State pension boost: Thousands of carers missing on vital credits to boost payment | Personal Finance | Finance


Only 4,759 people claimed the all-important Carer’s Credit in 2021, according to a Freedom of Information (FoI) request issued by Quilter. In their analysis of these figures, the financial firm determined that the number of Carer’s Credits claimed by the end of December will be 5,568. This is only slightly ahead of last year’s figure of 5,221, however it is 13 percent lower than pre-Covid figures registered for the benefit allowance.

To meet the criteria for these credits, claimants must be between the ages 16 and state pension age and care for one or more people for at least 20 hours a week.

Every single credit missed could result in 1/35th of the claimant’s state pension value being diminished.

This comes to around £260 per year or £5,200 over the duration of a 20-year retirement period.


Olivia Kennedy, a Financial Planner at Quilter, emphasised the unique role carers play in the UK’s wider economy as to why they should be adequately supported by the Government.

Ms Kennedy said: “Carers play an essential role in propping up this country and it is only right that they at the very least receive a pension credit in return.

“But, despite the pandemic increasing the amount of people requiring care, the number of people applying for the credit continues to lag pre-pandemic levels.

“Unfortunately, many people fail to see themselves as carers and fail to apply for Carer’s Credit.

“Failing to do so can have a disastrous impact on someone’s financial wellbeing as many people begin being a carer later on in life and might need the credits to get the full state pension.”

Specifically, the financial expert highlighted the potential impact of the recently introduced social care cap on carers.

This cap has been introduced as part of the Government’s Health and Social Care Levy to help fund the country’s struggling social care sector.

She added: “The Government recently finally set out its long-awaited social care plan, which applies a £86,000 cap on care costs.

“However, the detail revealed that some lower income households will now need to meet almost all of that £86,000.

“Many people will try to prevent the need to dip into family savings by caring for loved ones themselves and it’s imperative that these people still look after their own financial wellbeing and claim these important credits.”

In light of this, anyone eligible to receive Carer’s Credit is encouraged to apply as soon as possible.

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