POT LUCK
How thousands of unpaid carers can unlock winter fuel payments and extra £2,370 a year
Plus we reveal everything you need to know about how to apply and who gets cash
THOUSANDS of unpaid carers can unlock winter fuel payments, as well as £2,370.
People over the state pension age and who are on a low income can grab the benefits through Pension Credit.
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The benefit will also entitle carers to the winter fuel payment this year, worth £300 - as well as the top-up "carer addition".
Charity Carers UK is encouraging pensioners to check their eligibility, as they could receive up to an extra £2,370 a year as well as housing benefit and council tax support.
Pension Credit is a weekly payment from the government to those over the state pension age who have an income below a certain level.
Unpaid carers may be eligible for a higher minimum amount because the carer addition is factored into the Pension Credit calculation.
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But in order to get the carer top-up to Pension Credit, carers must first apply for a Carer’s Allowance.
To claim this benefit, they must be spending at least 35 hours a week caring for someone with an illness or disability receiving a disability benefit such as Attendance Allowance or Personal Independence Payment (PIP) at the right levels.
It's important to note that current benefit rules state that if someone’s State Pension is more than Carer’s Allowance, they cannot get the benefit.
But, carers still need to apply for Carer’s Allowance to get the addition so they can prove they have an "underlying entitlement".
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This would increase their chances of being eligible for Pension Credit and would increase the award.
Rule changes announced in July mean that only pensioners who claim Pension Credit or certain other benefits will receive the £300 Winter Fuel Payment this year.
Could you be eligible for Pension Credit?
Carers UK says it is concerned that pensioners who are unpaid carers and on low incomes will struggle this winter if they don’t get the benefit.
It says that carers often face high social care costs and extra costs, like for travel when accompanying the person they care for to appointments.
The charity's research shows that 20% of carers aged 65 and over live in poverty, compared to 13% of non-carers.
Just 100,000 unpaid carers who are pensioners get Pension Credit and the Carer Addition, it found.
Carers UK is concerned that there could be many more who could be missing out.
There's no exact figure for just how many carers are missing out but with half a million missing out on Carer's allowance and 880,000 on Pension Credit - according to the latest data - we can assume it's likely thousands of carers.
Emily Holzhausen CBE, director of policy and public affairs, at Carers UK, said: "There's no time to lose to make sure that carers apply for Pension Credit when we know that so many are struggling in poverty in retirement. With the winter coming, and fuel prices still high, they need every penny they can get.
“For pensioners who are unpaid carers, understanding your entitlements is complicated. We’re worried that many more carers will be missing out, but we just don’t know how many."
She went on to urge pensioners who are carers to apply for Carer’s Allowance.
While they are very likely to be told it won’t be paid, it is the first step to getting Pension Credit and Carer Addition.
Ms Holzhausen added: "This shines a light on the urgent need for reform of the system when applying for benefits. We've seen the devastating impact of Carer's Allowance overpayments due to poor systems for working-age carers.
"The mind-boggling complexity of benefits for older carers prevents them from getting the help they are entitled to and could be drastically simplified by Government."
What is the Winter Fuel Payment?
Consumer reporter Sam Walker explains all you need to know about the payment.
The Winter Fuel Payment is an annual tax-free benefit designed to help cover the cost of heating through the colder months.
Most who are eligible receive the payment automatically.
Those who qualify are usually told via a letter sent in October or November each year.
If you do meet the criteria but don't automatically get the Winter Fuel Payment, you will have to on the government's website.
You'll qualify for a Winter Fuel Payment this winter if:
- you were born on or before September 23, 1958
- you lived in the UK for at least one day during the week of September 16 to 22, 2024, known as the "qualifying week"
- you receive Pension Credit, Universal Credit, ESA, JSA, Income Support, Child Tax Credit or Working Tax Credit
If you did not live in the UK during the qualifying week, you might still get the payment if both the following apply:
- you live in Switzerland or a EEA country
- you have a "genuine and sufficient" link with the UK social security system, such as having lived or worked in the UK and having a family in the UK
But there are exclusions - you can’t get the payment if you live in Cyprus, France, Gibraltar, Greece, Malta, Portugal or Spain.
This is because the average winter temperature is higher than the warmest region of the UK.
You will also not qualify if you:
- are in hospital getting free treatment for more than a year
- need permission to enter the UK and your granted leave states that you can not claim public funds
- were in prison for the whole "qualifying week"
- lived in a care home for the whole time between 26 June to 24 September 2023, and got Pension Credit, Income Support, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance
Payments are usually made between November and December, with some made up until the end of January the following year.
What is pension credit and who is eligible?
Pension credit is a government benefit designed to top up your weekly income if you are a state pensioner with low earnings.
The current state pension age is 66.
There are two parts to the benefit - Guarantee Credit and Savings Credit.
Guarantee credit tops up your weekly income to £218.15 if you are single or your joint weekly income to £332.95 if you have a partner.
Savings credit is extra money you get if you have some savings or your income is above the basic full state pension amount - £169.50.
Savings credit is only available to people who reached state pension age before April 6, 2016.
Usually, you only qualify for pension credit if your income is below the £218.15 or £332.95 thresholds.
However, you can sometimes be eligible for savings credit or guarantee credit depending on your circumstances.
For example, if you are suffering from a severe disability and claiming Attendance Allowance, as well as other benefits, you can get an extra £81.50 a week.
Meanwhile, you can get either £66.29 a week or £76.79 a week for each child you're responsible and caring for.
The rules behind who qualifies for pension credit can be complicated, so the best thing to do is just check.
You can do this by using the Government's pension credit calculator on its website.
Or, you can call the Pension Service helpline on 0800 99 1234 from 8am to 5pm Monday to Friday.
Those in Northern Ireland have to call the Pension Centre on 0808 100 6165 from 9am to 4pm Monday to Friday.
It might be worth a visit to your local Citizens Advice branch too - its staff should be able to offer you help for free.
One additional and major perk of pension credit is that it is known as a "gateway" benefit in that it opens up a host of other freebies and perks.
This includes a free TV licence worth £169.50 a year if you are 75 or over and council tax discounts.
And of course, if you are on the guarantee credit part of pension credit, you also qualify for the Warm Home Discount.
What is Carer's Allowance and who is eligible?
To be eligible for carers allowance you must be aged 16 or over and not be in full time education.
You also must not be earning over £151 a week from employment or self-employment after tax deductions.
Carers will also not be paid more if they look after more than one person.
If you qualify for the benefit you can choose to be paid weekly in advance or every 4 weeks.
You can apply for the carer's allowance online by visiting www.gov.uk/carers-allowance/how-to-claim.
You can also request a form by calling the Carer's Allowance Unit on 0800 731 0297.
Processing time usually takes up to 12 weeks to get a decision on your claim.
Carer's Allowance can be backdated for up to 3 months if you were eligible during that time.
If your state pension is less than the Carer's Allowance amount of £81.90, you can claim Carer's Allowance to top it up to that level.
But if your state pension is more than £81.90, you won't receive any of the benefit.
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This is because the State Pension and Carers Allowance are classed as 'overlapping' benefits, which can't be paid at the same time.
If the government recognises that you are struggling financially as a carer on a pension you can get extra money on other benefits you claim such as Housing Benefit.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity works out what you could get.
Entitledto's determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto's data.
You can use to determine which benefits you could receive and how much cash you'll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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