaid carers. Yet it remains widely unclaimed: many carers don't know it exists, assume they won't qualify, or find the eligibility rules confusing. This guide sets out who can claim, how much you'll receive, and the important interactions with other benefits to be aware of.

What Is Carer's Allowance?

Carer's Allowance is a benefit for people who provide at least 35 hours of care per week to someone who receives a qualifying disability benefit. It recognises the economic contribution of unpaid carers — but it is not generous.

Rate 2025/26: £81.90 per week (£4,258.80 per year)
It is taxable income
It counts as a National Insurance credit (protecting State Pension entitlement)

Who Can Claim Carer's Allowance?

You can claim if:

You are aged 16 or over
You spend at least 35 hours per week caring for someone
You earn no more than £196 per week net (after allowable deductions) — this is the earnings threshold in 2025/26
You are not in full-time education
You are ordinarily resident in the UK

The person you care for must receive one of:

Attendance Allowance (either rate)
Personal Independence Payment (Daily Living component — either rate)
Disability Living Allowance (middle or highest care rate)
Armed Forces Independence Payment
Constant Attendance Allowance (at or above the normal maximum rate)

The Earnings Limit Explained

The earnings limit (£196/week net in 2025/26) is calculated after deductions for:

Income tax
National Insurance contributions
Pension contributions (occupational or personal)
50% of childcare costs

This means if you work part-time and earn slightly over £196 gross, deductions may bring your net earnings below the threshold. It is worth calculating carefully.

If you earn above the limit in any given week, you are not entitled to Carer's Allowance that week.

The "Underlying Entitlement" Trap

This is one of the most misunderstood aspects of Carer's Allowance.

Many carers, particularly those over State Pension age, find they cannot be paid Carer's Allowance because they receive State Pension. Under the overlapping benefits rules, Carer's Allowance cannot normally be paid alongside State Pension if the State Pension is equal to or higher than Carer's Allowance.

However — and this is important — having underlying entitlement to Carer's Allowance (even if it can't be paid) can increase the carer premium or additional amounts in other means-tested benefits. Always declare underlying entitlement when applying for Pension Credit or Universal Credit.

Carer's Premium and Pension Credit

If you receive means-tested benefits, being a carer can increase the amounts you receive:

Pension Credit includes a Carer Addition of £45.60/week (2025/26) if you have underlying entitlement to Carer's Allowance
Universal Credit includes a Carer Element worth £198.31/month (2025/26) if you qualify as a carer

These amounts can significantly exceed Carer's Allowance itself. It is worth checking entitlement to Pension Credit and Universal Credit even if Carer's Allowance can't be paid.

How to Claim Carer's Allowance

Online: gov.uk/carers-allowance/how-to-claim
By post: Download and complete claim form DS700 from gov.uk
By phone: 0800 731 0297

You will need:

Your National Insurance number
Details of your earnings (payslips or bank statements)
The name and address of the person you care for
Details of the qualifying benefit they receive

Claims can be backdated by up to 3 months.

What Happens to the Person You Care For

When you claim Carer's Allowance, the DWP notifies the benefit office managing the cared-for person's benefits. This can trigger a reduction in the severe disability premium or enhanced disability element added to their means-tested benefits — if they currently receive one.

This is known as the "Carer's Allowance trap." In some situations, claiming Carer's Allowance reduces the cared-for person's benefits by the same or more than the Carer's Allowance gained.

Always check this before claiming. A benefits adviser at Citizens Advice or a carer centre can calculate the household impact.

Checklist Before Claiming

☐ Confirm the person I care for receives a qualifying benefit
☐ Check my weekly earnings are (or can be reduced to) below £196 net
☐ Calculate whether claiming will reduce the cared-for person's benefits
☐ Check whether underlying entitlement increases my Pension Credit or Universal Credit
☐ Gather NI number, payslips, benefit details for the person I care for

Carer's Allowance and Your Own Wellbeing

Carer's Allowance is also a signal to access wider carer support:

Request a Carer's Assessment from the local authority — entitles you to support in your own right
Contact Carers UK (0808 808 7777) for advice and local connections
Ask your GP to add "carer" to your patient record — this can unlock priority flu jabs and other support

Supporting your parent through care? homeformum.com helps families at every stage — from care at home to finding the right care home and understanding all available funding.