Carer's Allowance Eligibility and the £204 Earnings Limit
Carer's Allowance has a hard earnings limit, and going over it by even a penny costs you the whole week's payment. Use the calculator below to work out your earnings as the DWP counts them, then check the rest of the eligibility rules. Getting this right is how you avoid the overpayments that have hit tens of thousands of carers.
- ✓You must care at least 35 hours a week for someone on a qualifying disability benefit.
- ✓Your earnings must be £204 a week or less (2026/27) after tax, NI and half your pension.
- ✓The limit is a cliff edge: £1 over and you lose the entire week's Carer's Allowance.
- ✓Some care costs you pay so you can work can be deducted before you reach the limit.
- ✓The Universal Credit carer element has no earnings limit and may suit you better.
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Who can claim Carer's Allowance?
You can claim if all of the following apply:
- ✓You are 16 or over and spend at least 35 hours a week caring for one person.
- ✓The person you care for gets a qualifying benefit (PIP daily living at either rate, DLA middle or highest care, Attendance Allowance, Pension Age Disability Payment, ADP daily living, CDP middle/highest care, AFIP or Constant Attendance Allowance).
- ✓You are not in full-time education or studying 21 hours a week or more.
- ✓Your earnings are £204 a week or less after allowable deductions (see the calculator below).
- ✓You have been in Great Britain for at least 2 of the last 3 years and normally live here.
The Claim Companion walks you through it step by step, works out the points you should score, and prepares your document ready to send.
Earnings limit calculator
Enter your weekly figures to see your earnings as the DWP counts them for Carer's Allowance, and whether you are under the £204 limit.
Pay from employment or self-employment. If you are paid monthly, divide by 4.33 for a weekly figure.
Half of what you pay into a pension is deducted from your earnings for this test.
Payments to someone who is not a close relative to care for the disabled person or your child while you work. Counts up to half your net earnings.
Estimate only, using the 2026/27 earnings limit of £204 a week. The limit is the same across England, Scotland (Carer Support Payment), Wales and Northern Ireland. This tool does not store anything you enter. For your exact position, check gov.uk/carers-allowance.
What counts as earnings
The £204 limit is on your net earnings, not your gross pay. You take your earnings from employment or self-employment and deduct:
- ✓Income tax and National Insurance.
- ✓Half of any contributions you make to a pension.
- ✓Equipment you need for work, and travel between workplaces your employer does not pay for.
- ✓Care costs, up to half your remaining net earnings, where you pay someone who is not a close relative to care for the disabled person or your child while you work.
Things like your State Pension, other benefits and money from savings do not count as earnings for this test.
The cliff edge, and how to avoid an overpayment
Carer's Allowance has no taper. If your earnings go over £204 in a week, you lose all of that week's payment, not just the amount you went over by. A single bonus, back pay or extra shift can tip you over without you noticing.
- ✓Check your payslips against the £204 net limit, including overtime, bonuses and back pay.
- ✓Report any change in your earnings or hours to the Carer's Allowance Unit and keep a note of when you did.
- ✓If your earnings vary, the limit is tested week by week, so plan shifts carefully around it.
- ✓Consider the Universal Credit carer element, which has no earnings cliff edge.
Get instant help right now
A Citizens Advice appointment can take weeks. Our free assistant is available 24/7 with no appointment, giving you clear, step-by-step answers about your exact situation, what to do next, and the deadlines that matter.
Need to take action? It can draft a ready-to-send formal letter for you (optional, from £4.99).
England, Scotland, Wales & Northern Ireland.
Frequently asked questions
What is the Carer's Allowance earnings limit for 2026/27?
£204 a week, after deducting income tax, National Insurance, half of any pension contributions, and certain work-related care costs. From 2026/27 the limit is set at 16 times the National Living Wage, so it will rise as the wage rises. It is a cliff edge: earning even £1 over in a week means you lose all of that week's Carer's Allowance.
Does my pension or other income count towards the limit?
No. The £204 limit only applies to earnings from employment or self-employment. Your State Pension, other benefits, and income from savings or investments are not counted as earnings for Carer's Allowance.
Can I deduct childcare or care costs from my earnings?
Yes, up to a point. If you pay someone who is not a close relative to care for the disabled person or your child so that you can work, you can deduct those costs, up to half of your net earnings, before comparing to the £204 limit.
What if I earn over the limit some weeks but not others?
The earnings limit is tested week by week, so you only lose Carer's Allowance for the weeks you go over. If your earnings fluctuate, report it to the Carer's Allowance Unit and keep records, this is how you avoid building up an overpayment.
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