Carer's Allowance rates 2026/27

Carer's Allowance is £86.45 a week in 2026/27. You can earn up to £204.00 a week after tax, National Insurance and expenses and still get it: at the £12.71 National Living Wage that is 16 hours. A week over the limit pays nothing.

By James Burfield Rates from gov.uk, checked 11 October 2026 How this works

The tool assumes the same pay every week and tax code 1257L, with England, Wales or Northern Ireland tax bands. Self-employed earnings follow the same limit with business costs as the expenses.

How the earnings limit works

DWP tests your earnings after tax, National Insurance and expenses, according to gov.uk's eligibility rules. These come off your pay before the test:

• income tax and National Insurance
• half of your pension contributions
• equipment you need for the job, and travel between workplaces your employer does not pay for
• business costs, if you are self-employed
• paying someone to look after the person you care for, or your children, while you work, up to half of your earnings (the carer cannot be your partner or a close relative)

gov.uk's own example: earnings of £100 a week after tax, NI and other expenses, and £60 a week on care. £50 of the care counts, so your earnings for the test are £50.

The limit is a cliff edge. Earnings that count as £204.00 keep the full £86.45. A penny more and that week pays nothing, so one extra shift can cost more than it earns.

Why £204.00: 16 hours at the living wage

Since April 2025 the limit has matched 16 hours at the National Living Wage, rounded up to the next pound: 16 × £12.71 is £203.36, which rounds up to £204.00. The 2025/26 limit of £196 fits the same arithmetic on that year's £12.21. Before that the limit was much lower, £151.00 in 2024/25. In practice: on the living wage you can work 16 hours a week, pay no tax or NI, and keep the whole allowance.

Who can get Carer's Allowance

You need to be 16 or over and spend at least 35 hours a week caring for someone who gets a qualifying disability benefit: Attendance Allowance, the daily living part of PIP, or the middle or highest care rate of DLA, among others. You cannot be in full-time education or studying 21 hours a week or more, and your earnings must be within the limit. In Scotland you apply for Carer Support Payment instead. See Attendance Allowance, PIP and DLA rates.

Carer's Allowance and other benefits

State Pension. You cannot get both in full. A State Pension of £86.45 a week or more means no Carer's Allowance payment. Less than that, and Carer's Allowance tops you up to £86.45. If you get Pension Credit, that can go up instead.

Universal Credit. Your Universal Credit is reduced by the amount of Carer's Allowance you get, though you may get the extra carer amount in Universal Credit.

The person you care for. Their own benefits can change when you claim, for example a severe disability premium can stop. gov.uk's effect on other benefits page lists them.

Tax. Carer's Allowance is taxable. On its own it is under the Personal Allowance, but it is added to anything else you earn in the year.

Carer's Allowance 2023/24 to 2026/27

The weekly rate has gone from £76.75 in 2023/24 to £86.45 in 2026/27. The earnings limit has moved much more, from £139.00 to £204.00.

Each year links to the DWP rates paper it comes from. Download this table as CSV.

Each rise in the weekly rate matches the previous September's CPI inflation figure to within 5p. The earnings limit follows a different rule, so it is not in the 2027/28 forecast, which covers the weekly rate.

Questions

How much is Carer's Allowance in 2026/27?

£86.45 a week, which is £345.80 every four weeks and £4,495.40 a year. There is one rate. You can choose to be paid weekly in advance or every four weeks, and you get National Insurance credits for every week you receive it.

What is the Carer's Allowance earnings limit?

£204.00 a week in 2026/27, measured after tax, National Insurance and expenses. Half of your pension contributions, work equipment, travel between workplaces and some paid care costs all come off first. A week over the limit pays no Carer's Allowance at all.

How many hours can I work on Carer's Allowance?

The test is on earnings, so hours matter only through pay. At the £12.71 National Living Wage, 16 hours a week comes to £203.36, inside the £204.00 limit, and pays no tax or National Insurance. Pension contributions and allowable expenses give you a little more room.

Can I get Carer's Allowance and State Pension?

Only up to a point. If your State Pension is £86.45 a week or more, you get no Carer's Allowance payment. If it is less, Carer's Allowance tops you up to that amount. If you get Pension Credit, it can increase instead, so it is still worth claiming.

Does Carer's Allowance affect Universal Credit?

Yes. gov.uk says your Universal Credit is reduced by the amount of Carer's Allowance you get. You may still get the extra carer amount in Universal Credit. Overall, gov.uk says your total benefits will usually go up or stay the same when you claim.

Is Carer's Allowance taxable?

Yes. It counts as taxable income, so you pay tax on it if your total income is over the Personal Allowance. On its own, £4,495.40 a year is well under the allowance. It matters when you also have earnings or a pension in the same tax year.