Carer’s Allowance 2025: Eligibility, rates, overpayments

Key insights

Carer’s Allowance – pays £83.30 a week to people caring 35+ hours for someone on a qualifying disability benefit.

Eligibility – You must be 16+, not in full-time education, and earn under £196 a week (from April 2025).

Carer Support Payment – this is replacing Carer’s Allowance in Scotland.

Overpayments – On 25 November 2025, the DWP said it will review Carer’s Allowance overpayments caused by unclear guidance and may reduce, cancel or refund many of the debts that have taken place since 2015.

What is Carer’s Allowance?

Carer’s Allowance is paid to people who spend at least 35 hours a week caring for someone who is claiming certain benefits.

To be eligible, you must be 16 or over and not in full-time education.

How much is Carer’s Allowance?

In 2025/26, Carer’s Allowance is £83.30 a week, which is £333.20 a month.

Carer’s Allowance is £4,331.60 a year.

There is a cap on how much you can earn from work and still be eligible.

You have to pay tax on Carer’s Allowance if your combined income is over the Personal Allowance of £12,570. This is after deductions for tax, National Insurance and other allowable expenses have been made.

On its own, Carer’s Allowance is below the threshold for paying tax.

How much can I earn and claim Carer’s Allowance?

Chancellor Rachel Reeves announced in the Budget that the earnings threshold for unpaid carers will rise by £45 a week.

So unpaid carers who care for someone for at least 35 hours a week are able to earn up to £196 a week from April 2025 and still claim Carer’s Allowance.

It is estimated that 60,000 more carers are now eligible for the benefit.

Am I eligible for Carer’s Allowance?

To qualify for Carer’s Allowance, you need to care for someone at least 35 hours a week. This means they would not be able to carry out everyday tasks without your help and support. The type of help you provide can include support with washing and preparing meals, taking the person you care for to a doctor’s appointment and helping with things like bills and shopping.

To qualify for Carer’s Allowance you must:

• Spend at least 35 hours a week caring for someone. You do not need to live with them or be related.
• The person you care for receives a qualifying disability benefit
• Be at least 16 years old
• Not earn more than £196 per week after tax, national insurance and 50 per cent of what you pay into your pension
• Have been living in England, Scotland, Wales or Northern Ireland for a minimum of two of the last three years
• Normally live in England, Scotland, Wales or Northern Ireland. Or live overseas as a member of the armed forces, or living in or moving to another EEA country or Switzerland
• Not be in full-time education or studying 21 hours per week or more
• Not be subject to immigration control

The person you care for must be receiving one of these benefits

• Personal Independence Payment (PIP) – daily living component
• Disability Living Allowance – the middle or highest rate of the care component
• Attendance Allowance
• Adult Disability Payment – daily living component
• Child Disability Payment – middle or highest care rate
• Constant Attendance Allowance at or above the maximum rate with Industrial Injuries Disablement Benefit
• Constant Attendance Allowance at the basic rate with a War Disablement Pension
• Armed Forces Independence Payment

Carer’s Allowance overpayment review

The Department for Work and Pensions (DWP) announced on 25 November 2025 that unpaid carers who were overpaid Carer’s Allowance because of unclear government guidance will have their cases reviewed. Many may have their debts reduced, cancelled or refunded.

All earnings-related overpayment cases from 2015 to summer 2025 will be reassessed.

This follows the independent Sayce Review, which found that confusing rules about fluctuating earnings meant carers often didn’t understand what income changes they needed to report.

As a result, many carers unknowingly went over the weekly earnings limit and built up debt. Some racked up as much as £20,000 of debt.

Carers were ‘let down’ by unclear rules

The government has accepted that carers were “let down” by these unclear rules. It says it is now fixing the problem as part of its Plan for Change.

If new calculations show the original overpayment amount was too high, carers will have their debts reduced or wiped. Refunds will be given where money has already been repaid.

