The Department for Work and Pensions (DWP) is urging thousands of households across the UK to check their eligibility for a specific benefit that could significantly boost their retirement income.
This call to action is particularly aimed at unpaid carers and parents who have taken time away from their careers, as they could be missing out on hundreds of pounds each year.
What is Carer's Credit and How Can It Help?
The warning centres on a little-known scheme called Carer's Credit. This benefit is designed to help people who have reduced their working hours or stopped work entirely to care for someone.
Its primary function is to plug gaps in your National Insurance (NI) record. To qualify for the full new State Pension, you typically need 35 qualifying years of NI contributions.
However, you only make these contributions when you are earning over £12,570 a year. This means that anyone who steps back from work to care for children, elderly relatives, or disabled family members risks missing crucial years, which could reduce their final pension amount.
By claiming Carer's Credit, these missing years can be filled, potentially increasing your annual pension income by up to £342.
How Much Could You Gain?
The full new State Pension is currently £230.25 per week, which amounts to approximately £11,973 per year.
An extra £342 a year might not seem life-changing, but over a typical 20-year retirement, this small annual boost adds up to a substantial £6,840 or more. For many, this could mean the difference between a comfortable retirement and struggling to make ends meet.
A DWP spokesperson emphasised the importance of the scheme, stating: “Carer’s Credit ensures that those who take time out of work to care for others are not penalised when it comes to their state pension.”
How to Check Your Eligibility and Claim
To qualify for Carer's Credit, you must be aged 16 or over, under the current State Pension age of 66, and be caring for someone for at least 20 hours per week.
The first step is to check your National Insurance record for any gaps. You can do this easily by using the government's official 'Check your State Pension' tool online.
This service, accessible via the DWP website, shows your current NI record, provides a state pension forecast, and details how much you could gain by filling missing years. You will need to log in using your Personal Tax Account or the HMRC app.
If the person you care for does not receive a qualifying disability benefit, you may still be eligible. In this case, you will need a Care Certificate signed by a health or social care professional to confirm the care you provide.
Thousands of people are believed to be missing out on this financial support simply because they are unaware the scheme exists. Taking a few minutes to check online could secure a more stable financial future.
