Carer's Allowance earnings limit rises to £196 a week
The weekly earnings threshold above which Carer's Allowance is withdrawn rose for the new tax year, with the DWP continuing to review overpayment recovery.
By Money Guide editorial team
Published:
The earnings threshold for Carer's Allowance rose to £196 a week (after allowable deductions) for 2026/27. Earn more than this and the entire allowance — £83.30 a week — is withdrawn, a 'cliff edge' that has generated long-standing criticism.
The DWP has continued reviewing its handling of historic overpayments, after a 2024 series of cases in which carers were left with five-figure debts following short or accidental breaches of the limit. Future overpayment recovery rules are due to be tightened to give carers more notice and clearer information.
Carer's Allowance can reduce other means-tested benefits and may affect the person being cared for: it can stop them receiving a 'severe disability premium' or its Universal Credit equivalent. Always check both sides of the household calculation before claiming.
Carer's Credit (a National Insurance credit for those caring for 20+ hours a week below the Carer's Allowance threshold) protects State Pension entitlement without giving up other income.