Work and Pensions Secretary Pat McFadden said carers play a vital role and that the government has a duty to put things right after inheriting a flawed system.

Total of 143,922 carers have been affected by overpayment debts

Helen Walker, Chief Executive of Carers UK called it a “landmark day”. She said: “We have raised this scandal of overpayments since 2018, repeatedly highlighting a catalogue of issues faced by carers which caused huge emotional and financial distress and immense hardship for some.”

Can you get Carer’s Allowance if you receive State Pension?

Once you reach State Pension age, which is currently 66, you can begin to receive the State Pension. When you start receiving the State Pension, you can no longer get Carer’s Allowance.

This is because they are overlapping benefits. This means you qualify for both at the same time but can only get one.

However if you are otherwise eligible for Carer’s Allowance, it will give you an ‘underlying entitlement’. This entitlement may mean you get extra money with any means-tested benefits you claim, such as Pension Credit and Housing Benefit.

If you are under State Pension age, you will also get National Insurance credits each week towards your pension.

If you receive Pension Credit you may be able to get an increase in payments if you qualify for Carer’s Allowance.

What is the Carer Premium / Carer Element?

Other benefits that count as overlapping benefits meaning you can no longer get Carer’s Allowance but you can get an ‘underlying entitlement’ are:

• Contributory Employment and Support Allowance
• Incapacity Benefit
• Maternity Allowance
• Bereavement or Widow’s Benefits
• Severe Disablement Allowance
• Universal Credit

This ‘underlying entitlement is also known as the Carer Premium or Carer Element.

Sixty per cent of carers on low incomes who are of working age and on Carer’s Allowance claim an income-related means-tested benefit, according to the Department for Work and Pensions (DWP)

Can you claim Carer’s Allowance for more than one person?

You are only allowed to claim this benefit for one person. If you are care for more than one person you will not be paid any extra money.

If you do care for more than one person, you are not allowed to tot up the hours you spend time caring for both of them to make up the 35 hours.

Do you have to live with the person you care for to claim Carer’s Allowance?

The person you are caring for can be a relative, a friend or a neighbour. You do not have to live with them to claim Carer’s Allowance.

But you must be caring for them at least 35 hours a week.

What happens if the person you are caring for dies?

If the person you are caring for dies, you can continue to get Carer’s Allowance for up to eight weeks.

It can be hard enough coping emotionally when someone close to you dies, but there are many admin tasks after someone dies that can be overwhelming both mentally and practically.

If you are living in England, Scotland or Wales, you can use the Tell Us Once service. This enables you to inform a whole host of government organisations in one go about the death of a person.

How do you claim Carer’s Allowance

If you feel that you meet all the requirements listed above, you may be entitled to Carer’s Allowance.

The claim can be backdated up to three months as long as you meet the requirements.

Before you make a claim, make sure you have the below on hand (if applicable).

Your details:

• Your National Insurance Number (and your partner’s)
• Bank or building society details
• If you are working: Employments details and your latest payslip
• Your P45 if you have recently finished work
• Details of the course you are studying
• Details of any expenses, such as pension contributions.

Details of the person you care for:

• Date of birth
• Their address
• National Insurance number if they are aged 16 or over
• Disability Living Allowance if they are under 16

To apply for the benefit if you are in England and Wales, visit the UK government’s website. Or you can call 0800 731 0297 for a claim pack.

If you are in Northern Ireland, apply online here or call 800 587 0912.

Carer Support Payment is replacing Carer’s Allowance in Scotland

Carer’s Allowance is being replaced in Scotland by Carer Support Payment.

Social Security Scotland pay Carer Support Payment which is being rolled out across Scotland in phases. The process of transferring carers over to receiving the Carer Support Payment began in February 2024.

If you are in Scotland and you get Carer’s Allowance or Carer Support Payment, you may be able to get Carer’s Allowance Supplement. This is a lump sum of £293.50 you can get twice a year.