Carer’s Allowance eligibility while working

Yes, you can work and still receive Carer's Allowance, but there is an earnings limit you must stay within.

Current position:

To qualify for Carer's Allowance you must, among other things, earn no more than a set net weekly amount after certain deductions. As of April 2024, the earnings limit is £151 per week net. This was increased from £139 per week, so it is worth checking you are using the current figure.

What counts as earnings:

The figure used is your net earnings, meaning your gross pay minus income tax, National Insurance contributions, and half of any occupational or personal pension contributions. Certain expenses directly connected to your work can also be deducted, for example the cost of care you pay for the person you look after, or for a child, while you are at work.

Hours of work:

There is no specific cap on the number of hours you can work. The test is purely financial, based on whether your net earnings fall within the limit. However, you must still be providing at least 35 hours of care per week to the person you look after, so in practice this naturally limits how many hours you can realistically work.

Self-employed earners:

If you are self-employed, your net earnings are calculated after deducting allowable business expenses. The same weekly limit applies.

Important points to be aware of:

1. If your earnings go over the limit even for one week, you lose Carer's Allowance for that week. If it happens regularly, your award may be stopped and you could be asked to repay overpayments.

2. You should report any changes in your earnings promptly to the Department for Work and Pensions to avoid building up an overpayment.

3. Even if your earnings are too high to receive the payment itself, you may still have what is called an "underlying entitlement" to Carer's Allowance. This can be relevant because it may give you access to a carer premium or carer element in other means-tested benefits such as Universal Credit, Pension Credit, or Housing Benefit.

4. The earnings limit is reviewed each year, usually increasing in April, so it is worth checking the current figure at the start of each new benefit year.

Practical suggestions:

If you are close to the earnings limit, it is worth carefully tracking your weekly pay and making sure all allowable deductions are being applied. If you are slightly over the threshold, check whether any legitimate deductible costs, such as care costs incurred while you work, could bring you back under.

If you are already receiving Carer's Allowance and are thinking of starting or increasing work, contact the Carer's Allowance Unit before your earnings change so you can understand the impact and avoid an overpayment situation.

The gov.uk Carer's Allowance page has a straightforward online tool to check your eligibility, and the Carers UK helpline can also assist with benefit calculations.