The short answer
You can earn up to £204.00 a week after deductions and still get Carer’s Allowance of £86.45 a week. The deductions are Income Tax, National Insurance, half of what you pay into a pension and, in some cases, what you pay for care while you work.
In Scotland, Carer’s Allowance has been replaced by Carer Support Payment. The earnings limit is the same. Use the Carer Support Payment calculator.
How this is calculated
- Your pay is turned into a weekly amount.
- Income Tax and National Insurance are taken off.
- Half of your pension contributions are taken off.
- Care costs you pay while at work are taken off, up to half of what is left. Care paid to a close relative does not count.
- The result is compared with £204.00.
If you are self-employed, the same limit applies to your profit after tax, NI, half your pension and allowable business expenses, usually averaged over the trading year. This calculator is set up for employees.
Worked example
Jo is paid £1,000 a month in a part-time job, with £14 Income Tax, £8 National Insurance and £50 into a workplace pension. Weekly pay is £1,000 × 12 ÷ 52 = £230.77. Tax and NI come to £5.08 a week. Half the pension is £5.77 a week. That leaves £219.92, which is £15.92 over the limit. Jo would need to cut hours, pay more into the pension or claim care costs to keep Carer’s Allowance.
Common questions
How much can I earn on Carer’s Allowance in 2026/27?
£204.00 a week from 6 April 2026, up from £196.00. That is after Income Tax, National Insurance, half of your pension contributions and some care costs are taken off.
What happens if I earn £1 over the limit?
You get no Carer’s Allowance for that week. There is no taper, so earning a few pence over means losing the whole £86.45. If the DWP keeps paying you, it is an overpayment that you will usually have to repay.
How is monthly pay turned into a weekly figure?
Monthly pay is multiplied by 12 and divided by 52. Pay every two or four weeks is divided by 2 or 4.
Do bonuses and overtime count?
Yes. A bonus or overtime counts in the week or month it is paid, so one-off payments can take you over the limit for that period. If your pay goes up and down, ask the Carer’s Allowance Unit whether your earnings can be averaged.
Does Carer’s Allowance affect Universal Credit?
Carer’s Allowance counts as income for Universal Credit and reduces it pound for pound. You may still be better off, because claiming it can add the carer element to your UC award and protects your National Insurance record.