Carer's Credit worth £7,000 in retirement sees claims rise 1,500% since 2010

A Freedom of Information request by Quilter, the financial adviser and wealth manager, reveals that applications for Carer's Credit have increased dramatically over the past 15 years, rising from just 420 in 2010/11 to 6,770 in 2024/25. The data also shows that more than 35,000 carers have successfully secured the credit since 2010/11, helping to safeguard their future State Pension entitlement.

Carer's Credit is a National Insurance credit that helps people who provide unpaid care maintain their State Pension record while they are out of the workforce or working reduced hours. It is available to those who care for someone for at least 20 hours a week and who are not receiving Carer's Allowance.

The figures provided by the Department for Work and Pensions show a sustained increase in applications over the past decade, with claims reaching a record high of 7,110 in 2023/24 before easing slightly to 6,770 in 2024/25. Awards have also risen significantly, from 390 in 2010/11 to 5,780 in 2024/25.

The importance of the scheme is likely to grow further as caring responsibilities become more widespread. New research from Carers Trust projects that the number of people in need of care is set to grow from 8.4 million in 2025 to 10.3 million by 2050, driving a greater number of people away from work and towards caring. The research also predicts 120,000 more carers will be out of work by 2035, and 1.6 million carers will be in poverty by 2035, rising to 2 million by 2050.

Against that backdrop, measures such as Carer's Credit play an increasingly important role in helping carers protect their National Insurance record and future State Pension entitlement.

In total, around 35,000 applications have been awarded since 2010/11, with more than 30,000 successful applications occurring in the last six years alone.

Each year of Carer's Credit claimed is worth 1/35th of the full new State Pension. Based on the current full new State Pension of £241.30 per week, a single qualifying year is now worth around £359 a year in retirement income. Over a typical 20-year retirement, that could amount to more than £7,000 of additional State Pension payments.

Despite growing awareness, take-up appears low compared with the number of people potentially eligible. Census data has previously shown there are around five million unpaid carers across England and Wales, suggesting many people may still be missing out on valuable National Insurance credits that could improve their retirement income.

The FOI data also highlights the importance of claiming promptly. For unsuccessful mandatory reconsideration requests where the original decision was upheld between August 2024 and August 2026, the most common reason recorded by the DWP was that the claim had not been made within the required time limit. Around 170 unsuccessful reconsiderations were attributed to late claims, while virtually no other reasons featured in significant numbers.

Carer's Credit can generally be backdated to cover periods in the previous tax year, but carers who wait too long before checking their eligibility may miss the opportunity to secure National Insurance credits for earlier years. As a result, it is important that anyone providing regular care investigates their entitlement as soon as possible rather than assuming they can claim indefinitely.

Jon Greer, head of retirement policy at Quilter, said:

Providing care for a loved one often means putting parts of your own life on hold. That can include reducing your working hours, stepping away from employment entirely or putting your own financial plans on the back burner while supporting someone who depends on you.

"While most carers accept those sacrifices without a second thought, the impact on their future finances can easily be overlooked. Time spent out of the workforce can create gaps in a person's National Insurance record and, if left unchecked, those gaps could ultimately reduce the amount of State Pension they receive in retirement. Carer's Credit exists to help ensure people are not financially disadvantaged simply because they have taken on caring responsibilities.

"The steady rise in claims is encouraging and suggests awareness of the credit is growing. However, when compared with the millions of unpaid carers across the UK, the number of people applying remains relatively small. That indicates there are still many carers who may be missing out on support they are entitled to and potentially losing out on valuable State Pension entitlement as a result.

"Unpaid carers provide an enormous service to society and help fill gaps in an already stretched social care system. Carer's Credit is one small but important way of recognising that contribution and ensuring people do not suffer a lasting financial detriment as a result of caring for others."

Ramzi Suleiman, Policy Manager at Carers Trust, said:

“Many carers have to reduce their working hours or leave employment altogether because of their caring role, which has an immediate impact on their income, as well as potentially far-reaching consequences on their finances in later life. It’s good to see the increasing number of carers who are claiming Carer Credit but given the number of carers in the country, clearly many carers are still missing out.

"No one should face financial hardship because of their caring responsibilities, and with our recent Caring in 2035 research showing that the number of unpaid carers will grow in the coming decade, it’s vital people know what they are entitled to. Carers should check if they are eligible for Carer’s Credits, as they are a way of protecting future finances. We encourage carers to reach out to their local carer service who may be able to help carers determine if they are entitled to them.”