New figures from Age UK reveal that 65,000 low-income older carers could be missing out on a Pension Credit top-up worth up to £2,412.80 per year.
These carers, who look after disabled, older and ill relatives and friends, are failing to claim vital financial support they're entitled to.
A complex and confusing application process for the Carer Addition, a top-up to Pension Credit, is preventing many from accessing this crucial help.
This is particularly concerning as Pension Credit serves as a gateway to additional support such as the Winter Fuel Payment.
Older carers could entitled to a Pension Credit boost
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There are 1.3 million unpaid carers aged 65 and over in the UK, with a significant proportion struggling financially. One in five carers of state pension age live in poverty.
Nearly half (48 per cent) of respondents said they feel anxious or stressed when thinking about their financial situation. This lack of awareness is preventing thousands from accessing vital financial support.
The application process is further complicated by the interaction between Carer's Allowance and state pension. If someone's state pension is more than Carer's Allowance, they won't receive Carer's Allowance payments.
However, carers still need to apply for Carer's Allowance to prove they have an 'underlying entitlement' to the benefit, even if they won't actually receive it.
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Pension Credit is a benefit reserved for lower income pensioners GETTYThis "underlying entitlement" increases their chances of being eligible for Pension Credit. One in five carers of state pension age live in poverty.
To receive the Carer Addition to Pension Credit, unpaid carers must first apply for or be entitled to Carer's Allowance. This creates a complex two-step process that many find difficult to navigate.
The system is particularly challenging for older carers who are often providing significant amounts of care whilst dealing with their own health issues.
Many are simply unaware of their potential entitlements or how to access them. A new survey of 344 older carers, carried out by Carers UK for a report supported by abrdn Financial Fairness Trust, found that three quarters (75 per cent) didn't know that submitting a claim for Carer's Allowance makes it more likely they will be eligible for Pension Credit.
The same survey revealed that 40 per cent of older carers would like clearer advice and information about their eligibility for Pension Credit. Many older carers find this confusing, especially as Carer's Allowance often stops being paid when they reach state pension age.
Helen Walker, the chief Executive at Carers UK, said: "Older carers are already having to provide significant amounts of care, are often in poor health themselves and are frequently exhausted from the amount of administration they have to deal with.
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Caring costs are putting pressure on older households GETTY "Having such a complex, frustrating and baffling system is incredibly counter-productive and those on the lowest incomes can least afford to miss out."
Caroline Abrahams, Charity Director at Age UK said: "The extra money an unpaid older carer typically receives from successfully claiming Pension Credit makes a big difference to their finances and quality of life, so it is heartbreaking that so many are missing out because they are unaware of their potential entitlement."
She urged the Government to work with organisations like Carers UK and Age UK to increase public awareness of Pension Credit.
Abrahams also called for longer-term system changes, suggesting it "should move towards proactively identifying the older people most likely to be eligible, without they themselves needing to submit a claim".
