Can I Claim Carer's Allowance If I Work?

Many carers assume that having a job rules out Carer’s Allowance entirely, but that’s not the case — you can work and still claim, as long as your earnings stay under a specific weekly limit. This guide explains exactly how the earnings limit works, what counts towards it, and what happens if you go over.

The basics

Carer’s Allowance pays £86.45 a week (2026/27 rate) if you provide at least 35 hours of care a week to someone who receives a qualifying disability benefit, such as the daily living component of PIP, Attendance Allowance, or the middle or highest rate of the care component of DLA.

You can work while claiming Carer’s Allowance, but your net earnings must not exceed £204 a week (2026/27 threshold). This is a hard cliff edge, not a taper — earning even a small amount over the limit in a given week means you lose the entire week’s Carer’s Allowance payment, not just a portion of it.

What counts as “net earnings”

The £204 limit isn’t based on your gross pay — it’s based on what’s left after certain deductions:

• Income Tax
• National Insurance contributions
• Half of any pension contributions you make
• Certain approved work expenses, such as the cost of care for a child or the person you’re caring for, while you’re at work

This means your take-home pay can sometimes be higher than £204 while your “net earnings” for Carer’s Allowance purposes are still under the limit, once these deductions are applied. It’s worth calculating this carefully rather than just looking at your payslip’s take-home figure.

The 35-hour care requirement

Alongside the earnings limit, you also need to be providing at least 35 hours of care a week to qualify at all. This can include:

• Personal care — helping with washing, dressing, eating, or mobility
• Supervision to keep the person safe
• Practical tasks directly related to their care, such as managing medication or attending appointments with them
• Emotional support, where this forms part of the overall care provided

The 35 hours doesn’t need to be spread evenly across the week, and you don’t need to live with the person you care for.

Why the cliff edge causes problems

Because there’s no gradual taper — you either qualify for the full amount or you get nothing for that week — carers on or near the earnings limit can end up with overpayments if their pay fluctuates even slightly. This has been a widely reported issue, particularly for people paid monthly, since the DWP assesses earnings on a weekly basis, meaning a single higher-paid week (perhaps due to overtime, a bonus, or how a monthly salary happens to divide across weeks) can put you over the limit for that specific week, even if your average earnings across the month or year are comfortably below it.

If your pay fluctuates, it’s worth keeping a close eye on your weekly net earnings, since a small pay rise, a single overtime shift, or an annual bonus could unexpectedly tip you over the limit and create an overpayment you’ll need to repay.

What to do if you go over the limit

If you know in advance that you’ll go over the earnings limit in a particular week, tell the Carer’s Allowance Unit as soon as possible — you may lose that week’s payment, but reporting it promptly avoids a larger overpayment building up if you don’t correct it until later. If you’ve already been overpaid because your earnings crept over the limit without you realising, contact the Carer’s Allowance Unit directly to sort this out; the longer an overpayment continues, the larger the amount you’ll eventually need to repay.

Self-employed carers

If you’re self-employed, your earnings are assessed based on your profit after allowable business expenses, not your total turnover, assessed in the period the profit is received. This can make the calculation more complex than for employees, and it’s worth keeping clear records of your income and expenses if you’re claiming Carer’s Allowance alongside self-employment.

How working affects your other benefits

Claiming Carer’s Allowance alongside work can also affect other benefits you receive:

• Universal Credit — Carer’s Allowance counts as income and is deducted from your Universal Credit award pound for pound, though you’ll also receive the Universal Credit carer element regardless of whether Carer’s Allowance is actually paid to you (see our guide on Carer’s Allowance and Universal Credit for more detail)
• Pension Credit — if you receive Pension Credit, a carer premium may apply, which can be more valuable than the Carer’s Allowance payment itself in some cases

Common mistakes

• Only checking gross pay, not net earnings. The £204 limit is based on net earnings after specific deductions, not your headline salary or take-home pay figure.
• Not accounting for pay fluctuations. Because assessment is weekly, an occasional higher-paid week can tip you over the limit even if your average pay is well under it.
• Not reporting a change promptly. Overpayments tend to grow the longer they go unreported — telling the Carer’s Allowance Unit as soon as you know your earnings will exceed the limit limits the damage.
• Assuming self-employment income is assessed the same way as employment. Self-employed earnings are based on profit after expenses, not turnover, and are assessed differently.

Frequently asked questions

How much can I earn and still get Carer’s Allowance? Your net earnings (after tax, National Insurance, half of pension contributions, and certain expenses) must not exceed £204 a week in 2026/27.

What happens if I go over the limit by a small amount? You lose the entire week’s Carer’s Allowance payment for that week — there’s no partial or reduced payment for going slightly over, so even a small excess has the same effect as a large one.

Does the earnings limit rise automatically each year? As of 2026/27, the earnings limit is linked to 16 times the National Living Wage, meaning it’s expected to rise automatically each April as the National Living Wage increases, rather than remaining frozen.

Can I deduct childcare costs from my earnings for the Carer’s Allowance test? Yes — certain care costs, including for a child or for the person you care for while you’re working, can be deducted when calculating your net earnings for this purpose.

I’m self-employed — how is my income assessed? Based on your profit after allowable business expenses, assessed in the period it’s received, rather than your total turnover.

What if my pay varies week to week? Keep track of your net earnings weekly rather than just checking your average — a single higher-paid week can affect that specific week’s entitlement even if your overall average is under the limit.

What should I do if I’ve been overpaid? Contact the Carer’s Allowance Unit as soon as you realise, since overpayments need to be repaid regardless, and reporting promptly can prevent the amount from growing further.

Does working part-time automatically keep me under the limit? Not necessarily — it depends on your hourly rate and net pay after deductions, not just whether you work full or part time. It’s worth calculating your specific net weekly earnings rather than assuming.

Sources

• GOV.UK — Carer’s Allowance
• GOV.UK — Benefit and pension rates 2026 to 2027