DWP State Pension warning as millions could miss out on £221 a week
Millions of people providing care could risk losing their State Pension entitlement. There are 10 million unpaid carers across the UK, who are now being warned to take action so they do not lose their State Pension.
The warning comes from Mobilise - a community group for unpaid carers - who has said many carers have to reduce their work in order to provide caring support. This means they are at risk of not making enough National Insurance Contributions (NICs).
According to the group, if you earn less than £242 a week, you do not make enough to contribute to National Insurance. Under the current rules, you need 35 qualifying years of NICs to get the full amount of the New State Pension.
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If you have less, you will not be eligible for the full amount, Mirror reports. You also need to have 10 full years to get anything at all.
Currently, the full New State Pension is worth £221.20 a week or £11,541.90 a year. Mobilise said it could be an 'unpleasant' shock to some if they do not get their State Pension.
But it said there is a way for unpaid carers to protect their pensions - by claiming Carer's Credit. This 'fills the gap' between caring and work.
This ensures any years when you are not paying National Insurance because of time spent caring still count. Mobilise said it can be a 'huge help' in building up your NICs towards the 35 year target.
To be eligible for Carer's Credit, you will need to be caring for someone for more than 20 hours but less than 35 hours a week. If you provide care for more than 35 hours a week, you may instead be eligible for the Department for Work and Pensions (DWP) Carer’s Allowance instead.
This benefit pays £4,258 a year and protects your State Pension by automatically filling the gaps in your National Insurance record. The person you are caring for must also be claiming an eligible benefit, such as Disability Living Allowance (DLA) or Personal Independence Payments (PIP).
Mobilise said that if the person you are caring for is not receiving an eligible benefit, you can also apply for a Care Certificate which may still allow you to make contributions to your record. Carers can check if they are eligible for Carer's Credit by using Mobilise's free online tool here.
Suzanne Bourne, a care expert at Mobilise, said unpaid care can be an incredibly 'demanding' job. She said it can also cause a 'financial strain' on households.
She said: "Few think as far ahead as their pension, but it’s vital that this issue isn’t overlooked. If you start work at 21 and stop working at 51 to care for your partner, you will only receive a partial state pension when you turn 66. This could come as a huge shock and could have been avoided with the Carer’s Credit.
"We’re encouraging everyone to check whether they are eligible as soon as possible. Carer’s Credit can be backdated to the start of the previous tax year, even if the person we were caring for no longer has care needs or has passed away. So it’s vital that you don’t leave it too long to submit your application, if you think you’re eligible."