This research report highlights the issues faced by older unpaid carers when claiming Pension Credit. New analysis by Age UK for this research found that 65,000 carers are eligible for Pension Credit but are not receiving it. Many carers are unaware of the complex rules around Pension Credit eligibility, and find the process of claiming the benefit difficult and frustrating. This is particularly concerning given that 1 in 5 carers of State Pension age are living in poverty and need more financial support.

Our research, which was supported by abrdn Financial Fairness Trust, included a survey with nearly 350 carers of State Pension Age, and interviews with a small number of older carers. We found that three quarters (75%) of older carers didn’t know that submitting a claim for Carer’s Allowance makes it more likely carers will be eligible for Pension Credit, and more likely to receive a higher amount.

If someone’s State Pension is more than Carer’s Allowance, they are not paid Carer’s Allowance. As a result, many older carers do not apply for Carer’s Allowance, as they know they will not receive it. However, carers still need to apply for Carer’s Allowance in order to prove they have an ‘underlying entitlement’ to the benefit. Having this underlying entitlement increases their chances of being eligible for Pension Credit, and receiving a higher amount.

In the report, we recommend that Government should simplify the claims process for Pension Credit; create targeted awareness raising campaigns to ensure that carers know what they’re entitled to; raise the level of Carer Addition to lift older carers out of poverty; and model the introduction and delivery of a new additional payment for older carers on top of their State Pension which recognises caring.