Carer’s Credit – Are You Claiming?

It is estimated that almost 200,000 people in the UK could receive Carer’s Credit which can help boost their state pension. Currently only 11,000 of those eligible have signed up though; this equates to just 5%. This credit is a way of increasing your National Insurance contributions such that your state pension could be boosted by over £200 per year on retirement.Balmer Accountancy - Carer's Credit

What is Carer’s Credit?

If you spend 20 or more hours a week caring for someone else and are under the state pension age, you may be able to get Carer’s Credit applied to your National Insurance record. One in five carers have to give up paid work in order to look after someone; the resulting loss of National Insurance contributions can make it very difficult for them to make ends meet once they reach retirement age.

Who is eligible for Carer’s Credit?

If you look after one or more people for at least 20 hours per week who get:

  • Disability Living Allowance (care component at the highest or middle rate)
  • Personal Independence payment (daily living component at standard or enhanced rate)
  • Attendance Allowance (at any rate)
  • Constant Attendance Allowance (at any rate)

You may still be able to claim Carer’s Credit if the person or people that you are caring for do not receive any of the above benefits. They must be certified by an appropriate health or social care professional as needing the hours of care that you provide.

It is also important to note that:

  • The carer must be aged 16 or over
  • The carer must be under state pension age
  • There is no limit to the number of people you can look after
  • Your level of income, savings or investments does not affect Carer’s Credit
  • If others also look after the people you care for, you may still be eligible
  • You may be able to claim even if you only provide care at weekends

Who does not need to claim?

There is no need to apply if you:

  • Get Carer’s Allowance
  • Get Child Benefit for a child under the age of 12
  • Are a foster carer who gets National Insurance credits from HMRC
  • Get Income Support because you are a carer
  • Know you have already qualified for their state pension

Further information about Carer’s Credit can be obtained from the Gov.UK website.

The relevant claim forms and notes can be found here.

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