Carer's Allowance and Universal Credit — Can You Get Both?

Carer’s Allowance and Universal Credit interact in a way that trips up a lot of people — you can claim both, but Carer’s Allowance counts as income against your Universal Credit, and there’s a separate “carer element” that can apply even if you’re not actually paid Carer’s Allowance itself. This guide untangles how the two benefits actually work together.

Yes, you can claim both

There’s no rule preventing you from claiming Carer’s Allowance and Universal Credit at the same time. In fact, many carers on a low income claim both, since neither one on its own may be enough to live on.

How Carer’s Allowance affects your Universal Credit award

Carer’s Allowance counts as income for Universal Credit purposes, and it’s deducted pound for pound from your Universal Credit award. So if you receive £86.45 a week in Carer’s Allowance (2026/27 rate), your Universal Credit award is reduced by roughly that same amount, once converted to a monthly figure.

This can make it feel like Carer’s Allowance “doesn’t add anything” when you’re also on Universal Credit — but this isn’t quite the full picture, because of the separate carer element described below.

The Universal Credit carer element

Alongside the income deduction, Universal Credit includes a carer element — an extra amount added to your Universal Credit award if you meet the caring criteria, broadly similar to the conditions for Carer’s Allowance (providing at least 35 hours of care a week for someone receiving a qualifying disability benefit).

Crucially, you can receive the Universal Credit carer element even if you’re not actually being paid Carer’s Allowance — for example, if Carer’s Allowance itself is not being paid because of an overlapping benefit rule (such as also receiving the State Pension), you can still have “underlying entitlement” to Carer’s Allowance, which is enough to trigger the Universal Credit carer element, even though no Carer’s Allowance cash payment reaches you.

This means the carer element and the Carer’s Allowance payment work somewhat independently — the Universal Credit carer element is about meeting the criteria for Carer’s Allowance, not necessarily about actually being paid it.

Working through an example

To make this concrete: if you provide 35+ hours of care for someone receiving PIP daily living, and claim both benefits:

• You may receive £86.45 a week in Carer’s Allowance
• Your Universal Credit award includes the carer element (worth a set additional monthly amount)
• Your Universal Credit award is then reduced, pound for pound, by the £86.45 a week Carer’s Allowance income

The net effect is that the carer element genuinely adds to your total household income, while the Carer’s Allowance payment itself is largely offset within Universal Credit — though your total income is still generally higher than claiming Universal Credit alone without any caring-related support.

Why claiming Carer’s Allowance can still be worth it, even with the deduction

Even though Carer’s Allowance is deducted pound for pound from Universal Credit, there can still be good reasons to claim it:

• National Insurance credits — Carer’s Allowance provides Class 1 National Insurance credits, which count towards your State Pension, whereas relying only on the Universal Credit carer element may not provide the same credit in every circumstance
• Passporting to other support — receiving Carer’s Allowance can sometimes open the door to additional support or premiums elsewhere, depending on your circumstances
• Protecting future entitlement — establishing a Carer’s Allowance claim (even one largely offset by Universal Credit) can matter later if your Universal Credit claim ends but your caring role continues

The severe disability premium interaction

If the person you care for receives certain disability premiums or additions (such as the severe disability addition in Pension Credit, or an equivalent premium), claiming Carer’s Allowance for them can sometimes reduce or stop that extra amount on their claim. This is worth checking carefully before claiming, since claiming Carer’s Allowance could leave the household worse off overall if it removes a larger premium from the person you’re caring for, rather than better off. It’s worth working through both sides of the calculation — your gain from the carer element, versus any loss to the other person’s award — before assuming claiming is automatically the better option.

How to claim both

• Claim Carer’s Allowance directly through GOV.UK or by post
• Report your caring role as part of your Universal Credit claim (or update your existing claim through your online journal) so the carer element can be applied
• Make sure any change in your caring circumstances — starting, stopping, or a change in hours — is reported to both DWP systems, since they don’t always update each other automatically

Common mistakes

• Assuming claiming Carer’s Allowance is pointless because of the Universal Credit deduction. The National Insurance credits and potential underlying entitlement benefits mean it’s often still worth claiming, even with the offset.
• Not checking the effect on the other person’s benefits. If the person you care for gets a disability premium linked to you not claiming Carer’s Allowance for them, claiming could reduce their award — always check both sides.
• Assuming the carer element requires Carer’s Allowance to actually be in payment. It doesn’t — underlying entitlement is often enough to trigger the Universal Credit carer element.
• Not reporting changes to both DWP systems. A change in your caring hours or the other person’s benefits needs to be reported for both Carer’s Allowance and Universal Credit, since updating one doesn’t automatically update the other.

Frequently asked questions

Does claiming Carer’s Allowance reduce my Universal Credit pound for pound? Yes — Carer’s Allowance counts as income for Universal Credit and is deducted from your award roughly pound for pound, once converted to a monthly amount.

Can I get the Universal Credit carer element without actually receiving Carer’s Allowance payments? Yes — if you have “underlying entitlement” to Carer’s Allowance (meeting the caring criteria, even if the cash payment itself isn’t made due to an overlapping benefit), you can still receive the Universal Credit carer element.

Is it ever not worth claiming Carer’s Allowance if I’m on Universal Credit? It’s always worth checking your specific circumstances first, particularly if the person you care for receives a disability premium that could be reduced or lost if you claim Carer’s Allowance for them.

Does Carer’s Allowance affect the person I care for, not just me? It can — if they receive a severe disability premium or similar addition linked to you not claiming Carer’s Allowance, your claim could reduce or remove that extra amount from their award.

Do I need to tell both DWP systems separately about a change in circumstances? Yes — Carer’s Allowance and Universal Credit are administered separately, so a change (such as your caring hours changing) generally needs to be reported to both.

What if I’m also getting the State Pension? Your State Pension and Carer’s Allowance are “overlapping benefits,” so you likely won’t receive Carer’s Allowance in cash if your pension is equal to or higher than the Carer’s Allowance rate — but you may still have underlying entitlement, which can support a Universal Credit carer element or Pension Credit carer premium.

Does claiming Carer’s Allowance protect my State Pension even if it’s not paid in cash? Yes — the National Insurance credits attached to a Carer’s Allowance claim (including underlying entitlement) can still count towards your State Pension, even when no cash payment is made.

Sources

• GOV.UK — Carer’s Allowance
• GOV.UK — Universal Credit