Guide to Carer’s Allowance in the UK

Introduction to Carer’s Allowance

To qualify for Carer’s Allowance you must do at least 35 caring hours a week.

Carer’s Allowance eligibility involves lots of duties. You will be washing, dressing, cooking and supervising. The person cared for needs to receive certain benefits.

The Carer’s Allowance amount is taxable. If you’re receiving means-tested benefits, this counts as income. This includes Income Support and Housing Benefit.

Carer’s Allowance hit the headlines in 2024. MPs were critical of the way the Department for Work and Pensions (DWP) tried to claw back grants it overpaid. Keep an eye out to make sure you’re not overpaid.

What is Carer’s Allowance?

Carer’s Allowance is a benefit for caring for one person for 35 hours or more a week. You must earn less than £151 a week after tax to get it.

Why it's important

Carer’s Allowance is important because if you care for someone, you might earn less or pay out more in expenses. You might not pay National Insurance (NI) contributions, which count towards your pension.

Carer’s Allowance is a benefit for a carer to spend on anything they like – there’s total freedom with it.

Eligibility criteria

You could be eligible for Carer’s Allowance as a friend, relative or someone in the health and social care sector. There’s no upper age limit but you must be 16 or older.

You can qualify if you earn up to £151 per week. This is after paying taxes, National Insurance and expenses.

Who qualifies for Carer’s Allowance?

You may qualify for Carer’s Allowance if the person you care for gets one of these benefits:

• The daily living component of Personal Independence Payment
• The middle or highest care rate of Disability Living Allowance
• Attendance Allowance
• Industrial Injuries Disablement Benefit with the Constant Attendance Allowance at or above the normal maximum
• A War Disablement Pension with the Constant Attendance Allowance at the basic (full day) rate
• Armed Forces Independence Payment
• The middle or highest care rate of Child Disability Payment
• The daily living component of Adult Disability Payment at the standard or enhanced rate

Some benefits can overlap – so when you apply for Carer’s Allowance, give lots of detail. Carer’s Allowance eligibility is based on need.

Conditions for eligibility

There’s a range of conditions – check before applying for Carer’s Allowance.

You can claim if:

• You’re over 16 years old
• You spend at least 35 hours a week caring for someone
• After deducting tax and NI contributions, your weekly earnings are below £151
• You’re not in full-time education
• You’re not studying for 21 hours a week or more
• You have no immigration control issues
• You’ve lived in England, Scotland or Wales for at least two of the past three years
• You’re 16 or over

If you live in Dundee City, Perth and Kinross or the Western Isles, you need to apply for Carer Support payment instead.

How to apply for Carer’s Allowance

You apply for Carer’s Allowance online. If you prefer to apply by post, call the Carer’s Allowance Unit.

• Telephone: 0800 731 0297 Monday to Friday, 8am to 6pm.
• Textphone: 0800 731 5312.

Required documents

• National Insurance (NI) number
• Partner's NI number if you have a partner
• Bank or building society details (unless you get State Pension)
• Employment details, if working, and your latest payslip
• P45 if you’ve recently left work
• Course details if you’re a student
• Expenses, such as pension contributions or the cost of caring for your children or the disabled person while you’re at work

You also need these details about the person you care for:

• Date of birth and address
• National Insurance number if 16 or over
• Disability Living Allowance reference if under 16

Keep a copy of documents you send – or take photographs of them on your phone.

Application process

You may need to post supporting documents to determine Carer’s Allowance eligibility.

Claiming by post?

You need to send in:

• A DS700 application form. You can fill it in by pen, on a computer or mobile device
• Call 0800 731 0297 to have the form posted to you.
• If you claim a State Pension you need to fill in a different form, called DS700SP.

Claiming online?

You need:

• Your National Insurance number
• Bank or building society details
• Employment information

Remember, it’s always quicker to claim online.

Appealing a decision

if you’re refused Carer’s Allowance, you have one month to appeal.

What to consider:

• The government calls the appeal process ‘mandatory reconsideration’
• When you’re notified, some decisions go straight to appeal, but others won’t
• The letter sent to you will set out the appeal process
• You can appeal on many grounds, such as factual error, bereavement or bad health

Carer’s Allowance amount

The Carer’s Allowance amount you get will rise every April in line with inflation. It uses the Consumer Prices Index (CPI) from the previous September.

You may pay tax on Carer’s Allowance if your total income exceeds the tax threshold. Income includes pensions or part-time earnings. Bear in mind your tax-free allowance (2024) is £12,570.

On its own, the Carer’s Allowance is below the tax threshold. When calculating means-tested benefits this grant counts as income.

How much can you receive?

You can receive £81.90 a week. Carer’s Allowance rose from £76.75 for 2023/24 to £81.90 in 2024/25. As a carer you get the full amount, or nothing if you earn more than £151 a week. Carer’s Allowance does not have a taper relief system that cuts your payment a little at a time. It just stops.

