13.11.25

“Can I Work and Still Get Carer’s Allowance?” – A Guide for Parent Carers

Around 1.5m people in the UK claim Carer’s Allowance and we are often asked questions about how working and earning interacts with this benefit. Carer’s Allowance is not means-tested, however, working can potentially impact a person’s access to this benefit. In this piece we explain in more detail why this is and recap on some of the key facts about Carer’s Allowance.

Who is eligible for Carer’s Allowance?

Here’s a reminder of the eligibility criteria for Carer’s Allowance. To be able to claim this, you must meet the following eligibility requirements:

• You look after someone who gets a qualifying disability benefit (including PIP daily living component, DLA middle or higher rate care component and Attendance Allowance).
• You look after that person for at least 35 hours a week.
• You are aged 16 or over.
• You are not in full-time education.
• You don’t earn over £196.00 a week.
• You satisfy UK presence and residence conditions.

So, providing that – as well as working – you still provide care for at least 35 hours per week, and you don’t earn over £196.00 per week from your employment, you can work and receive Carer’s Allowance.

Is the £196.00 before or after tax?

The weekly earnings threshold is £196.00 for Carer’s Allowance. This is a net figure, so this is after tax and National Insurance.

For the purposes of Carer’s Allowance, you are also able to deduct 50% of any pension contributions you make from your earnings and there are some expenses that can also be deducted.

Only expenses that are ‘wholly and exclusively for the purpose of the business’ can be deducted from your gross earnings. If you are unsure about whether a specific expense is deductible, it is advisable to contact the Carer’s Allowance department directly for clarification.

If, while you work, you pay someone to look after the person you care for – or a child under 16 you receive Child Benefit for – you can deduct this cost from your earnings (up to the value of half of your total earnings). This is not possible, however, if the person you pay is a close relative of yours or the person you look after.

What if my earnings vary from week to week?

If your earnings change frequently from week to week, it is possible to ask the Carer’s Allowance department to calculate an average across a specified period to determine your weekly earnings for the purposes of working out whether you remain entitled to claim it.

The Carer’s Allowance department will use a ‘recognised cycle of work’ or a period of 5 weeks, when averaging out a person’s earnings. It is also possible for them to use a different time period if this will determine a more accurate earnings figure for that individual.

If you are self-employed, it’s common for the Carer’s Allowance department to review your earnings over a specific trading period, which could be a full year.

How should I keep the Carer’s Allowance department updated regarding my earnings?

If you are just starting work, you should report this as a change in your circumstances to the Carer’s Allowance department straight away. They can be contacted by phone on 0800 731 0297.

Other considerations

Carer’s Allowance is a taxable benefit. This means if you are earning and receiving Carer’s Allowance, the amount you receive from both sources will be added together by HMRC to determine whether your income is above or below the personal allowance for income tax, in order to calculate how much income tax you are required to pay. If you start working, you should let HMRC know that you are also receiving Carer’s Allowance, to avoid any potential underpayments of income tax.

It’s important to remember that, if you are receiving means-tested benefits as well as Carer’s Allowance, these will also be impacted by your earnings if you start work. If you are considering taking on employment, you may wish to discuss this with one of our experts, who will be able to advise you on how working will impact your benefit awards.

Further information

If you want to read more about how Carer’s Allowance works and what additional support might be available to you as an unpaid carer, including information on working, respite and carers assessments, Carers UK have a whole host of resources on their website – Help and advice | Carers UK.

How Renaissance Legal can help you

Our specialist welfare benefits experts can help you with everything benefits-related, including helping you to work out your benefit entitlements and completing applications for benefits.

To speak to someone in the benefits team, please contact us on 01273 610611 or email us to arrange a consultation about your personal circumstances.