Carer’s Allowance limit to £204 from 6 April 2026

From 6 April 2026, three practical benefit changes take effect across Great Britain. The Carer’s Allowance weekly earnings limit rises from £196 to £204; the personal expenses allowance for people in certain accommodation goes from £32.30 to £33.55; and the restriction on paying up‑rating increases to people not ordinarily resident in Great Britain is confirmed for this year’s round. These updates are set out in the Department for Work and Pensions’ Social Security Benefits Up‑rating Regulations 2026 (S.I. 2026/218), made on 4 March and laid before Parliament on 6 March, as recorded on the official UK legislation website.

For many readers, Carer’s Allowance is the headline change. If you provide at least 35 hours of care for someone who gets a qualifying disability benefit, you may claim Carer’s Allowance, but it comes with an earnings test. From 6 April, you can earn up to £204 in a week without being treated as ‘gainfully employed’ for Carer’s Allowance purposes, which would normally stop payment for that week. This amendment is made to the 1976 regulations and, in this instrument, applies in England and Wales; Scotland is moving to Carer Support Payment with its own rules and timetable.

Checking the £204 test starts with your payslip. The limit looks at what you earn in a week after allowable deductions such as income tax, National Insurance and some pension contributions. Suppose you work 18 hours at £12 an hour and your gross is £216. If tax, NI and half your pension contribution reduce that to £202, you stay within the limit that week. If your adjusted figure is £205, Carer’s Allowance would usually not be payable for that week. Keeping a small buffer and planning shifts can help you avoid a one‑off overshoot.

If you are self‑employed, the Department for Work and Pensions can look at average earnings over a period rather than a single week while still applying the £204 figure. Because circumstances vary, keep clear records of invoices, expenses and pension payments, and check official guidance or speak to an adviser if you are unsure how your deductions are treated.

The personal expenses allowance protects a small amount of your benefit when payments are made direct to an accommodation provider. From 6 April 2026 the protected amount is £33.55 a week, up from £32.30. Think of someone in a care home or a specified hostel where charges are taken from their benefit; the personal expenses allowance is the bit they still keep for everyday costs like toiletries, a bus fare, or topping up a phone.

Living abroad brings a different rule into focus. The annual Up‑rating Order increases many working‑age benefits and parts of the State Pension. For 2026, regulation 3 confirms that where someone is not ordinarily resident in Great Britain, increases may not apply. Some people overseas receive annual rises because of reciprocal arrangements, while others do not. If you live abroad or plan to move, check your position before assuming your benefit or pension will go up each April.

There is also a safeguard for disputed cases. If there is a question about the correct April rate for a benefit that is already in payment, the increase does not take effect until the Department for Work and Pensions, the First‑tier Tribunal or the Upper Tribunal decides the point. If the decision goes in your favour, arrears are typically paid from the date you were due the higher amount.

Finally, a note on coverage and housekeeping. The Regulations extend to England, Wales and Scotland, with the Carer’s Allowance earnings provision in this instrument applying in England and Wales and Scotland running its own approach for devolved benefits. Northern Ireland operates separate legislation. The 2025 up‑rating regulations are revoked as part of the annual reset. For learners, the takeaway is straightforward: know the new figures, check how they’re worked out, and keep evidence so that what you’re entitled to actually lands in your account.