• The State Pension age will now increase to 67 between 2026 and 2028 

• Around 26,000 unpaid carers who cannot work because of their caring responsibilities will spend an extra year on working-age benefits, leading to a combined loss of approximately £182 million.  

New changes to the state pension age will see thousands of unpaid carers facing an extra year on lower working-age benefits at a collective loss of approximately £182 million.  

An inquiry into pre-pension income gaps ahead of the state pension age increase to 67 has heard from Emily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, about the impact changes will have for carers.   

Around 26,000 carers looking after family members or friends are expected to miss out on £7,011 a year or £134.82 a week, due to the substantial gap between working-age benefits and those available at pension age.  

Analysis by Carers UK shows that a working-age carer receiving Carer’s Allowance, the Carer Element and Universal Credit is entitled to £138.68 per week, compared with £273.50 for a carer who has reached State Pension age.   

The changes will also have a marked gender impact. Women make up 63% of those aged 60 to 66 who receive Carer’s Allowance, meaning they will be disproportionately affected by a rise in the state pension age.   

Many unpaid carers devote a significant amount of time to caring, and to qualify for Carer’s Allowance, they must provide at last 35 hours of care per week. Without the right support, the demands of this role often lead carers to cut back on working hours or to leave paid employment entirely.   

Previous research by Carers UK estimates that around 600 people a day leave work to provide care, increasing financial vulnerability. Across the UK, 1.2 million unpaid carers live in poverty, with carers facing a higher risk of financial hardship than those who do not provide care.  

Carers UK is calling for a review of Carers Allowance to ensure it meets carers’ needs and is recommending that carers receive an enhanced payment at least two years before retirement to reduce the impact of poverty in later life.   

Emily Holzhausen CBE, Director of Policy and Public Affairs, said:  

"Thousands of unpaid carers provide essential support to family and friends long before reaching pension age. As one of the most under-pensioned groups in the UK, many have little choice but to care due to limited alternative support.   

“We must ensure carers are properly supported as they approach retirement, particularly given the new rise in the State Pension age. This change means that those nearing retirement age will lose out significantly, especially women, who make up the majority of those affected.   

“It is vital that Carer’s Allowance is reviewed and strengthened, including enhanced support in the years before reaching pension age, so that those who dedicate their time to look after others are not left in poverty."