Millions of people are being warned they could be missing out on an obscure benefit which could boost their pension pots by up to £328 per year.
The financial advice is being directed at unpaid carers who don’t earn enough to make National Insurance (NI) contributions, so may not be eligible for the full State Pension.
To get any new State Pension you need 10 qualifying years on your NI record when you reach State Pension age if you are a man born on or after April 6, 1951, or a woman born on or after April 6, 1953.
Carer’s credit helps fill gaps in the NI records of carers who look after someone for at least 20 hours per week.
The aim of the benefit is to allow you to take on caring for a loved one without impacting your ability to qualify for the State Pension.
Suzanne Bourne, an expert at unpaid carer support service Mobilise, said: “We’re encouraging everyone to check whether they are eligible as soon as possible.”
To qualify for Carer’s credit, you have to be aged over 16, under State Pension age and the person you look after has to be in receipt of one of the following:
- Disability Living Allowance care component at the middle or highest rate
- Attendance Allowance
- Constant Attendance Allowance
- Personal Independence Payment daily living part
- Armed Forces Independence Payment
- Child Disability Payment (CDP) care component at the middle or highest rate
- Adult Disability Payment daily living component at the standard or enhanced rate
- Pension Age Disability Payment
However, you may still qualify for Carer’s credit if the person you are caring for doesn’t get one of the above.
It is also possible to receive Carer’s credit if you have breaks from caring, such as a short holiday, or if you or the person you care for goes into hospital.
By claiming the credit, you could potentially boost your State Pension by £328 per year, potentially adding some £6,000 over the course of a typical retirement.
Ms Bourne explained Carer’s credit can be backdated to the start of the previous tax year even if the person you care for no longer needs help, or if they have died.
She said: “So it’s vital that you don’t leave it too long to submit your application, if you think you’re eligible.”
Mobilise’s expert suggested checking your NI record before applying. This can be done via the Government’s “Check your State Pension” tool online or via the HMRC app.
You don’t need to apply for Carer’s credit if you receive Carer’s Allowance or Carer Support Payment as this means you will automatically get credits.
Those who get Child Benefit for a child under the age of 12 will get credits automatically too. Foster carers can apply for NI credits instead of Carer’s credit.
