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Brits claiming carer’s credit grows by 55% but millions still miss out

Brits claiming carer’s credit grows by 55% but millions still miss out
Matt Browning
Written By:
Posted:
29/07/2024
Updated:
29/07/2024

The number of Brits claiming carer’s credits during 2023/24 rose by 55%, according to a wealth management company.

In the last tax year, 9,040 people claimed the allowance compared to 6,133 in the year before. Over the last five years, the total number of recipients of the benefit reached 32,384.

The payment is open to people who spend at least 35 hours a week caring for someone with an illness or disability who also receives benefits.

It pays £81.90 a week if you earn less than £151 per week after tax, are a UK resident and are not in full-time education.

However, the number of those claiming could be in the millions, according to the Office for National Statistics (ONS) data.

Around 4.7 million eligible carers missed out on the payment in England on the last Census Day in 2021 and 310,000 did so in Wales.

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Further, there are around six million people who claim allowances Disability Living Allowance, Attendance Allowance or a Personal Independence Payment. Those schemes are a few of the benefits you need to receive for your carer to receive the credit.

So, millions more could be losing out on vital financial support when they are entitled to do so.

In May, a select committee called on the Department of Work and Pensions (DWP) to urgently improve how it monitors and calculates carer’s allowance.

As it stands, if a carer earns a penny more than the weekly limit of £151, they do not stand a chance of claiming any of the credit.

Another issue raised by the Works and Pensions Committee was overpayments, which can lead to hefty debts for carers who are unaware of the situation.

‘Labour Government must tackle social care crisis’

Jon Greer, head of retirement policy at Quilter, said: “Providing care for a family member can significantly impact your financial situation, especially for young carers. However, it can also have a devastating impact on your future state pension entitlement.

“Encouragingly, more individuals are now taking advantage of carer’s credits to ensure they don’t end up with gaps in their National Insurance record and don’t receive the full state pension as a result.

“The new Labour Government with its large majority must tackle the social care crisis. The UK’s social care system is crumbling, and Britain’s unpaid carers pick up the slack, so it is only fair that they receive at least a pension credit in return.”

Greer added: “There has been a growing awareness of the importance of filling in gaps in your National Insurance record in order to receive the full state pension, which may have prompted more carers to apply for the credit.

“While the increase in claims is positive, there are likely still thousands of eligible individuals who haven’t applied. It’s crucial for anyone who performs a caring role to check their eligibility and apply.”