State Pension Rule Change to Cost UK Households £7,000 Each from April
Thousands of state pensioners are set to lose out on significant sums of government support, with campaigners warning that a state pension rule change will cost UK households £7,000 each from April. Around 26,000 unpaid carers in the UK could be losing a combined £182 million due to the rise in the state pension age.
Impact on Unpaid Carers
The state pension age is the earliest point at which individuals can begin receiving state pension and other pension-age benefits from the Department for Work and Pensions. For unpaid carers, this will mean an additional year's wait before they can claim the pension-age equivalents of their current carer benefits.
Carers UK suggests that this could result in around a £7,011 shortfall during the extra year they have to wait. An estimated 26,000 carers who are unable to work due to their caring responsibilities will face this extended wait.
This equates to approximately £134.82 per week that they will miss out on compared to unpaid carers who have already reached state pension age.
Financial Analysis and Benefits Comparison
Carers UK analysis revealed that before reaching state pension age, unpaid carers may be eligible for Carer's Allowance and Universal Credit Carer Element worth around £136.68 per week.
However, upon reaching state pension age, they could qualify for Pension Credit Carer Addition worth around £273.50 per week.
Expert Commentary and Calls for Action
Emily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, said: "Thousands of unpaid carers provide essential support to family and friends long before reaching pension age. As one of the most under-pensioned groups in the UK, many have little choice but to care due to limited alternative support."
"We must ensure carers are properly supported as they approach retirement, particularly given the new rise in the State Pension age. This change means that those nearing retirement age will lose out significantly, especially women, who make up the majority of those affected."
"It is vital that Carer's Allowance is reviewed and strengthened, including enhanced support in the years before reaching pension age, so that those who dedicate their time to look after others are not left in poverty."
Timeline and Demographic Impact
People born between 6 April 1960 and 5 March 1961 will be directly impacted by the stages of a rising state pension. Those born during this period will reach state pension age after their 66th birthday but before their 67th birthday.
Carers UK say the state pension age will increase to 67 between 2026 and 2028. The date they reach state pension age will depend on the exact date they were born. Everyone born after 5 March 1961 will reach state pension age when they turn 67.
People born after 6 April 1978 are expected to have an even higher state pension age of 68 as the state pension age is set to rise again around 2044.
