If you have caring responsibilities, you could be eligible for a pension credit worth hundreds of pounds a year. Here's everything you need to know about the Carer Credit. 

Nearly 200,000 people with caring responsibilities are eligible for a pension credit worth hundreds of pounds each year—yet only one in 20 have signed up.

If you’re caring for someone but not working or claiming other benefits, you’re probably also not making any National Insurance (NI) contributions towards your State Pension. 

The Carer’s Credit is designed to help people in this situation. The credits can fill gaps in the State Pension retirement income of anyone who cares for others for 20 hours or more each week, but doesn’t qualify for Carer’s Allowance or receive another benefit.

Women and the over-50s represent two-thirds of those eligible.

 

How NI contributions affect your State Pension

state pension national insurance

If you’re going to reach State Pension age after April 2016, there’s a new system to work out how much you’ll receive.

You’ll need to have made NI payments for 35 years to receive the maximum State Pension. So any time out from working or claiming benefits could lower the number of eligible years on your record.

You can request a State Pension statement once you’re over 55 to see how much you’d get. 

Related Posts