The Department for Work and Pensions (DWP) is urging millions of unpaid carers to claim a little-known benefit that could boost their state pension by up to £328 a year. Experts warn that career breaks taken to care for relatives can result in gaps in National Insurance contributions, potentially reducing state pension entitlement. To qualify for any state pension, a minimum of 10 years’ worth of National Insurance contributions is needed, with 35 years required for the full amount of £221 a week.
Mobilise, a community for unpaid carers, is encouraging the nation’s 10 million carers to apply for ‘carer’s credit’ to ensure they can get the full new state pension. Suzanne Bourne, a care expert at Mobilise, said, “If you start work at 21 and stop working at 51 to care for your partner, you will only receive a partial state pension when you turn 66. This could come as a huge shock and could have been avoided with the carer’s credit.”
Carer’s credit can be backdated to the start of the previous tax year, even if the person being cared for no longer has care needs or has passed away.
To apply, unpaid carers can download and send back the application form available on the government’s website. To get carer’s credit, you must be aged 16 or over, under state pension age (66), and looking after one or more people for at least 20 hours a week.
Carers urged to claim carer’s credit
The person you’re looking after must get one of several benefits, such as Disability Living Allowance or Personal Independence Payment. Voluntary contributions can also be made to fill NI gaps. Buying back missing years can be valuable, with the cost for one year of contributions at £824.20 in 2022/23, potentially adding around £275 per year to the state pension.
The DWP is also urging unpaid carers to check if they qualify for financial assistance through means-tested benefits like Universal Credit. Individuals dedicating 35 hours a week to unpaid care may be eligible for Carer’s Allowance or Carer Support Payment, which amounts to £81.90 per week or £327.60 every four weeks. Sir Stephen Timms, Minister for Social Security and Disabilities, acknowledged the vital role of unpaid carers, stating, “Unpaid carers play a vital role in supporting elderly or disabled relatives or friends.
It is right that we keep Carer’s Allowance under review to see if it is meeting its objectives and giving unpaid carers the help and support they need and deserve.”
The DWP encourages all eligible individuals to come forward and claim their entitlements. For more information, unpaid carers are advised to visit the official DWP website or contact their local Jobcentre Plus for personalized support.
