Starting next week, a major change by the Department for Work and Pensions (DWP) will allow 60,000 more people to access a £333 monthly benefit — thanks to an increase in the Carer’s Allowance earnings threshold.
This update offers greater financial support to unpaid carers who were previously ineligible due to strict income limits.
Here’s everything you need to know about who qualifies, how to apply, and what you can expect going forward.
What Is the £333 Monthly DWP Benefit?
The Carer’s Allowance is a benefit provided to people who care for someone with a disability or long-term illness. Previously limited by a tight earnings cap, this benefit pays £83.30 per week, which equals about £333.20 per month.
The new policy, effective April 8, 2025, increases the weekly earnings limit, meaning more working carers can now qualify without losing access to the benefit.
New Eligibility Criteria (Effective April 2025)
Here is a comparison of the previous and new eligibility limits:
| Category | Before April 2025 | From April 8, 2025 |
|---|---|---|
| Weekly Earnings Limit | £151 | £196 |
| Carer’s Allowance (Weekly) | £81.90 | £83.30 |
| Monthly Benefit Total | ~£327.60 | ~£333.20 |
This change opens the door to 60,000 additional carers, many of whom were disqualified under the old earnings rule.
Who Is Eligible?
To qualify for the £333 Carer’s Allowance, you must:
- Be aged 16 or over
- Provide at least 35 hours of care per week
- Earn £196 or less per week (after allowable deductions)
- Be living in the UK
- Not be in full-time education
- Be caring for someone who receives:
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Attendance Allowance
You don’t have to be related to or live with the person you care for.
How to Apply for Carer’s Allowance
There are multiple ways to apply for the DWP Carer’s Allowance:
- Online:
- Fill out the official form with your personal details, National Insurance number, and the care recipient’s benefit details.
- By Post:
- Request a printed application form, fill it in manually, and return it to the DWP.
- Phone Assistance:
- Contact DWP’s dedicated helpline for help with the application.
Before applying, ensure you have your bank details, employment information, and care recipient’s benefit info ready.
How and When Will You Be Paid?
Approved carers will receive £83.30 per week, paid either:
- Weekly in advance, or
- Every four weeks, directly into your bank account
Payments will begin after your claim is approved, usually within 6–8 weeks of applying.
Important Considerations
Receiving Carer’s Allowance may affect:
- Your other benefits: It counts as income, so it may reduce income-based benefits like Universal Credit
- The person you care for: Their benefits may also be adjusted
- Your taxes: Carer’s Allowance is a taxable benefit if your total income exceeds the personal allowance
It’s essential to keep all details updated to avoid overpayments or delays.
This is a major win for unpaid carers across the UK. The updated £196 earnings threshold and continued £333 monthly Carer’s Allowance gives working carers more breathing room and financial support.
If you’ve been previously disqualified or never applied, now is the time to check your eligibility and submit your application.
FAQs
Can I still work and receive the £333 benefit?
Yes, as long as your weekly earnings after deductions are under £196, you remain eligible.
What happens if my earnings temporarily exceed the limit?
You must notify DWP. Failure to do so could lead to overpayments, which must be repaid.
Can I claim if I receive a State Pension?
If your State Pension is higher, you may not get paid the Carer’s Allowance, but you could receive underlying entitlement that boosts other benefits.