Freedom Isn’t Free UK Personal Finance
Benefits
Carer's Allowance 2026/27: Rate, Rules and the Trap
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 |