Unpaid Carers Could Get Up to £2,370 from the DWP – Are You Eligible?

Many pensioners who provide unpaid care for family members or friends may be missing out on crucial financial support, according to Carers UK. The charity is particularly concerned about low-income pensioners who are unpaid carers, as they risk struggling through the winter without access to benefits like Pension Credit and the Carer Addition top-up.

The bureaucratic complexity of the benefits system is making it difficult for these individuals to access the support they are entitled to, especially during a time when energy prices remain high and winter approaches.

Carers Facing Financial Hardship

Research made by Carers UK highlights that low-income pensioners serving as unpaid caregivers are at risk, particularly if they do not receive Pension Credit or the additional Carer Addition. Research indicates that these carers often incur significant expenses related to social care and travel, leading to financial strain.

• Poverty Statistics: Approximately 20% of pensioners who are unpaid carers live in poverty, compared to 13% of their non-caring peers.
• Currently, only 100,000 unpaid pensioner carers receive both Pension Credit and the Carer Addition, with many potentially missing out on these benefits.

Importance of Pension Credit and Carer Addition

The Carer Addition could provide pensioners with an additional £2,370 annually, making a critical difference to their financial stability. Emily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, stressed the urgency: “There's no time to lose… with the winter coming and fuel prices still high, they need every penny they can get.”

Holzhausen also highlighted the often confusing application process for pensioner carers. Pensioners must apply for Carer’s Allowance, even though they are likely to be told it won’t be paid.

However, this application can give them an “underlying entitlement,” which could increase their eligibility for Pension Credit and the Carer Addition. She also called for reforms, stating that the current system is overly complex and often prevents carers from accessing the help they need.

Complex Benefit System

The rules surrounding Carer’s Allowance and Pension Credit can be confusing. If a pensioner’s State Pension exceeds the Carer’s Allowance, they cannot receive the allowance directly. However, applying for it establishes their underlying entitlement, which can then enhance their Pension Credit eligibility.

This is particularly crucial as the Government tightens eligibility for Winter Fuel Payments. Only those on means-tested benefits, such as Pension Credit, will receive this additional winter support.

How to Apply and Deadlines

For pensioners, claiming Pension Credit can significantly increase their income, especially for those with low earnings. The Carer Addition can provide an even higher minimum amount in the Pension Credit calculation.

• To qualify for the Carer top-up, carers must apply for Carer's Allowance, which requires them to provide at least 35 hours of care weekly to someone with a qualifying illness or disability.
• Current regulations state that if a person's State Pension exceeds the Carer's Allowance, they cannot receive the latter. Nonetheless, applying is essential for establishing underlying entitlement.

Importance of Eligibility Checks

With the government tightening access to Winter Fuel Payments, verifying eligibility for additional support is more critical than ever. Only those receiving Pension Credit or other means-tested benefits will qualify for this assistance.

• To check your eligibility for Pension Credit, utilize the Government's Pension Credit Calculator or call the credit claim line at 0800 99 1234.
• The deadline to apply for Pension Credit to receive a Winter Fuel Payment this winter is 21st December 2024.