Carer's Allowance 2026/27: Rate, Rules and the Trap
Quick answer
Carer's Allowance is a benefit for people who care for someone at least 35 hours a week. It pays GBP 86.45 a week in 2026/27. You must earn no more than GBP 204 a week after deductions, and the cliff edge is brutal: earn GBP 1 over and you lose the whole payment, not just the excess.
Carer's Allowance at a glance (2026/27)
| Feature | Detail |
|---|---|
| Weekly rate | GBP 86.45 |
| Care requirement | At least 35 hours a week caring for one person |
| Who you care for | Someone getting a qualifying disability benefit, such as PIP daily living or Attendance Allowance |
| Earnings limit | GBP 204 a week after allowable deductions (from 6 April 2026) |
| The cliff edge | Earn GBP 1 over the limit and you lose 100% of the payment |
| Taxable? | Yes - it counts as taxable income |
| Overlap | It can clash with your State Pension and other benefits under the overlapping-benefits rule |
| Overpayment review | The DWP is reviewing 200,000+ historic overpayment cases from April 2026 |
Step by step
- 1
Check the caring test
You must care for one person for at least 35 hours a week, and they must get a qualifying disability benefit such as Attendance Allowance or the daily living part of PIP.
- 2
Check your earnings
Your earnings after allowable deductions (like pension contributions and some care costs) must be GBP 204 a week or less. This is the number that catches people out.
- 3
Check the knock-on effect first
Your claim can reduce the benefits of the person you care for (they may lose a severe disability premium), so work out the household position before you apply.
- 4
Apply
Claim on gov.uk. You can also get a National Insurance credit through it, which protects your State Pension.
- 5
Report changes immediately
Tell the Carer's Allowance Unit the moment your earnings or hours change. Not reporting is what creates the overpayments the DWP later claws back.
Carer's Allowance is the main benefit for unpaid carers, and at GBP 86.45 a week in 2026/27 it is a modest payment for 35 hours or more of care. It is not means-tested on savings, but it has one feature that has caused real harm: a hard earnings limit with no taper. Earn GBP 204 a week or less after deductions and you get the full amount; earn a single pound more and you lose all of it.
That cliff edge is the reason for the overpayment scandal now working its way through the system. Carers who nudged over the limit, often by a small pay rise or an extra shift they did not think to report, kept being paid and were later hit with demands for thousands of pounds. After an independent review, the DWP started reassessing more than 200,000 cases in April 2026, and some carers will have debts reduced, cancelled or refunded.
Two things protect you. Report any change in your earnings or hours the moment it happens, and check the effect on the person you care for before you claim, because your Carer's Allowance can strip a severe disability premium from their benefits and leave the household worse off overall. The upside is real too: the claim comes with a National Insurance credit that protects your State Pension. For the benefits around it, see our guides to Attendance Allowance, PIP rates and Help to Save. This is general information, not financial advice; benefit rules can change, so check gov.uk for your own situation.
Frequently asked questions
How much is Carer's Allowance in 2026?
Carer's Allowance is GBP 86.45 a week for 2026/27. It is paid to one carer per person cared for, it is taxable, and it can also give you a National Insurance credit that protects your State Pension.
What is the Carer's Allowance earnings limit?
For 2026/27 you can earn up to GBP 204 a week after allowable deductions and still claim. Deductions can include income tax, half of any pension contributions, and some care costs, so your gross pay can be a bit higher than GBP 204.
What happens if I go over the earnings limit?
You lose everything. There is no taper: earning even GBP 1 over the GBP 204 limit in a week means you lose the full GBP 86.45 for that period. This cliff edge is why so many carers have been landed with overpayment demands.
What is the Carer's Allowance overpayment scandal?
Thousands of carers were overpaid, often after small earnings breaches they did not realise mattered, then pursued for large debts. Following an independent review, the DWP began reassessing more than 200,000 cases in April 2026, and around 25,000 carers could have debts reduced, cancelled or refunded.
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General information, not financial advice. Tax rules and figures can change; check the current position on gov.uk before acting.