Thousands of carers could be missing out on £328 a year – check if you could benefit
THOUSANDS of people may be missing out on up to £328 a year in retirement because they’ve failed to claim credits, The Sun can reveal.
Shocking new figures show vital credits that boost your state pension in retirement are potentially hugely under-claimed, with experts saying thousands may be at risk of losing out financially as a result.
People who take time out of work to care for relatives can claim credits, known as carer’s credits, to help boost their state pension in retirement.
The credits fill in gaps in your National Insurance (NI) record so your state pension entitlement isn’t affected by taking time out of work.
Last year, there was a 55% increase in the number of people who claimed carer’s credits compared to over the previous four years, a freedom of information (FOI) request by Quilter, shared exclusively with The Sun, revealed.
The sudden jump comes as the Office for National Statistics (ONS) estimates there are around 4.7million unpaid carers in England, plus around 310,000 in Wales.
And there are currently approximately six million people claiming Disability Living Allowance, Attendance Allowance or Personal Independence Payment – just some of the benefits that the person who is being looked after must get for the carer to be eligible
to get the credit.
Yet, barely 10,000 people claimed the credits last year even after the sudden jump in claims.
In the 2023/2024 tax year, 9,040 people claimed the credit compared to average of 5,836 people per year since 2019/20, the FOI by Quilter found.
Just 32,384 people over the last five tax years have taken advantage of the credit.
During the pandemic, there was a significant drop in the number of people claiming carer’s credits, the FOI also revealed – falling to just 5,338 people in 2022 from 6,274 in 2019.
Therefore, Quilter said, there could still be “thousands” of people who are eligible for these credits but are not claiming.
Each annual credit missed could cost you 1/35th of the value of your state pension, according to Quilter.
So, it said by claiming the credit, you could potentially increase your state pension by £328 annually – adding up to over £6,000 over the course of a typical retirement.
Jon Greer, head of retirement policy at wealth management firm Quilter, said: “Providing care for a family member can significantly impact your financial situation, especially for young carers.
“However, it can also have a devastating impact on your future
state pension entitlement too.
“Encouragingly, more individuals are now taking advantage of
carer’s credits to ensure they don’t end up with gaps in their NI record and don’t receive the full state pension as a result.
“But while the increase in claims is positive, there are likely still
thousands of eligible individuals who haven’t applied.
“It’s crucial for anyone who performs a caring role to check their eligibility and apply.”
What are carer’s credits and how do they boost retirement income?
Carer’s credits are effectively NI credits that help fill in gaps in your NI record.
They are different to the carer’s allowance, which is for those who care for someone on certain benefits for at least 35 hours a week.
Those who get carer’s allowance will automatically get NI credits.
To get the full new state pension, you must have paid at least 30 years’ worth of NI during your working life.
Having gaps in your record can mean you are paid less, leaving you worse off in retirement.
Carer’s credits mean that those who take time out of work to care for someone with a disability or illness are not penalised later in life.
Consumer expert Martin Lewis has previously warned that you could miss out on as much as tens of thousands of pounds over a long retirement by failing to claim the credits.
How to claim carer's credit
CARER'S credits are available if you're caring for someone for at least 20 hours a week.
You have to be aged 16 or over and under state pension age, and the person you’re caring for must be on certain benefits – see Gov.uk for the full list.
Credits aren’t paid in cash but instead they’re a NI credit that helps with gaps in your national insurance record.
This is important because how much you eventually get – if anything – from the state pension is based on your NI record.
To apply, download and send back the carer’s credit claim form on Gov.uk.
You don’t need to apply if you get carer’s allowance or child benefit for a child under 12 as you’ll automatically get credits, and if you are a foster carer you should apply for NI credits instead.