The rising state pension age from the Department for Work and Pensions (DWP) means one group risks losing £134 a week. The DWP state pension age began rising from 66 to 67 in April. But for unpaid carers, it could prove costly.
Emily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, has issued a warning over 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, she said.
Carer's Allowance gap widens
A working-age carer receiving Carer's Allowance, the Carer Element and Universal Credit is entitled to £138.68 per week. That is compared with £273.50 for a carer who has reached State Pension age. The difference means those who have not yet reached pension age receive significantly less financial support.
Ms 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."
Women hit hardest by pension age change
This change means that those nearing retirement age will lose out significantly, especially women, who make up the majority of those affected. The Pensions Act 2014 brought the increase in the State Pension age from 66 to 67 forward by eight years.
The State Pension age for men and women will now increase to 67 between 2026 and 2028. The Government also changed the way in which the increase in State Pension age is phased so that rather than reaching State Pension age on a specific date, people born between 6 April 1960 and 5 March 1961 will reach their State Pension age at 66 years and the specified number of months.
Carers UK calls for strengthened support
Ms Holzhausen CBE added: "We must ensure carers are properly supported as they approach retirement, particularly given the new rise in the State Pension age. 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."
The warning comes as the DWP continues to implement the phased increase in the state pension age, with the full rise to 67 set to be completed by 2028.
