What is the Carer's Allowance earnings limit for 2026/27?

£204 a week, after income tax, National Insurance and allowed expenses such as half of your pension contributions and some care costs.

What happens if I earn over £204 in a week?

There is no taper: if your counted earnings are over the limit, you are not entitled to Carer's Allowance for that week, even if you are only a penny over. Tell the Carer's Allowance Unit about changes in your pay straight away to avoid an overpayment.

Carer's Allowance Earnings Limit Calculator 2026/27 (£204 a week)

Your pay

How often are you paid?

Weekly Every 2 weeks Every 4 weeks Monthly

Gross pay a week

Before anything is taken off. On your payslip as gross or total pay.

Your pension contributions a week

What you pay in, not your employer. Half of it is taken off.

Estimate my tax and National Insurance for me (a normal 1257L tax code, one job). Untick to type them from your payslip.

Work expenses a week

Things you need to do the job and pay for yourself, like specialist clothing or equipment.

Paid care while you work a week

For someone to look after the person you care for, or your children, while you're at work. Not paid to a close relative. Up to half your net pay counts.

The other rules

Earnings are only one test. Tick each one that's true.

I'm 16 or over I spend at least 35 hours a week caring for them They get a qualifying benefit: PIP daily living, Attendance Allowance, DLA middle or highest care, Adult or Pension Age Disability Payment, Child Disability Payment middle or highest care, Armed Forces Independence Payment, or Constant Attendance Allowance I'm not in full-time education or studying 21 hours a week or more I live in England or Wales and have done for at least 2 of the last 3 years (Northern Ireland has its own office with the same rules; in Scotland it's Carer Support Payment)

How the earnings limit works

What counts towards the £204?

Your earnings from a job or self-employment after income tax, National Insurance and allowed expenses. Half of what you pay into a pension is taken off, as are work expenses you need for the job, and paid care costs while you work up to half of your net pay. Occupational and private pensions you receive don't count as earnings.

What if I go over in one week?

There is no sliding scale. If your counted earnings are over £204, you get no Carer's Allowance for that week, £86.45 lost even if you were a penny over. The government asked for views on a taper in 2026, but for now the cliff edge is still the rule. If your pay goes up, tell the Carer's Allowance Unit straight away, because overpayments are claimed back.

I'm paid monthly. How is that turned into weekly?

Monthly pay is multiplied by 12 and divided by 52. Four-weekly pay is divided by 4 and fortnightly pay by 2. If your hours change from week to week, the DWP may look at your earnings over a longer period, so ask them how they'll treat your pay.

What about the old overpayments?

After an independent review, the DWP is looking again at overpayments caused by how it averaged earnings between April 2015 and September 2025. You don't need to apply; it will contact you if it needs more information.

How much is Carer's Allowance?

£86.45 a week in 2026/27. In Scotland, Carer Support Payment has replaced it for new claims, at the same rate and with the same £204 limit.

How is the tax estimate worked out?

For one job on the standard 1257L code: income tax at 20% on weekly pay above £241.73, and National Insurance at 8% on weekly pay above £242. Real payslips can differ, especially in the first weeks of a tax year, with a different code or more than one job, so use your payslip if you have it. Self-employed? Untick the estimate and put in your own figures.