New figures from Age UK estimate that 65,000 low-income older carers looking after disabled, older and ill relatives and friends could be missing out on Pension Credit and potentially other key entitlements.
Carer Addition – a top-up of Pension Credit – could be worth up to £2,412.80 extra per year for an older carer.
‘Complex and confusing’
Carers UK criticised the application process for entitlements for carers, describing it as “complex and confusing”.
To receive Carer Addition, unpaid carers must first apply for or be entitled to Carer’s Allowance. If someone’s state pension is more than Carer’s Allowance, they are not paid Carer’s Allowance. However, carers still need to apply for Carer’s Allowance in order to prove they have an “underlying entitlement” to the benefit – even if they won’t get paid Carer’s Allowance itself.
Proving they have an underlying entitlement would increase their chances of being eligible for Pension Credit and to apply successfully. Unpaid carers may also be eligible for a higher amount because Carer Addition is factored into the Pension Credit calculation.
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A survey of 344 older carers carried out by Carers UK for a report supported by Abrdn Financial Fairness Trust found that three-quarters (75%) didn’t know that submitting a claim for Carer’s Allowance makes it more likely carers will be eligible for Pension Credit, and more likely to receive a higher amount.
Nearly half (48%) of older carers answering the Carers UK survey said they feel anxious or stressed when thinking about their financial situation, and 40% said they would like clearer advice and information about carers’ eligibility for Pension Credit.
One in five carers living in poverty
Carers receiving Carer’s Allowance often find that it is no longer paid when they then reach the state pension age as the state pension, if higher, is paid instead – even though they are still caring. This makes carers feel invisible and frustrated.
Carers UK pointed out that it is especially concerning that carers are not receiving the support they are entitled to, as Pension Credit is a gateway to additional help such as the Winter Fuel Payment.
According to Carers UK, there are 1.3 million unpaid carers aged 65 and over in the UK and a significant proportion are struggling to make ends meet. Previous research by the charity found that one in five carers of state pension age live in poverty.
Calls for a simpler system
Carers UK is calling for a simplification of the application process for carers within Pension Credit. It also wants a boost to the level of Carer Addition by £36.60, which would lift 20,000 older carers out of deep poverty at a cost of £300m per year.
Helen Walker, chief executive at Carers UK, said: “Older carers are already having to provide significant amounts of care, are often in poor health themselves and are frequently exhausted from the amount of administration they have to deal with. Having such a complex, frustrating and baffling system is incredibly counter-productive and those on the lowest incomes can least afford to miss out.
“With rising costs, we should be doing everything we can to ensure that unpaid carers receive the right entitlements and benefits. Following the tightening of Winter Fuel Payments criteria for those who are in receipt of Pension Credit and other key benefits, a simple claims process becomes even more important. The Government needs to take this step before next winter so that as many carers as possible on low incomes get vital support.
“We also need further measures to ensure that older unpaid carers are not only pulled out of poverty, but better valued and supported.”
Morgan Vine, director of policy and influencing at Independent Age, said: “The findings in Carers UK’s latest report on Pension Credit and Carer’s Allowance sadly come as no surprise. Our own recent research highlighted how the complexity of the social security system is a major barrier to older people accessing the financial support they are entitled to. It’s deeply worrying that so many older people may be missing out on vital income due to difficulties with the process.
“We support Carers UK’s call for a simplified application process for carers applying for Pension Credit, and we also urge the UK Government to develop a clear take-up strategy for all financial entitlements. This strategy should include firm targets and a genuine commitment to increasing uptake.
“The Department for Work and Pensions (DWP) and local authorities must urgently review how application forms can be shortened and simplified across all available pensioner financial entitlements. We also want to see assessments of where automation or semi-automation could ease access and create a deeper understanding of current obstacles, and how to combat them.”
