The state pension age is the earliest point at which people can begin receiving their state pension and other pension-age benefits from the Department for Work and Pensions. For most, this age has been rising gradually, with the next increase to 67 scheduled to take place between 2026 and 2028. While the government has defended these changes as necessary adjustments based on life expectancy, the transition period is creating a financial trap for some of the country’s most vulnerable unpaid carers.
Analysis conducted by the charity Carers UK has highlighted a significant disparity in the support available to carers before and after they reach state pension age. According to the charity’s findings, before reaching that milestone, unpaid carers may be entitled to Carer’s Allowance and the Universal Credit Carer Element, which together total approximately £136.68 per week. However, once they cross the threshold into pension age, their eligibility shifts, and they could instead receive the Pension Credit Carer Addition, worth around £273.50 per week.
A Significant Weekly Shortfall during the Waiting Period
The difference between these two rates means that carers affected by the age increase will experience a shortfall of roughly £134.82 per week during the extra twelve months they must wait. Carers UK estimates this could create a total individual shortfall of approximately £7,011 for each of the estimated 26,000 carers who are unable to work because of their caring responsibilities. The overall combined loss for this group is projected to reach £182 million.
The timing of the state pension age increase means that those born between 6 April 1960 and 5 March 1961 will be directly impacted. For these individuals, their state pension age will fall sometime after their 66th birthday but before they turn 67, with the exact date depending on their birth date. Everyone born after 5 March 1961 will reach state pension age when they turn 67. Looking further ahead, those born after 6 April 1978 are expected to face an even higher state pension age of 68, which is scheduled to rise again around 2044.
Emily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, emphasised the long-term implications. According to Holzhausen, thousands of unpaid carers provide essential support to family and friends long before reaching pension age, and as one of the most under-pensioned groups in the UK, many have little choice but to care due to limited alternative support.
Disproportionate Impact on Women and Calls for Reform
The burden of this financial shortfall is not being shared equally. The charity’s analysis indicates that women make up 63 per cent of those aged between 60 and 66 who are currently receiving Carer’s Allowance. This means the majority of the 26,000 carers facing the extended wait and the consequent loss of income will be women, further widening the gender disparity in retirement income.
Holzhausen stressed the importance of ensuring carers are properly supported as they approach retirement, particularly given the rise in the state pension age. She noted that those nearing retirement age will lose out significantly, with women bearing the brunt of the impact.
In response to these findings, Carers UK is calling for a formal review of Carer’s Allowance to ensure it meets the actual requirements of those providing care. The charity is also suggesting that carers should receive an enhanced payment for at least two years before they reach retirement age, a measure designed to reduce the impact of poverty in later life for those who dedicate their time to looking after others.
