Thousands feared to miss out on Carer's Credit worth £7,000 in State Pension income – check if you're eligible

Unpaid carers could boost their future State Pension by more than £7,000 by claiming a little-known credit to add to their National Insurance record.

Carer's Credit is a National Insurance credit that helps people who provide unpaid care maintain their State Pension record while they are out of the workforce or working reduced hours.

It is available to those who care for someone for at least 20 hours a week and who are not receiving Carer's Allowance.

Applications have risen by more than 1,500% in 15 years, increasing from just 420 in 2010/11 to 6,770 in 2024/25, according to figures obtained by financial adviser Quilter through a Freedom of Information request to the Department for Work and Pensions (DWP).

The number of applications reached a record 7,110 in 2023/24 before falling slightly the following year.

However, with millions of people providing unpaid care across the UK, it's feared many are missing uot on these valuable credits.

What is Carer's Credit?

Carer's Credit is a National Insurance credit for people who provide unpaid care for at least 20 hours a week.

You need 35 years of National Insurance contributions to claim the full State Pension.

National Insurance credits help fill in your record when you are not paying National Insurance contributions through work.

If you take time out of employment, reduce your hours or earn too little to build up a qualifying year, gaps could affect your retirement income.

Carer's Credit can help protect your record during periods when you are caring for someone who needs support.

The credit does not pay you money each week or month. Instead, it helps you build the qualifying years that may be needed for your State Pension.

One qualifying year is worth around £359 a year in new State Pension income at the current 2026/27 rate, according to Quilter, potentially adding around £7,170 over a 20-year retirement for someone whose State Pension entitlement would otherwise be reduced by that missing year.

Who can claim Carer's Credit?

You may qualify for Carer's Credit if you are aged 16 or over and under State Pension age while providing care for one or more people for at least 20 hours a week.

The person you care for will usually need to receive a qualifying disability benefit, such as Attendance Allowance, the daily living component of Personal Independence Payment (PIP) or the care component of Disability Living Allowance at the middle or highest rate.

Other qualifying benefits include Constant Attendance Allowance and certain equivalent disability benefits in Scotland.

If the person you care for does not receive one of the listed benefits, you may still be eligible. You will need to complete the Care Certificate section of the application form and ask a health or social care professional to sign it.

Your own income, savings and investments do not affect eligibility for Carer's Credit.

You can also continue to qualify during certain breaks in caring, including a holiday or a hospital stay, for up to 12 weeks in a row.

How much could Carer's Credit add to your State Pension?

The full new State Pension is currently £241.30 a week for the 2026/27 tax year, equivalent to £12,547.60 a year.

Under the new State Pension system, 35 qualifying years of National Insurance contributions or credits are usually needed to receive the full amount.

One qualifying year therefore represents around one thirty-fifth of the full new State Pension.

Based on the current rate, that works out at approximately £6.89 a week, or £358.50 a year.

Over a 20-year retirement, this could add up to around £7,170 in State Pension payments.

Do you need to claim Carer's Credit if you already receive Carer's Allowance?

If you receive Carer's Allowance, or Carer Support Payment in Scotland, you will automatically receive National Insurance credits and do not need to apply separately for Carer's Credit.

You may also receive credits automatically if you get Child Benefit for a child under 12.

Carer's Credit is particularly relevant to people who provide regular unpaid care but do not qualify for Carer's Allowance or Carer Support Payment.

This is why it is worth checking your circumstances even if you are not receiving a regular carer's benefit.

How to claim Carer's Credit

You can apply for Carer's Credit by completing the Carer's Credit form and sending to Freepost DWP Carers Allowance Unit. You do not need a stamp or postcode.

If you need a paper form or an alternative format, you can contact the Carer's Allowance Unit on 0800 731 0297, Monday to Friday, 8am to 6pm.

It's important not to delay your application.

Carer's Credit can generally be backdated to cover periods in the previous tax year, but carers who wait too long before checking their eligibility may miss the opportunity to secure National Insurance credits for earlier years.

Jon Greer, head of retirement policy at Quilter, said: "Carer's Credit exists to help ensure people are not financially disadvantaged simply because they have taken on caring responsibilities.

"The steady rise in claims is encouraging and suggests awareness of the credit is growing.

"However, when compared with the millions of unpaid carers across the UK, the number of people applying remains relatively small.

"That indicates there are still many carers who may be missing out on support they are entitled to and potentially losing out on valuable State Pension entitlement as a result.

"Unpaid carers provide an enormous service to society and help fill gaps in an already stretched social care system. Carer's Credit is one small but important way of recognising that contribution and ensuring people do not suffer a lasting financial detriment as a result of caring for others."