We understand the unpredictability of life all too well. The majority of our customers have a lot going on at the same time and are just trying to keep their heads above water. Perhaps the least visible group are the older carers, who unselfishly pour their lives into caring for relatives but are all too often barely managing to get by themselves.
A recent study from the abrdn Financial Fairness Trust has highlighted a huge problem that’s preventing thousands of carers from getting the assistance they desperately need, simply because the system is too complicated and too few people are aware of what they’re eligible to receive.
Thousands Missing Out on Carer’s Allowance
The abrdn Financial Fairness Trust has put the number of the UK's older carers who are missing out on up to £2,400 a year in benefits at around 65,000. The reason they are missing out is that they are not receiving the Carer's Allowance - an addition to the Pensions Credit - that they would otherwise be eligible for as they are caring for another individual 35 hours per week.
The system's complexity is the ultimate problem. To get the carer top-up (Carer Addition) to their pension credit, carers need to apply for Carer’s Allowance, but if their State Pension is more than this allowance then they will not be paid it. However, in order for carers to prove that they have an ‘underlying entitlement’ to the benefit, they still need to apply for Carer’s Allowance, even if they won’t actually receive it. Showing that they have this entitlement makes it more likely that a carer would be eligible for, and successfully receive, Pension Credit. As you can see, it can be a complicated and unclear process.
The Economic Impact on Carers
Full-time care for that loved one is an enormous burden. For retirement-age carers, it has a personal cost. One in five older carers live below the poverty line, and four out of ten say they are stressed and worried about money. With the cost of living remaining high and essentials such as food, electricity, and travel continuing to eat away at family budgets, the added £2,400 per year makes the difference like never before.
What is more worrying is the fact that this is not a new benefit, nor an ad hoc allocation. These are funds that carers may already be eligible to receive, but are failing to get them due to misinformation, a lack of awareness, or administrative bottlenecks. Although this blog is for informational purposes only, if you need credit, visit our homepage for full terms and conditions.
What Can Be Done
The abrdn Financial Fairness Trust is calling on the government to move swiftly. They are pushing for automatic entitlement payments and better communication from the Department for Work and Pensions to advise carers on what they can claim. System reform and increased engagement have also been campaigned for by Carers UK.
In the meantime, carers can take the following steps:
Verifying entitlement to Carer's Allowance and Pension Credit using GOV.UK or contacting the Pension Service.
Applying for Carer's Allowance, despite having a State Pension, to create an underlying entitlement.
Receiving advice from organisations such as Citizens Advice and Carers UK to guide through the process.
A Shared Responsibility
Fair for You understands the power of fairness for everyone. This means fundamentally having a more equal system, where the contribution of carers is seen and valued. More and more people are being short-changed under the system after already having given so much.
We hope, through shining the spotlight on this situation, that more carers will have the confidence to claim their entitlement, and more politicians will take notice of the need for change and get it done. We continue to advocate for further support and simplified processes.
Meanwhile, we urge all who think they, or their loved ones, may be eligible for the Carer's Allowance to check today. Nobody should be excluded through bureaucracy or the unavailability of clear information.
Why It Matters to Us at Fair for You
Fair for You started out with the social goal of supporting families who are generally excluded from traditional financial institutions. We offer regulated loans with no hidden fees or late charges, and any surplus supports more families*, and we understand through chatting with our customers that there is often financial tension around caring responsibilities.
It is only fair that carers who have dedicated their working lives to their families and their communities should receive a decent deal. It is astonishing to see the number of them who are missing out on the benefits they are entitled to because of a lack of clarity. We believe that money should be clear and simple to claim for those who are the most in need.
*We offer flexible loans where suitable and affordable, but always encourage customers to explore grant and benefit options first.
Credit provided by Fair for You is subject to status and affordability checks.