New analysis reveals a staggering financial support gap, with an estimated 500,000 unpaid carers across England and Wales failing to claim a benefit worth £83.30 every week.
This collective oversight means more than £2.4 billion in Carer's Allowance goes unclaimed annually, despite carers contributing an immense £445 million to the economy each day—totalling £162 billion per year.
What is Carer's Allowance and who qualifies?
Carer's Allowance is a Department for Work and Pensions (DWP) payment designed for individuals who provide at least 35 hours of care per week for someone with a severe illness or disability.
Experts from Policy in Practice, who uncovered the scale of unclaimed support, emphasise that claiming this benefit not only provides immediate financial help but can also unlock other forms of support and protect your State Pension.
As of August last year, 1.4 million people were successfully claiming the allowance, with 77% being of working age and 23% over State Pension age.
Understanding the eligibility criteria
To qualify for Carer's Allowance, several conditions must be met. The carer must be aged 16 or over and spend a minimum of 35 hours per week providing care. This care can include a wide range of support, from helping with washing and cooking to taking someone to medical appointments and assisting with household tasks like managing bills.
Additionally, the person being cared for must already be receiving one of several specific benefits, including:
- Personal Independence Payment (daily living component)
- Disability Living Allowance (middle or highest care rate)
- Attendance Allowance
- Armed Forces Independence Payment
- Adult Disability Payment (daily living component)
Other requirements state that claimants must have been in England, Scotland or Wales for at least two of the last three years, cannot be in full-time education, and must have weekly earnings of £196 or less after tax, National Insurance, and expenses.
How claiming protects your financial future
Beyond the immediate weekly payment, one of the most valuable aspects of Carer's Allowance is the automatic National Insurance credits awarded for each week you receive the benefit. These credits are crucial for protecting your future State Pension entitlement.
Claiming Carer's Allowance can also open doors to additional support, including:
- Council Tax Reduction
- Support from your local council
- Universal Credit for those on low incomes
- Pension Credit for people over working age
- Grants and bursaries for training courses
For those receiving State Pension, it's important to note that you cannot get the full amount of both Carer's Allowance and your State Pension simultaneously. If your pension is £83.30 or more per week, you won't receive a Carer's Allowance payment, though your Pension Credit payments may increase instead.
The DWP allows claimants to backdate their claims by up to three months, providing potential for significant lump-sum payments for those who have been eligible but unaware of the support available.
Policy in Practice warns that Carer's Allowance is just one of many benefits being underclaimed, with people missing out on a total of more than £24 billion in income-related benefits and discounts, often due to perceived complexity, lack of awareness, or stigma surrounding benefit claims.
