Older carers missing out on vital Pension Credit, charities warn

Tens of thousands of older carers are being denied critical financial help due to an 'arcane' and baffling benefits system that campaigners say is pushing many into poverty.

New figures from Age UK suggest as many as 65,000 low-income carers of state pension age are missing out on Pension Credit. The benefit that can be worth thousands of pounds and opens the door to other essential support such as the Winter Fuel Payment.

Many are unaware that they may be entitled to this top-up benefit—known as the Carer Addition—which can be worth up to £2,412.80 per year.

Campaigners blame what they say is a needlessly complex application process, which requires pensioners to apply for Carer’s Allowance — even if they won’t receive it — just to qualify for the Carer Addition within Pension Credit.

“There are 1.3 million unpaid carers aged 65 and over in the UK,” said Age UK, “and a significant proportion are struggling to make ends meet.”

A survey of older carers carried out by Carers UK and backed by the abrdn Financial Fairness Trust found three quarters (75%) didn’t realise that applying for Carer’s Allowance could increase their chances of receiving Pension Credit—even if they weren’t eligible for a payment.

“It’s not right that older carers, often run off of their feet at a time of life when they should have some space to put them up, have a bewildering maze to navigate,” said Vivienne Jackson, Programme Manager at abrdn Financial Fairness Trust.

“The system of benefits eligibility for older carers is more arcane than a cryptic crossword.”

Helen Walker, chief executive of 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, added: "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."

According to the Carers UK survey, nearly half (48%) of older carers said they feel anxious or stressed when thinking about their finances, and 40% wanted clearer information on eligibility.

Currently, if an unpaid carer’s State Pension is more than Carer’s Allowance, they receive no allowance payment—but must still apply to prove an “underlying entitlement” in order to boost their Pension Credit.

Carers UK is now urging the Government to:

* Simplify the Pension Credit application process for carers

* Increase the Carer Addition by £36.60 per week, which could lift 20,000 older carers out of deep poverty

* Introduce a specific payment that recognises the contribution of older carers

With pressure mounting and winter looming once again, campaigners insist that urgent reform is needed to prevent vulnerable older carers from being left out in the cold.