Thousands of Unpaid Carers Face Significant Financial Loss Due to DWP Pension Age Adjustment
A major change to the state pension age by the Department for Work and Pensions (DWP) is set to impact tens of thousands of unpaid carers across the UK. Analysis reveals that approximately 26,000 individuals providing care for family members or friends will lose out on £7,011 per year, equivalent to £134.82 each week.
Substantial Gap Between Working-Age and Pension-Age Benefits
Research conducted by Carers UK highlights a critical disparity in financial support for carers at different life stages. A working-age carer receiving Carer’s Allowance, the Carer Element, and Universal Credit is entitled to £138.68 weekly. In contrast, a carer who has reached State Pension age receives £273.50 per week, creating a significant shortfall for those approaching retirement.
Gender Disparity and Increased Vulnerability
The changes will have a pronounced gender impact, with women comprising 63% of those aged 60 to 66 who receive Carer’s Allowance. This demographic will be disproportionately affected by the rise in the state pension age, exacerbating existing financial inequalities.
Many unpaid carers dedicate at least 35 hours per week to caregiving responsibilities, a requirement to qualify for Carer’s Allowance. The demands of this role often force carers to reduce their working hours or leave paid employment entirely, leading to increased financial vulnerability.
Broader Implications for Carer Poverty
Previous studies by Carers UK estimate that around 600 people daily leave work to provide care, contributing to a heightened risk of poverty. Across the UK, 1.2 million unpaid carers currently live in poverty, facing a greater likelihood of financial hardship compared to non-carers.
Calls for Policy Review and Enhanced Support
Carers UK is advocating for a comprehensive review of Carer’s Allowance to ensure it adequately meets the needs of carers. The organization recommends implementing an enhanced payment at least two years before retirement to mitigate the impact of poverty in later life.
Emily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, emphasized the urgency of the situation. "Thousands of unpaid carers provide essential support 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," she stated.
"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," Holzhausen added.
"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."
