From Monday, April 7, 2025, thousands of unpaid carers across the UK will become eligible for Carer’s Allowance, thanks to a change in the earnings threshold by the Department for Work and Pensions (DWP). This update means around 60,000 more carers can now claim £333 per month, or £3,396 annually, without losing their entitlement.
If you’re caring for someone and juggling a job or self-employment, this change might finally open the door for you to access crucial financial help. Here’s everything you need to know about the new rules, how the threshold works, and how to apply.
What’s Changing With Carer’s Allowance in April 2025?
Until now, the earnings cap for Carer’s Allowance was set at £151 per week. If you earned even a penny more, you would lose the benefit for that week.
From April 7, 2025, the weekly earnings limit has increased to £196 per week.
That’s an increase of £45 per week, giving part-time workers and carers a bit more breathing room without losing their entitlement to the benefit.
Why This Matters: Real Impact on Carers
The DWP says this change will benefit up to 60,000 people, many of whom were previously forced to choose between working extra hours or losing their Carer’s Allowance.
With the new rules, you can now work and earn more, while still receiving the £76.75 per week Carer’s Allowance (equivalent to £333 a month or £3,396 a year).
How Carer’s Allowance Works
To qualify for Carer’s Allowance, you must:
- Be caring for someone at least 35 hours a week
- Earn less than £196 a week after allowable deductions
- Not be in full-time education or subject to immigration control
- The person you care for must be on a qualifying benefit (e.g., PIP, DLA, Attendance Allowance)
What Deductions Count Toward the £196 Limit?
If you’re employed or self-employed, the DWP allows certain deductions before calculating your weekly earnings for Carer’s Allowance:
- Income Tax and National Insurance
- Half of any pension contributions
- Approved business expenses (if self-employed)
- Certain care costs paid to look after your children or disabled person while you work
Example:
If you earn £200 a week but pay £20 into a pension, you can deduct £10 (half of £20), making your earnings £190—which is under the new threshold, so you’d still qualify.
Where to Apply or Report Changes
Depending on where you live, the process is slightly different:
- England, Wales & UK-wide: Contact the DWP Carer’s Allowance Unit
- Scotland: You’ll be moved over to Carer Support Payment, managed by Social Security Scotland
- Northern Ireland: Contact the Disability and Carers Service – Carer’s Allowance team
Important: Always report changes in your circumstances (like income or hours worked) to the correct authority. Departments do not automatically share information, so contacting the right office is essential.
The rise in the Carer’s Allowance earnings threshold is a welcome step toward recognising the vital role unpaid carers play. With the new £196 weekly cap, you can now earn more and still receive support, easing the financial pressure many carers face.
Check your income, apply if eligible, and don’t miss out on this benefit that could provide real relief and stability while you care for someone else.
FAQ’s
How much is Carer’s Allowance in 2025?
Carer’s Allowance pays £76.75 per week, which adds up to around £333 per month or £3,396 per year.
What is the new earnings limit for Carer’s Allowance in 2025?
From April 7, 2025, the weekly earnings limit has increased to £196. You can earn up to this amount (after deductions) and still qualify.
What deductions are allowed before calculating Carer’s Allowance earnings?
You can deduct Income Tax, National Insurance, half of pension contributions, business expenses (if self-employed), and some care costs.
How do I apply for Carer’s Allowance?
Apply online at GOV.UK or contact the Carer’s Allowance Unit. In Scotland, apply through Social Security Scotland. In Northern Ireland, contact the Disability and Carers Service.
How many people will benefit from the new earnings threshold?
According to the DWP, an extra 60,000 carers will now be eligible for Carer’s Allowance due to the higher earnings cap.
Carers’ with a mere £3.360 per month. Whilst Chancellor Reeves awarded herself over £4.000 to keep her SECOND HOME WARM, a week or two before she Cut the Cold weather heating allowance to Pensioners. Scandalous. Yet she Smiles whilst Killing the Economy.