02/12/2005

Carers losing out on £746m in benefits

People who give up work to become carers are losing out on £746 million in benefits, according to a report.

Charity group Carers UK said that older carers were particularly hard hit. The charity said that around 250,000 carers aged over 60 were missing out on their entitlement to pension credit, while a further 64,000 also lost out on the extra Carer Addition benefit.

Imelda Redmond, Chief Executive of Carers UK, estimated that £86 million worth of Carer Addition benefit that had gone unclaimed could be “just the tip of the iceberg”.

The report also found that one in ten older carers is having to cutback on food to make ends meet, while 68% were also having to cut back on other essentials such as clothes and heating.

Women suffered the biggest financial impact by becoming a carer, the report found. Twice as many female respondents reported that caring had restricted their ability to save for a pension, while more women were likely to have left work because of their caring role.

However, men aged between 60–64 also identified themselves as seriously financially affected.

The figures were published to mark the sixth Carers Rights Day, a national day of action organised by Carers UK to raise awareness of carer’s benefits and their rights under current legislation.

Ms Redmond said: “Claiming Pension Credit can clearly make a difference to carers’ lives. It is vital that carers claim their entitlements. We know that if they don’t, they struggle on a low income and this affects their health and well-being.

“Carers can easily suffer a ‘double whammy’. For younger carers under the age of 60, giving up work and not claiming the right benefits on time can mean lasting poverty because their pensions will not be protected. Some 390,000 carers are currently not building up rights to a state pension. Then, in retirement, if they have small pension or savings, they may still not get their entitlements.”

The charity has called for better information on benefits, rights and support services; tailored advice on major financial decisions; flexibility from employers; and an adequate income to be provided for those carers not in work.”

(KMcA/SP)

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