More than 60,000 new claims for Carer’s Allowance were made last year – boosting these individuals’ finances by £4,258 a year.
According to new figures released by the Department for Work and Pensions (DWP), 1.4 million carers were claiming Carers Allowance at last count in August 2024. This marked an increase of 5%, with an extra 62,000 more people claiming the benefit compared to the previous year.
However, around 10 million unpaid carers are believed to live in the UK, and many of them are likely eligible to claim. Carer’s Allowance is a benefit which is paid to people who provide care for someone else. To claim it, you need to be caring for someone for at least 35 hours a week – this can include helping them with everyday tasks such as washing, managing bills, or taking them to doctor’s appointments. This can be for anyone, and not just family members.
The person someone is caring for must also claim one of the qualifying benefits, which includes Attendance Allowance, the daily living component of Personal Independence Payment (PIP), or the care component of the Disability Living Allowance (DLA). You can only claim the allowance for one person, this means if you care for more than one you will only receive the one payment.
Carer’s Allowance is currently worth £81.90 a week or £327 every four weeks. Over the course of a year, the Carer’s Allowance benefit is worth £4,258.
There are some caveats to claiming, which is what can put some people off warns Suzanne Bourne, Head of Carer Support at Mobilise, the UK’s largest community of unpaid carers. One of these caveats is the Earnings Limit. To be eligible for the money, you can’t earn over £151 a week after tax, National Insurance, pension contributions, and allowable expenses. If you earn even £1 over, then you lose your entire entitlement for the benefit. Carers can also face prosecution for benefit fraud in these instances.
However, Chancellor Rachel Reeves changed the earning limit in last year’s Autumn Statement. From April 7, 2025, it will rise to £196 a week. According to the Chancellor, the rise will allow carers to work a further 16 hours a week at the minimum wage or £45 a week.
Suzanne noted that if you are claiming, it is vital you understand the rule and keep an eye on your weekly earnings. She said: “It is especially important to be aware of exactly how much you earn – this earnings ‘threshold’ is where the recent issues have come from. Currently, it’s up to the individual to check they are not exceeding this limit to avoid having to repay any overpayments. Although there are plans to automatically alert people at risk of falling into this trap, this is not yet the case.”
Suzanne said those who were unsure whether they would meet the criteria for Carer’s Allowance could use Mobilise’s free claim checker tool, which takes less than three minutes to complete. She added: “It is always worth checking these details before you apply for Carer’s Allowance or speaking to Citizens Advice to get some additional guidance. This is because Carers’ Allowance may affect any other benefits you receive or the benefits of the person you look after, so it’s important to be aware and ask for advice if you are concerned.”
Suzanne also noted that there are a number of other forms of financial support on offer for those who look after loved ones. Some of these benefits can be claimed instead of Carer’s Allowance, for those not eligible, and some can be claimed in addition. These benefits include:
Carer’s Credit – Anyone who provides 20 hours of unpaid care a week is eligible for this National Insurance credit, which helps individuals qualify for state pensions later on.
Carer’s Element – If you’re on a low income and receiving Universal Credit, you may be entitled to an additional £185.86 a month. The Universal Credit team can advise you on this
Carer’s Assessment (or Carer’s Support Plan for those in Scotland) – By requesting a Carer’s Assessment from your local council, you can find out if you’re eligible for any additional, one-off, direct payments to help you manage the impact of caregiving. Find out more here
Pension Credit – The Carer Addition (or “Carer Premium”) – If you’re aged 65 or over, and on a low income, you may also be entitled to credit which is separate from your State Pension to help with living costs. Find out more via the government’s website
Grants from local councils – Grants to help with caring costs can also be made by councils. Check what support is available to you using this grant search tool
Council tax discounts – If you’re on a low income and claiming a benefit, you may be eligible for reduced council tax. You can apply through the government’s website from your local council if they offer it
Heating benefits – It’s also worth checking if you’re eligible for the Warm Home Discount, Winter Fuel Payment, or the Cold Weather Payment. Find out more here
Discounts – There are a number of discounts available exclusively to people who look after loved ones, including discounted train tickets, days out and even free cinema tickets (with a CEA card)
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