Payment schedule

The payment schedule for Carer’s Allowance is weekly or monthly in advance. You need to supply your bank, building society or credit union details.

If there are problems, tell the office that pays your benefit.

Overpayment

Full-time carers can still be overpaid if they earn even £1 more than £151 a week.

Understand your Carer’s Allowance overpayment risk. Usually, overpayments stem from:

• Mistakes made by a claimant
• System faults
• Errors by officials

To avoid legal issues and stress, tell the DWP about any changes quickly. MPs have said DWP overpayments caused carers to run up “unmanageable levels of debt”.

Impact on other benefits

Carer’s Allowance can affect other benefits. Usually, it means your total benefits will either rise or stay the same. You can use a free and private benefits calculator.

Let’s look at what claiming Carer’s Allowance means for the carer – and the person being cared for.

For the carer

For the person being cared for

Remember, you can chat about your options with a local support group. Consider Carers UK or Citizens Advice. The MoneyHelper website has help too.

Managing your benefits

If you’re claiming Carer’s Allowance, managing it well is key.

Let the benefits office know if:

• Your weekly earnings exceed £151 (2024 level)
• You stop being a carer
• You provide less than 35 hours of care a week
• You go on holiday and have care cover while you’re away
• You get a new job

The bottom line is to keep in contact with the Benefit Office as your life changes.

The Carer’s Allowance Unit can help you.

• Telephone: 0800 731 0297
• Textphone: 0800 731 0317

Tips for carers

1. If you earn close to the £151 cut-off, keep an eye on any overtime – it can add up quickly.
2. Be clear with the DWP. Report any changes as soon as earnings go up or down.
3. Keep a record of your caregiving so you know how much you’re doing.
4. Join an online or local support group that gives advice and connects you with other carers.
5. Carer’s Allowance may change in a new government – so keep up to date.

Frequently asked questions

Can I claim Carer’s Allowance if I'm retired?

Yes, you can claim Carer’s Allowance if you’re retired and meet the criteria. But your State Pension still counts towards the earnings limit.

Can I receive Carer’s Allowance for caring for more than one person?

No, you only get one payment, even if you care for several people. It’s up to you to choose the person you claim for.

How do I report changes in my circumstances while claiming Carer’s Allowance?

• Contact the Carer’s Allowance unit
• Telephone: 0800 731 0297
• Textphone: 0800 731 0317
• Online

How much is the Carer’s Allowance earning limit?

The Carer’s Allowance earnings limit for the 2024/25 tax year is £151 per week. This means you can’t earn more than £151 a week on average from:

• Employment, after PAYE deductions
• Self-employment after expenses, taxes and NI contributions

This earnings limit changes each year. Always check the latest figure when applying for Carer’s Allowance.

How does Carer’s Allowance affect my benefits?

Carer’s Allowance can affect some benefits. Take Universal Credit, for example. If you’re entitled to Carer’s Allowance, you may be able to receive a Carer Premium (called the ‘carer element’ or ‘carer addition’). You would be eligible for this payment even if you do not receive Carer’s Allowance.

Carer’s Allowance counts as income when working out your Universal Credit.

Disability benefits are another area. Payments may stop if the person you care for gets:

• Severe disability premium
• The extra amount for severe disability within their income-related Employment and Support Allowance

You can report and manage changes to your benefits online.

How will my pension affect the Carer’s Allowance?

If your weekly pension exceeds £81.90, you're not eligible for Carer’s Allowance. If it's less, Carer’s Allowance fills the gap.

Always be cautious when claiming as it may affect any other benefits you claim.

Can I get Carer’s Allowance and have a break from caring?

Yes, in any 26-week period you can take up to four weeks’ break from caring for any reason. This covers holidays abroad.

If the person you care for has been in hospital this may be shorter – check with the Carer’s Allowance Unit.

What happens if the person I care for goes into hospital?

You lose Carer’s Allowance if the person you care for stays in an NHS hospital for more than four weeks.

Carer’s Allowance continues if the person enters a non-NHS hospice. You must tell the DWP and still provide 35-plus hours of care a week.

If it’s respite care, seek advice via the Carer’s Allowance Unit just to be on the safe side.

What happens if the person I care for dies?

Carer’s Allowance will stop eight weeks after the death of the cared-for person. The DWP will contact you to confirm the death and end Carer’s Allowance eligibility.

If you care for someone else who qualifies, you must let the DWP know to keep receiving Carer’s Allowance.

You may find yourself eligible for other benefits such as:

• Bereavement Support Payment
• Funeral Expenses Payment

Summary

Carer’s Allowance may help many unpaid carers. Family members who look after their loved ones do great work. They take pressure off the NHS and help their families live independently for longer.

A 2023 study by Carers UK and the University of Sheffield said carers save the UK economy £445m a day – or £162bn a year.

But overpaid Carer’s Allowance has caused some people to run up huge debts without them knowing. Take care not to fall foul of the rules. Do inform your Benefits Office of any change in your eligibility. It can be easy to overstep the £151 weekly earnings limit.