HUNDREDS of thousands of people are missing out on a key credit that is worth up to £6,840 over the course of their retirement.
Carer’s Credit is a type of government credit that can help you to fill in gaps in your National Insurance record and boost your state pension.
At least 150,000 people are not claiming Carer’s Credit and are missing out on the free National Insurance credits that come with it, experts warn.
When the credits were first introduced in 2010 ministers estimated that around 160,000 carers might be entitled.
But just 9,040 carers claimed the credit in 2023/24, according to a freedom of information request by wealth manager Quilter.
If you care for a loved one for more than 35 hours a week and receive Carer’s Allowance then you automatically get credits towards your state pension.
But if you care for someone for at least 20 hours a week and don’t get Carer’s Allowance then you could be missing out on Carer’s Credit.
Emily Holzhausen CBE, director of policy and public affairs at Carers UK, explains: “If you don’t receive Carer’s Allowance, you’re not earning or you’re on a low income, it’s important to know about Carer’s Credit.
“Caring can be all-consuming, and it can be difficult to see what support you are legally entitled to as an unpaid carer.”
Every year of credits is worth a year of National Insurance contributions, or 1/35 of the full state pension.
That works out at £6.58 a week or £342 a year of state pension.
If you claim the credits and boost your state pension then you could get an extra £6,840 over the course of a 20-year retirement.
Steve Webb, former pensions minister and partner at consultants LCP, said it’s important that people do not miss out on the state pension after giving up their career to become a carer.
He said: “People who are caring for a disabled person often sacrifice their career to do so, so it is important that their National Insurance record does not suffer as a result.”
Am I eligible?
To be eligible you must be under the state pension age and looking after one or more people for at least 20 hours a week.
The person you are caring for must get one of the following benefits:
- Disability Living Allowance care component at the middle or highest care rate
- Scottish Adult Disability Living Allowance at the middle or highest care rate
- Attendance Allowance
- Constant Attendance Allowance
- Personal Independence Payment daily living part
- Armed Forces Independence Payment
- Child Disability Payment (CDP) care component at the middle or highest rate
- Adult Disability Payment daily living component at the standard or enhanced rate
- Pension Age Disability Payment
But if the person you are caring for doesn’t get any of these benefits then you may still be able to claim.
How does the state pension work?
AT the moment the current state pension is paid to both men and women from age 66 – but it’s due to rise to 67 by 2028 and 68 by 2046.
The state pension is a recurring payment from the government most Brits start getting when they reach State Pension age.
But not everyone gets the same amount, and you are awarded depending on your National Insurance record.
For most pensioners, it forms only part of their retirement income, as they could have other pots from a workplace pension, earning and savings.
The new state pension is based on people’s National Insurance records.
Workers must have 35 qualifying years of National Insurance to get the maximum amount of the new state pension.
You earn National Insurance qualifying years through work, or by getting credits, for instance when you are looking after children and claiming child benefit.
If you have gaps, you can top up your record by paying in voluntary National Insurance contributions.
To get the old, full basic state pension, you will need 30 years of contributions or credits.
You will need at least 10 years on your NI record to get any state pension.
When you apply, just fill in the ‘Care Certificate’ part of the application form and get a health or social care professional to sign it.
How can I claim it?
You do not need to apply for Carer’s Credit if you get Carer’s Allowance, a Carer Support Payment or Child Benefit for a child aged under 12 as you will automatically get National Insurance credits.
Meanwhile, if you are a foster carer then you can apply for National Insurance credits instead.
To apply for Carer’s Credit you need to download the CC1 application form from the Gov.uk website.
On the form, provide details including your address, National Insurance number and information about the person you care for.
Once you have filled in the form, send it to the Freepost DWP Carers Allowance Unit.
You do not need a postcode or a stamp.
The form includes a Care Certificate and you need to get a health or social care professional to sign it for you.
How can I appeal a decision?
If your claim is rejected and you are unhappy with the decision then you can challenge it, which is called asking for a free mandatory reconsideration.
You need to contact the benefits office that gave you the decision, by phone, letter or filling in and returning a form asking for a mandatory reconsideration.
You usually need to ask for a mandatory reconsideration within one month of the date on your decision letter.
If you are submitting your appeal in writing then the letter or form must arrive by then.
If you don’t have a decision letter then contact the office where you applied for the benefit.
You will need to provide the date of the original benefit decision, your name and address, date of birth and National Insurance number.
You will also need to submit evidence to support your reasons for why the decision was wrong.
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