UK people are encouraged to take advantage of a state pension boost. This could increase their retirement income by £6,000, about £328 more per year. This is especially important for those who care for loved ones without claiming Carer’s Allowance.
Contents
- Boost Your State Pension by £6,000
- State Pension Boost for Carers
- Increase in Carer’s Credits Claims
- Eligibility for Carer’s Credits
- How to Claim Carer’s Credits
- Qualification Criteria
- Increase in Claims
- Impact on State Pension
- Historical Data on Claims
- Unpaid Carers in England
- Expert Opinion
- Government’s Role
- Awareness and Encouragement
- Related posts:
Boost Your State Pension by £6,000
A recent report by Quilter, a wealth management firm, showed a big increase in people claiming carer’s credits in the 2023/24 tax year. These credits help people who care for someone without Carer’s Allowance build up their state pension.
State Pension Boost for Carers
Households are being encouraged to take advantage of a state pension boost that could significantly increase their retirement income. This boost could add up to £6,000 to their typical retirement income, translating to an additional £328 per year. This increase particularly benefits those with gaps in their National Insurance (NI) record. Individuals can enhance their state pension by filling these gaps through voluntary contributions.
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Increase in Carer’s Credits Claims
A recent report revealed a substantial 55% increase in the number of people claiming carer’s credits in the 2023/24 tax year compared to the previous four years. Carer’s credits are essential for those who provide care for a loved one but do not claim Carer’s Allowance. These credits help build up their state pension by filling gaps in their NI record.
Eligibility for Carer’s Credits
To be eligible for carer’s credits, individuals must meet the following criteria:
- Age: They must be aged 16 or over and under State Pension age.
- Caring Hours: They must look after one or more people for at least 20 hours a week.
- Benefits Received by the Person Cared For: The person being cared for must receive one of the following benefits:
- Disability Living Allowance (care component at the middle or highest rate)
- Attendance Allowance
- Constant Attendance Allowance
- Personal Independence Payment (daily living part)
- Armed Forces Independence Payment
- Child Disability Payment (care component at the middle or highest rate)
- Adult Disability Payment (daily living component at the standard or enhanced rate)
Suppose the person being cared for does not receive one of these benefits. In that case, the carer may still be eligible for carer’s credits by filling in the ‘Care Certificate’ part of the application form and getting it signed by a health or social care professional.
How to Claim Carer’s Credits
To claim carer’s credits, individuals need to complete an application form available on the GOV.UK website. The form requires details about the carer and the person being cared for, including the benefits they receive. Once submitted, the credits will be added to the carer’s NI record, helping to build up their state pension.
By taking advantage of these opportunities, carers can ensure they do not miss out on valuable state pension entitlements, ultimately securing a better financial future for themselves.
Qualification Criteria
To qualify for carer’s credits, you must:
- Be between 16 and 66 years old
- Care for at least one person for at least 20 hours a week
Increase in Claims
- In the 2023/24 tax year, 9,040 people claimed the credit, compared to an average of 5,836 people per year since the 2019/20 tax year.
- Over the last five tax years, 32,384 people have taken advantage of carer’s credits.
Impact on State Pension
Missing an annual credit could reduce your state pension. Claiming the credit could boost your state pension by £328, resulting in an overall increase of £6,000.
Historical Data on Claims
Year |
Number of Claims |
|---|---|
2019 |
6,274 |
2020 |
5,338 |
2021 |
5,599 |
2022 |
Recovery in uptake |
2023 |
9,040 |
Unpaid Carers in England
As of March 2021, the Office for National Statistics (ONS) reported that there were approximately 4.7 million unpaid carers in England. Unpaid carers are crucial in providing care and support to their loved ones, and their contributions are invaluable to society.
Expert Opinion
Jon Greer, head of retirement policy at Quilter, said not applying for these credits can have a “devastating impact” on someone’s state pension. He stressed the importance of filling gaps in the National Insurance record to get the full state pension.
Government’s Role
The new Labour Government needs to address the social care crisis. The UK’s social care system is struggling, and unpaid carers are filling the gap. It’s only fair that they receive at least a pension credit in return.
Awareness and Encouragement
More people are becoming aware of the importance of filling gaps in their National Insurance record, prompting more carers to apply for the credit. However, many eligible individuals may still not have applied. Anyone in a caring role must check their eligibility and apply.
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