Carer's Allowance and other financial support

Carer's Allowance

The main UK benefit for unpaid carers. Eligibility:

• You provide at least 35 hours of care per week;
• The person you care for receives certain qualifying benefits, including the middle or higher rate of Attendance Allowance, or the daily living component of PIP, or DLA care component at the middle or higher rate;
• You are 16 or over;
• You earn no more than £151 a week (after tax, National Insurance and certain expenses);
• You are not in full-time education (over 21 hours a week);
• You meet residence and immigration requirements.

Rate: around £83 a week (2025). Paid weekly in advance or every 4 weeks. Apply via GOV.UK or 0800 731 0297.

The "overlapping benefit" issue

Carer's Allowance overlaps with several other benefits, including State Pension. If your State Pension is more than the Carer's Allowance rate, you cannot be paid both, but applying for Carer's Allowance still establishes "underlying entitlement", which can trigger:

• Carer Premium in Pension Credit (around £45 a week extra);
• Carer Element in Universal Credit;
• Additional housing benefit considerations.

Even where Carer's Allowance is not paid in cash, claiming it can substantially benefit the household via these add-ons. A free benefits check from Citizens Advice or Age UK clarifies your specific situation.

Carer Premium

An extra amount added to means-tested benefits (Pension Credit, Universal Credit, Housing Benefit, Council Tax Support) where you have underlying entitlement to Carer's Allowance. Around £45 a week.

Carer's Credit

A National Insurance credit that fills gaps in your NI record when you cannot work because of caring. Important for State Pension entitlement. Available where you provide 20 hours or more of care per week and meet certain conditions. Apply via GOV.UK.

Council Tax considerations

Several Council Tax reductions can apply:

• Severe Mental Impairment exemption: for the person with dementia, requires a GP letter. Substantial reductions or full exemption depending on household composition;
• Carer disregard: if you live with and care for someone, you may be disregarded for Council Tax;
• Council Tax Support: means-tested reduction.

Contact your local council to claim.

For the person with dementia

Several benefits support the person directly:

• Attendance Allowance or PIP;
• Pension Credit (with Carer Premium where applicable);
• Winter Fuel Payment, Cold Weather Payment;
• Free prescriptions in some circumstances.

Carer's Leave

From April 2024, the Carer's Leave Act gives employees one week of unpaid carer's leave per year. Plus rights to:

• Flexible working;
• Emergency time off for dependants;
• Reasonable adjustments where you have a disability of your own.

Carer's grants

One-off grants are available through various charities:

• Carers Trust grants for specific needs;
• Alzheimer's Society and Dementia UK occasional grants;
• Local authority discretionary funds;
• Charitable trusts (Turn2us has a grant finder tool).

Pension considerations

State Pension entitlement may be affected by years out of work caring. Carer's Credit and Carer's Allowance both protect NI record. Some occupational pensions allow you to remain a member while not contributing during a caring period; check with your scheme.

Where to get help

• Citizens Advice: free benefit check and help with claims;
• Age UK Advice Line: 0800 678 1602;
• Carers UK Helpline: 0808 808 7777;
• Turn2us benefits and grants calculator: turn2us.org.uk;
• Local council welfare rights team.

A free benefits check often reveals £1,000 to £5,000 a year of unclaimed entitlement. Worth the half hour it takes.