Effect on other benefits for Carer Support clients

The three different components of Carer Support affect other benefits that Carer Support clients may be receiving in different ways.

The Carer Support Payment component of Carer Support 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. 

The other two components of Carer Support, Scottish Carer Supplement and Carer Additional Person Payment, are not intended as ‘income replacement’ and they do not have any impacts on any other benefits that Carer Support clients may be receiving, or the benefits of the people they care for, including any additional cared for people.

Treatment of the Carer Support Payment component as income 

As an income replacement benefit, the Carer Support Payment component 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).

Carer Support Payment component - effect on the benefits of the person being cared for 

An award of the Carer Support Payment component can impact the benefits of the person that the carer is getting Carer Support Payment for. This is only the case where 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 their carer is paid Carer Support Payment (or 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. People in receipt of a Severe Disability Premium when their legacy benefits were moved to Universal Credit may have had a transitional element or amount added to their Universal Credit so they were not made worse off by Universal Credit not including a Severe Disability Premium. This transitional element or amount is not affected by a carer being awarded Carer Support Payment for caring for them, though it may be ended for other reasons.

Income Tax - implications of receiving Carer Support

As an income replacement benefit, Carer Support Payment is taxable – so clients may need to pay tax from their Carer Support Payment. In practice, this will impact clients only where their taxable income is over the personal allowance for tax (£12,570 in 2024/25).

In line with the policy for Carer’s Allowance Supplement, which was introduced in 2018 and which the Scottish Carer Supplement component replaced in March 2026, Scottish Carer Supplement is taxable. Carers would need to pay tax on any taxable income which is above the personal allowance.

Carer Support Payment is an ‘income replacement’ benefit for those less able to work, and many clients do not have any paid work. However, carers can earn up to the earnings threshold and still receive support so some clients may be affected where their overall income from work, Carer Support Payment, and Scottish Carer Supplement exceed the personal allowance For current and previous levels of the earnings threshold please see Disability, winter heating and carers benefit payment amounts.

It is the responsibility of the individual client, rather than Social Security Scotland, to notify HMRC if they have taxable income over the personal allowance for tax. Carers are made aware of this in their award letter for Carer Support.

Carer Additional Person Payment is not taxable and does not need to be reported to HMRC.

Tax Free Childcare 

Tax Free Childcare is a UK-wide government scheme aimed at helping working parents with their childcare costs. Recipients of the Carer Support Payment component of Carer Support 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 the Carer Support Payment component 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 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, 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 is available at: www.gov.uk/carers-credit (link is external) 

Carer’s Allowance Supplement 

Scottish Carer Supplement will replace Carer’s Allowance Supplement for carers in receipt of Carer Support from 15 March 2026. However, any carers in Scotland (or eligible carers living abroad with a genuine and sufficient link to Scotland) who are in receipt of Carer’s Allowance after 15 March 2026 will continue to get Carer’s Allowance Supplement instead of Scottish Carer Supplement. There will be very few of these carers.

In addition to this, carers may be awarded Carer’s Allowance Supplement if they are awarded Carer Support Payment under the rules which applied before 15 March 2026, when Carer Support Payment was replaced with Carer Support. This may happen following a new application for Carer Support where backdating is requested to a date before 15 March 2026, the resolution of a re-determination or appeal, or the reinstatement of an award after a suspension.

Carers who receive backdated awards of Carer Support Payment for periods before 15 March 2026 may be eligible for Carer’s Allowance Supplement if their backdated award covers any Carer’s Allowance Supplement qualifying dates. There are two Carer’s Allowance Supplement qualifying dates a year, in April and October.

When backdating an award to before 15 March 2026, Client Advisors must check whether carers are eligible for Carer’s Allowance Supplement. For guidance on this, see [insert link to CAS Operational Guidance on paying clients with CSP backdated to before 15 March].

For current and previous rates of Carer’s Allowance Supplement please see Disability, winter heating and carers benefit payment amounts.

‘Uplift’ payment – for clients who have moved to Scotland from the rest of the UK or were ‘missed case transfer’ cases

Where a carer who was getting Carer’s Allowance is awarded Carer Support following a move from the rest of the UK to Scotland, or, having been identified as having been missed from the case transfer process from Carer’s Allowance, and would have been entitled to any payment of Scottish Carer Supplement (SCS) or Carer Additional Person Payment (CAPP) had their entitlement to Carer Support Payment begun on a date between:

• the date of the move, or 15 March 2026 for missed case transfers, and
• the date their entitlement to Carer Support begins

their first payment should be increased by the value of the SCS and CAPP payments they would have been entitled to for each award week between these dates. (Carer Support Payment Regulations, Regulation 41A(3 – 3A.)

For more information see the cross-border Decision Making Guidance