North carers’ earnings cap rises to £204 from 6 April
Working carers across the North will be able to earn more without losing Carer’s Allowance from Monday 6 April 2026. The weekly earnings limit moves up to £204 under this year’s social security up-rating, a change intended to reflect 16 hours’ work on the National Living Wage and give clearer headroom for part‑time shifts. (carersuk.org)
What this means on the payslip is straightforward. At the April rate of £12.71 for the National Living Wage, 16 hours totals £203.36 – just inside the new cap. Remember Carer’s Allowance is assessed on net weekly earnings: tax, National Insurance and some work expenses are deducted, as can half of any pension contribution. A single pound over the limit still means losing Carer’s Allowance for that week, so overtime and pay dates need careful watching. (gov.uk)
Carers UK has welcomed the move while pushing for deeper reform. Its chief executive Helen Walker called the rise above £200 “a welcome increase” but warned the benefit still falls short for many families, urging a full review of Carer’s Allowance. (carersuk.org)
This earnings change applies in England and Wales. Scotland sets its own Carer Support Payment and ministers there have signalled they will align the threshold with the £204 figure for 2026/27. Scotland is also introducing a Carer Additional Person Payment, worth up to £520 a year from March 2026, for people caring for more than one person. (gov.scot)
Another quiet but important change will matter to residents in supported accommodation where benefit is paid directly to the provider. The weekly personal expenses amount rises from £32.30 to £33.55, leaving a little more for day‑to‑day costs like toiletries or bus fares. It’s only £1.25 more, but for people living on tight budgets it counts. (legislation.gov.uk)
In plain northern terms: a part‑time retail worker in Bradford doing 16 hours a week at £12.71 should now be under the cap, but a fifth shift or an untimely bonus could tip them over. Because Carer’s Allowance is worked out weekly, irregular hours can be risky. Keep every payslip, and if your hours fluctuate, speak to your carers’ centre or welfare rights team before the new rota lands. (carersuk.org)
The Department has been told to sort long‑running overpayment problems too. Following the independent review led by Liz Sayce OBE, ministers say they will reassess Carer’s Allowance overpayments caused by past guidance on averaging fluctuating earnings, with reductions or write‑offs starting in 2026. That could ease debts for some northern families hit by historic errors. (gov.uk)
For employers across our region, especially in care, retail and hospitality, the £204 line is now the planning marker. Rota patterns that keep weekly earnings steady, and offering salary‑sacrifice pension contributions where appropriate, can help staff stay within the limit while keeping shifts covered. Clearer payslips and predictable cut‑off dates reduce the risk of carers accidentally breaching the threshold. (carersuk.org)
This sits within the wider 2026 up‑rating package. Working‑age benefits are set to rise in April by the CPI measure for September 2025 (3.8%), while the State Pension increases by 4.8% under the triple lock. The Government Actuary has confirmed the mechanics behind this year’s orders, which drive the annual April changes. (hansard.parliament.uk)
Devolution matters. Northern Ireland typically mirrors the England and Wales position through its own regulations, while Scotland’s separate system has added support such as the Carer Additional Person Payment. If you’ve recently moved over the border into Scotland, you’ll transition from Carer’s Allowance to Carer Support Payment with no gap in entitlement, but the rules and extras are administered by Social Security Scotland. (legislation.gov.uk)
What to do now if you’re a carer in the North: check April rotas against the £204 cap; review deductions (tax, NI and pension) that count towards net earnings; and get advice before picking up extra hours. Local carers’ organisations can help, and Carers UK’s guidance sets out exactly what can be deducted when working out eligibility. (carersuk.org)