A little-noticed change to the state pension age is set to leave thousands of carers out of pocket.
Many could lose thousands of pounds as they are forced to wait longer before qualifying for key retirement benefits.
Around 26,000 unpaid carers across Britain stand to miss out on a combined £182million as the state pension age rises to 67 over the next two years, analysis from Carers UK shows,
The charity estimates that those affected could face an average shortfall of about £7,011 during the extra year they must wait before accessing pension-age support.
The state pension age marks the earliest point people can claim their state pension as well as other Department for Work and Pensions benefits intended for those of retirement age.
For carers unable to work due to their responsibilities, this shift means an extended period before qualifying for more generous pension-age support.
Those facing this extended wait will miss out on roughly £134.82 each week compared to unpaid carers who have already reached state pension age.
The financial disparity stems from the significant difference between working-age and pension-age support packages.
Thousands of Britons set to miss out on £7,011 due to state pension ‘change’
|
GETTYCarers UK’s analysis revealed that prior to reaching state pension age, unpaid carers may qualify for Carer’s Allowance combined with the Universal Credit Carer Element, totalling approximately £136.68 weekly.
However, upon reaching pension age, they become eligible for Pension Credit Carer Addition, which amounts to around £273.50 per week.
This near-doubling of weekly support explains why the delay proves so costly for those caught in the transition period.
The charity has warned that women will bear the brunt of these changes, comprising 63 per cent of Carer’s Allowance recipients between the ages of 60 and 66.
The state pension age marks the earliest point people can claim their state pension as well as other Department for Work and Pensions benefits intended for those of retirement age
|
PAEmily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, said: “Thousands of unpaid carers provide essential support to family and friends long before reaching pension age.
“As one of the most under-pensioned groups in the UK, many have little choice but to care due to limited alternative support.
“We must ensure carers are properly supported as they approach retirement, particularly given the new rise in the State Pension age. This change means that those nearing retirement age will lose out significantly, especially women, who make up the majority of those affected.”
Ms Holzhausen added: “It is vital that Carer’s Allowance is reviewed and strengthened, including enhanced support in the years before reaching pension age, so that those who dedicate their time to look after others are not left in poverty.”
Those born between 6 April 1960 and 5 March 1961 will be directly affected by the phased increase, reaching state pension age sometime after turning 66 but before their 67th birthday. Anyone born after 5 March 1961 will qualify at 67.
Carers UK is advocating for enhanced payments at least two years before retirement to mitigate poverty in later life.
The Government has defended periodic pension age reviews, citing life expectancy assessments and other factors.