Thousands of unpaid carers could be missing out on valuable credits that would help to boost their state pension.
Figures from the Department for Work and Pensions (DWP) show 40,673 carers have claimed the credits since 2010, averaging less than 4,000 per year. The number of eligible carers is estimated at 200,000.
Carer’s credit fills up gaps in your state pension record. Claiming for the credit, even while you are not making any contributions because of your caring role, helps towards your state pension.
The data, obtained by a Freedom of Information request submitted by the wealth manager Quilter, also shows the number of carers claiming the credits dropped by a fifth last year, from 6,489 in 2019 to 5,209. This is despite the increasing number of people who became unpaid carers during the pandemic. Figures released for the annual campaign Carers Week last year showed the number of unpaid carers is estimated to have increased by 4.5 million in 2020, to 13.6 million.
You might be eligible for the credit if you are 16 or over, you do not qualify for carer’s allowance, you are not yet receiving your state pension and you spend at least 20 hours a week caring for someone. The person you care for will also need to receive a benefit because of their illness or disability, such as the disability living allowance or personal independence payment.
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According to Quilter, each annual credit missed could cost you about £260 a year in retirement, or £5,200 over the course of 20 years.
Olivia Kennedy, a financial planner at Quilter, said: “In this unprecedented year it is inevitable that we will have seen a dramatic increase in the already sizeable unpaid carer population.
“These people sometimes don’t even recognise themselves as carers or the extent of the sacrifice they are making. Thinking of their own long-term financial wellbeing is crucial and the state pension is a big part of that, particularly as it’s money they rightfully deserve.”
The DWP said that while not everyone who could claim these credits did, it did not necessarily mean they were missing out. A spokesperson said: “There are many ways by which people can build their National Insurance records over their working lifetime and therefore some may not need them.”
Those eligible can claim by downloading and posting back the application form from the government website.
