The Government is being urged simplify the Pension Credit application process and increase a benefit to help one group of people who may be missing out
A confusing benefits system is denying critical financial aid to tens of thousands of older carers, campaigners have warned. Age UK’s new figures suggest that as many as 65,000 low-income carers of state pension age are missing out on Pension Credit, a benefit worth thousands of pounds that also provides access to other essential support like the Winter Fuel Payment.
Many are oblivious to their entitlement to this top-up benefit, known as the Carer Addition, which can be worth up to £2,412.80 annually. Campaigners are blaming needlessly complex application process, which require pensioners to apply for Carer’s Allowance – even if they won’t receive it – just to qualify for the Carer Addition within Pension Credit, a benefit overseen by the Department for Work and Pensions (DWP).
Age UK said: “There are 1.3 million unpaid carers aged 65 and over in the UK and a significant proportion are struggling to make ends meet.” A survey by Carers UK, supported by the abrdn Financial Fairness Trust, found that three quarters (75%) of older carers didn’t realise that applying for Carer’s Allowance could increase their chances of receiving Pension Credit-even if they weren’t eligible for a payment. Vivienne Jackson, Programme Manager at abrdn Financial Fairness Trust, said: “It’s not right that older carers, often run off of their feet at a time of life when they should have some space to put them up, have a bewildering maze to navigate.
“The system of benefits eligibility for older carers is more arcane than a cryptic crossword.” Helen Walker, chief executive of Carers UK, said: “Older carers are already having to provide significant amounts of care, are often in poor health themselves and are frequently exhausted from the amount of administration they have to deal with.”
She noted that dealing with a highly complicated system adds unnecessary strain, saying: “Having such a complex, frustrating and baffling system is incredibly counter-productive and those on the lowest incomes can least afford to miss out.”
As the Express reports, Walker noted: “With rising costs, we should be doing everything we can to ensure that unpaid carers receive the right entitlements and benefits. Following the tightening of Winter Fuel Payments criteria for those who are in receipt of Pension Credit and other key benefits, a simple claims process becomes even more important.
“The Government needs to take this step before next winter so that as many carers as possible on low incomes get vital support. We also need further measures to ensure that older unpaid carers are not only pulled out of poverty, but better valued and supported.”
Echoing these concerns, Caroline Abrahams, charity director at Age UK, said: “The extra money an unpaid older carer typically receives from successfully claiming Pension Credit makes a big difference to their finances and quality of life, so it is heartbreaking that so many are missing out because they are unaware of their potential entitlement.
“In the shorter term the Government should work with other organisations, including Carers UK and Age UK, to increase public awareness of Pension Credit and support older people to claim it. Longer term the system should move towards proactively identifying the older people most likely to be eligible, without they themselves needing to submit a claim.”
According to the Carers UK survey, nearly half (48%) of older carers said they feel anxious or stressed when thinking about their finances. A total of 40% want clearer information on eligibility.
Currently, if an unpaid carer’s State Pension is more than Carer’s Allowance, they receive no allowance payment. Yet they must still apply to prove an “underlying entitlement” to bolster their Pension Credit.
Carers UK is urging the DWP to simplify the Pension Credit application process for carers, hike the Carer Addition up by £36.60 weekly – a move that could drag 20,000 elderly carers out of severe poverty – and create a specific payment in recognition of the older carers’ efforts.
With winter a few months away and pressure mounting, campaigners are calling for swift reforms to help vulnerable older carers.
