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Unpaid carers urged to check benefits eligibility

Unpaid carers urged to check benefits eligibility
Emma Lunn
Written By:
Posted:
04/10/2024
Updated:
15/10/2024

Pensioners providing unpaid care for a family member or friend could be missing out on vital financial support.

Entitlement to ‘Carer Addition’ could mean more pensioners getting Pension Credit and the Winter Fuel Payment, and possibly housing benefit and council tax support, worth up to an extra £2,370 per year.

Charity Carers UK is encouraging pensioners to check their eligibility for the additional support.

For those who have reached the state pension age, claiming Pension Credit allows them to top up their income if it is low to a guaranteed minimum amount set by the Government.

What is Carer Addition?

Unpaid carers may be eligible for a higher minimum amount because an additional amount of money, called the Carer Addition, is factored into the Pension Credit calculation.

To receive the carer top-up to Pension Credit, carers must first apply for Carer’s Allowance. To claim this benefit, they must be spending at least 35 hours per week caring for someone with an illness or disability receiving a disability benefit such as Attendance Allowance or Personal Independence Payment.

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Current benefit rules state that if someone’s state pension is more than Carer’s Allowance, they are not entitled to be 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, which would increase their chances of being eligible for Pension Credit and would increase the amount of a Pension Credit award.

With the Government tightening entitlement to the Winter Fuel Payment, checking eligibility for additional support is especially important, as only those receiving Pension Credit or other means-tested benefits will receive this help with energy bills.

Extra costs

Carers UK is concerned that carers often face high social care costs and extra costs, such as travel costs when accompanying the person they care for to appointments. Research shows that 20% of carers aged 65 and over live in poverty, compared to 13% of non-carers.

Emily Holzhausen, director of policy and public affairs, at Carers UK, said: “There’s no time to lose to make sure that carers apply for Pension Credit, when we know that so many are struggling in poverty in retirement. With the winter coming, and fuel prices still high, they need every penny they can get.

“For pensioners who are unpaid carers, understanding your entitlements is complicated. We’re worried that many more carers will be missing out, but we just don’t know how many.

“Pensioners who are carers have to apply for Carer’s Allowance. They are very likely to be told it won’t be paid, but it will give them underlying entitlement that then potentially entitles them to Pension Credit and the top-up, Carer Addition.

“This shines a light on the urgent need for reform of the system when applying for benefits. We’ve seen the devastating impact of Carer’s Allowance overpayments due to poor systems for working-age carers. The mind-boggling complexity of benefits for older carers prevents them from getting the help they are entitled to and could be drastically simplified by Government.”

How to claim Pension Credit

To check your eligibility for Pension Credit, use the Government’s Pension Credit Calculator or call the credit claim line on 0800 99 1234.

The latest that someone can apply for Pension Credit and still receive a Winter Fuel Payment this winter is 21 December 2024. This would depend on Pension Credit being backdated for three months.

People can still claim Pension Credit after this date, but they won’t get this year’s Winter Fuel Payment.