29 July 2024
A Freedom of Information request by Quilter, the financial adviser and wealth manager, reveals that there was a 55% increase in the number of people who claimed carer’s credits in the 2023/24 tax year, compared to the average over the previous four years.
If you are caring for someone and do not get a carer’s allowance, you may still be eligible for carer’s credits that count towards your state pension entitlement. You must be between 16 and state pension age and look after one or more people for at least 20 hours a week.
In 2023/24, 9,040 people claimed the credit compared to average of 5,836 people per year since 2019/20. The new data reveals that 32,384 people over the last five tax years have taken advantage of the credit.
Number of claims for Carer’s Credits for the last 5 tax years
|
|
2019-20 |
2020-21 |
2021-22 |
2022-23 |
2023-24 |
|
April |
575 |
343 |
541 |
464 |
891 |
|
May |
457 |
387 |
409 |
434 |
1295 |
|
June |
470 |
383 |
462 |
339 |
1286 |
|
July |
537 |
408 |
503 |
453 |
1209 |
|
August |
620 |
351 |
367 |
503 |
672 |
|
September |
536 |
409 |
414 |
419 |
456 |
|
October |
381 |
485 |
425 |
516 |
566 |
|
November |
710 |
443 |
437 |
600 |
558 |
|
December |
338 |
369 |
328 |
601 |
322 |
|
January |
515 |
479 |
463 |
740 |
603 |
|
February |
591 |
568 |
560 |
456 |
595 |
|
March |
544 |
713 |
690 |
608 |
587 |
|
Total |
6274 |
5338 |
5599 |
6133 |
9040 |
Each annual credit missed could cost you 1/35th of the value of your state pension – therefore claiming the credit could potentially increase someone’s state pension by £328 annually adding up to over £6,000 over the course of a typical retirement.
The number of claims last tax year was 44% higher than 2019, which was the previous highest when 6,274 people claimed carer’s credits.
The data also shows that there was a significant drop off in the number of claims made during the years of the pandemic which only started to recover in 2022.
In 2020 and 2021, 5,338 and 5,599 people respectively applied for carer’s credits compared to 6274 in 2019.
Anyone unsure whether they qualify can apply using the downloadable form from the DWP website.
According to the ONS, on Census Day 2021 (21 March 2021) there were approximately 4.7 million unpaid carers in England and approximately 310,000 unpaid carers in Wales.
Similarly, there are currently approximately six million people claiming Disability Living Allowance, Attendance Allowance or Personal Independence Payment which are 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. Therefore, there could still be many people who are eligible for these credits but are not claiming.
Jon Greer, head of retirement policy at Quilter says:
"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 National Insurance record and don’t receive the full state pension as a result.
“The new Labour government with its large majority must tackle the social care crisis. The UK’s social care system is crumbling, and Britain’s unpaid carers pick up the slack, so it is only fair that they receive at least a pension credit in return.
“There has been a growing awareness of the importance of filling in gaps in your National Insurance record in order to receive the full state pension, which may have prompted more carers to apply for the credit. 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."
