Effect on other benefits for Carer Support Payment clients

Carer Support Payment is an ‘income replacement’ benefit. It is intended to replace income as carers may be less able to take on paid work because of their caring role. As an ‘income replacement’ benefit, it can affect other benefits a client receives. 

Treatment of Carer Support Payment as income 

As an income replacement benefit, Carer Support Payment will count as income when entitlement to income-related benefits (or ‘means tested’ benefits) is calculated – so these benefits will be reduced by the amount of Carer Support Payment a client receives.

The following income-related  benefits are reduced at the rate of £1 for £1 by the amount of Carer Support Payment received: 

• Universal Credit 
• income-based Jobseeker’s Allowance  
• income-related Employment and Support Allowance  
• Income Support  
• Housing Benefit 
• Council Tax Reduction 

Clients will be better off overall from receiving Carer Support Payment even with this reduction as these means-tested benefit calculations will include a Carer Premium, Carer Addition, or Carer Element in recognition of the caring role. These additional amounts are: 

• Carer Premium: an additional amount included in the calculation of income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Income Support, Housing Benefit, and Council Tax Reduction. Carer Premium is worth £46.40 a week (2025/26 rate) and can be paid at double rate if the client and their partner both qualify. 
• Carer Addition: An extra amount of money paid with Pension Credit. Carer Addition is worth £46.40 a week (2025/26 rate) and can be paid at double rate if the client and their partner both qualify. 
• Carer Element: An extra amount of money paid with Universal Credit. This will be paid if the client is entitled to or receiving Carer Support Payment but it is not necessary to claim Carer Support Payment for the Carer Element of Universal Credit to be paid. Eligibility for the Carer Element will mean the client is in the ‘no work-related requirements’ group for Universal Credit. Carer Element is worth £201.68 a month (2025/26 rate).   

Effect on the benefits of the person being cared for 

Where a client is awarded Carer Support Payment this can affect the benefits of the person they are caring for, if the person they are caring for is receiving a Severe Disability Premium. Severe Disability Premium is an additional amount paid in some income-related benefits to help with the cost of a disability. These benefits are: 

• Income Support 
• Income-based Jobseeker’s Allowance 
• Income-related Employment and Support Allowance 
• Pension Credit 
• Housing Benefit 
• Council Tax Reduction

If the cared for person is receiving the Severe Disability Premium in one of these means tested benefits (it is called Severe Disability Addition in Pension Credit) they will lose this if the client is paid Carer Support Payment, Carer’s Allowance or the Carer Element of Universal Credit.

This is because the Severe Disability Premium is provided to help the disabled person with support which would be provided by the Carer Support Payment/Carer’s Allowance/Carer Element of Universal Credit recipient.

There is no Severe Disability Premium within Universal Credit so these Premiums would only be in payment to cared for people in receipt of means tested benefits that pre-dated Universal Credit (also known as ‘legacy benefits’) which are listed above. 

Income Tax  

As an income replacement benefit, Carer Support Payment is taxable – so clients may need to pay tax from their Carer Support Payment. In practice, Carer Support Payment will be taxed only where the client’s taxable income is over the personal allowance for tax (£12,570 in 2025/26). It is likely that most clients won’t be taxed on their Carer Support Payment. This is because the earnings limit which applies to Carer Support Payment (£196 per week in 2025/26) means recipients are unlikely to have taxable income over the personal allowance.

Tax Free Childcare 

Tax Free Childcare is a UK-wide government scheme aimed at helping working parents with their childcare costs. Carer Support Payment recipients who are in a couple with a child (or qualifying young person for the purposes of Tax Free Childcare) where their partner works may be eligible for Tax Free Childcare.

Where one partner is in ‘qualifying paid work’ and the other partner is unable to work through sickness, disability or caring responsibilities, HMRC will treat the partner that is unable to work as being in qualifying work.   

National Insurance credits  

Carers who are receiving Carer Support Payment will receive Class 1 National Insurance credits automatically for each week they are eligible. National Insurance credits help with gaps in a client’s National Insurance record and Class 1 credits count towards entitlement to State Pension and some other benefits.  

Carer’s Credit  

Clients who are caring for one or more people with disabilities for at least 20 hours a week but are not eligible for Carer Support Payment may be eligible for Carer’s Credit. Carer’s Credit is a UK-wide National Insurance credit that helps with gaps in a carer’s National Insurance record.

Carer’s Credit is a Class 3 National Insurance credit for people who are not in receipt of Carer Support Payment, Carer’s Allowance, the Carer’s Element of Universal Credit or Income Support.

This ensures that clients will be entitled to State Pension when they reach State Pension age. An individual’s State Pension is based on their National Insurance record.

Carers can apply for Carer’s Credit using a form from the gov.uk website. More information about Carer's Credit is available from the gov.uk website.

Carer’s Allowance Supplement 

Carers who are getting Carer Support Payment may be eligible for Carer’s Allowance Supplement. Carer’s Allowance Supplement is an extra payment for people in receipt of Carer Support Payment (or Carer’s Allowance) in Scotland.

Carers will receive payments automatically if they are getting Carer Support Payment (or Carer’s Allowance) in Scotland on the relevant qualifying dates.

Carer’s Allowance Supplement is paid twice a year in June and December and is £293.50 in 2025/26. The qualifying dates for 2025/26 are 14 April 2025 (for the June payment) and 13 October 2025 (for the December payment).