The Department for Work and Pensions (DWP) has confirmed that unpaid carers may be entitled to an extra £48.15 a week through Pension Credit, even if they cannot receive Carer’s Allowance because they already get their State Pension.
The clarification came in a written parliamentary response to Labour MP Toby Perkins, who asked the Secretary of State for Work and Pensions about action being taken to prevent unpaid carers losing out financially in retirement. Minister for Pensions Torsten Bell confirmed that existing arrangements could help carers protect their State Pension entitlement and access additional means-tested benefits.
What the minister said
Bell stated: "The Government is committed to ensuring unpaid carers do not lose out in retirement because of their caring responsibilities." He continued: "Carers can protect their State Pension entitlement through National Insurance credits, either automatically through Carer’s Allowance or through Carer’s Credit for eligible carers."
The minister also confirmed that carers could qualify for Pension Credit, Housing Benefit, Council Tax Support and other financial assistance, depending on their circumstances. He added: "Carers over State Pension age who cannot receive Carer’s Allowance due to overlapping benefit rules may still have an underlying entitlement, which can increase entitlement to Pension Credit through the carer addition."
How the carer addition works
Pension Credit includes an additional amount for people who provide care for another adult, currently worth £48.15 a week, equivalent to £2,503.80 over a full year. This is not a separate benefit or an automatic payment. It is an additional amount included when calculating entitlement to Pension Credit, meaning the amount someone actually receives depends on their financial circumstances.
People who receive Carer’s Allowance, or Carer Support Payment in Scotland, may qualify for the addition. However, pensioners who cannot receive either payment because their State Pension is higher than the carer benefit may still qualify through what is known as an underlying entitlement. For example, a pensioner who meets the eligibility conditions for Carer Support Payment but receives no payment because of overlapping benefit rules could still have their caring responsibilities recognised when their Pension Credit entitlement is assessed.
Pension Credit currently tops up weekly income to £238 for single pensioners and £363.25 for couples, although people with higher incomes may still qualify if they have additional needs or responsibilities. The carer addition can increase the income level used to calculate an eligible household's award.
Different rules in Scotland
Carer Support Payment has replaced Carer’s Allowance in Scotland and is administered by Social Security Scotland. The payment is currently worth £86.45 a week, although people receiving certain other benefits, including the State Pension, may not receive the full amount. Where a pensioner's State Pension is equal to or higher than Carer Support Payment, they may receive no payment from the Scottish benefit.
However, Social Security Scotland confirms that it can still be worthwhile applying because an award establishing underlying entitlement may increase eligibility for other financial support. More information is available on MYGOV.SCOT.
Protecting your future State Pension
People who provide unpaid care before reaching State Pension age may also be able to protect their National Insurance record. Carer’s Credit is available to eligible people aged 16 or over who are below State Pension age and provide care for at least 20 hours a week. It does not provide a cash payment. Instead, it helps fill gaps in a person's National Insurance record, which can affect their eventual State Pension entitlement.
Unlike Carer’s Allowance or Carer Support Payment, Carer’s Credit does not require someone to provide at least 35 hours of care each week. Eligibility generally depends on the person receiving care getting a qualifying disability benefit, although alternative evidence from a health or social care professional may be accepted in certain circumstances. Income, savings and investments do not affect eligibility for Carer’s Credit.
Pensioners who believe they may qualify for the carer addition can contact the Pension Service on 0800 99 1234 to ask for their Pension Credit entitlement to be checked.
