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.

As well as a lack of knowledge about entitlements, a complex and confusing application process for an extra payment for unpaid carers is stopping low-income pensioners from claiming extra financial support they are entitled to. This top up to Pension Credit, Carer Addition, could be worth up to £2,412.80 extra per year for an older carer.

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.

There are 1.3 million unpaid carers aged 65 and over in the UK and a significant proportion are struggling to make ends meet. 1 in 5 carers of state pension age live in poverty.

A new 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.

To receive the carer top-up, called Carer Addition, to Pension Credit, 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 Carers Addition is factored into the Pension Credit calculation.

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.

Carers receiving Carer’s Allowance often find that it is no longer paid when they then reach State Pension age as the State Pension, if higher, is paid instead. This makes carers feel invisible and frustrated even though they are still caring.

Carers UK is calling for:

A simplification of the application process for carers within Pension Credit
Boosting the level of the carer top up, Carer Addition by £36.60 which would lift 20,000 older carers out of deep poverty at a cost of £300 million a year.
A payment which recognises older carers.
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.”

Caroline Abrahams, Charity Director at Age UK said:

“The extra money an unpaid older carer typically receives from successfully claiming Pension Credit makes a big difference to their finances and quality of life, so it is heartbreaking that so many are missing out because they are unaware of their potential entitlement.

“In the shorter term the Government should work with other organisations, including Carers UK and Age UK, to increase public awareness of Pension Credit and support older people to claim it. Longer term the system should move towards proactively identifying the older people most likely to be eligible, without they themselves needing to submit a claim.”