Carer's Allowance earnings limit checker
The limit is not your gross wage. It is what you keep after tax, National Insurance and half of any pension. Enter your pay and see where you stand.
How the earnings limit works
Carer's Allowance uses a net earnings figure, not your gross wage. The DWP starts with your pay, then takes off income tax, National Insurance, half of any pension contribution, and some care or equipment costs you need to work. Only what is left is measured against the £204 a week limit. That is why someone earning slightly more than £204 gross can still qualify.
The limit is a hard edge. Go a single pound over in a week and you lose the whole £86.45, not a proportion of it. Because pay can vary week to week with overtime or bonuses, it is worth leaving yourself some room. Increasing a pension contribution is a common way to bring the counted figure down and keep the payment safe.
Worked example
Suppose you earn £210 a week gross and pay nothing into a pension. At that level there is usually no income tax or National Insurance to deduct, so your counted earnings are close to £210, which is over the £204 limit. Put £15 a week into a pension and £7.50 of that is deducted, along with any tax and National Insurance, which can be enough to bring you back under the line and keep the full £86.45 a week.
Common questions
What is the Carer's Allowance earnings limit for 2026/27?
The limit is £204 a week from April 2026. What counts is your net earnings after income tax, National Insurance and half of any pension contribution, not your gross pay. Carer's Allowance itself is £86.45 a week.
Does my whole wage count towards the limit?
No. The Department for Work and Pensions takes your gross pay and deducts income tax, National Insurance, half of any pension contribution you make, and certain care or equipment costs you need to do your job or care. The figure left over is what is measured against the limit.
What happens if I earn £1 over the limit?
The limit is a cliff edge, not a taper. If your counted earnings go even £1 over £204 in a week, you lose all of your Carer's Allowance for that week, not merely a proportion of it. This is why paying a little more into a pension can protect the whole payment.
Can paying into a pension keep me eligible?
Yes. Half of any pension contribution is deducted before your earnings are measured, so paying more into a pension lowers the counted figure. If you are just over the limit, a modest pension contribution can bring you back under it.
Do I still qualify while getting the State Pension?
Carer's Allowance overlaps with the State Pension, so you often cannot be paid both in full. If your State Pension is more than Carer's Allowance you usually get no Carer's Allowance, but you may still get an 'underlying entitlement' that boosts other benefits. Check with the DWP.