For more information about pensions in general call the Pension Service on /

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1 Pension credit changes Pension credit will be reformed to take into account changes brought about by the new universal credit. Housing costs for renters will eventually be incorporated into a new pension credit plus. Amounts for children will eventually be added to pension credit but it looks as though there will be no long term equivalent of working tax credit for older people who are in low paid work. A new savings limit is likely to be introduced for pension credit and there are proposals to abolish savings credit for pensioners who reach pension age after the introduction of the single-tier pension. However, carers should find it easier to get the extra amount for caring in pension credit. How do I know how much pension I will get? You may want to check how much pension you are likely to get and whether it is worth purchasing additional voluntary national insurance contributions to try to improve your pension. You can get a pension forecast statement by calling The Future Pension Centre on / or online at For more information about pensions in general call the Pension Service on / Carers and Pensions For more details on how to check and maximise your state pension see Carers UK s information on or phone their Adviceline on or contact the Pensions Advisory Service on

2 HCSLN02F10(f) Issue 4 October 2014 Design Ref:

3 6 Carers and Pensions EXTRA Money for Carers

4 State pension Major changes are being introduced which will affect benefits for older people, in particular an increase in the age you can claim your state pension and the introduction of a flat rate pension. The pension age for women born after 5 April 1950 is gradually increasing from 60, so that by November 2018 it will be 65, the same as for men. From December 2018 the age for both men and women will start to rise and reach 66 by October There are further plans to increase the pension age to 67 between 2026 and See for more information. This means there will be a corresponding increase in the age that both men and women can claim pension credit so more older people will have to claim working age benefits, including the new universal credit. It also means that more older people may be affected by reforms like the social sector rent restrictions and benefit cap. Your state pension is based on the national insurance contributions made during your working life. Those reaching pension age after 6 April 2010 and before the introduction of the flat rate pension in April 2016 (see below) need at least 30 qualifying years to receive a full basic state pension. This may also include an additional state pension (state second pension). Carers and Pensions 2

5 Contributions are made by paying national insurance or, if you are unable to do this, for instance, because you are caring for a child or disabled person, the state can credit contributions for you. However, this only happens if you claim the right benefits or take the right action. If you claim carer s allowance, income support as a carer or are getting child benefit for a child under 12 you should be automatically credited with national insurance contributions. Otherwise carers looking after someone for at least 20 hours a week can now apply for a carer s credit to help them qualify for both the basic and state second pension. Carer s credit To qualify you must care for one or more disabled people for a total of 20 hours or more per week. Each person you care for must receive disability living allowance care component at the middle or highest rate, the daily living component of PIP or attendance allowance at any rate. If they are not getting these benefits you can still get a carer s credit if you have a care certificate signed by a health or social care professional; a certificate is supplied with each application pack. This will help people who previously had difficulty protecting their state pension, for example carers caring for less than 35 hours a week, who can t get carers allowance, or carers looking after someone who is not getting the appropriate disability benefit. 3

6 The carer s credit replaces home responsibilities protection (HRP) for carers. Any previous HRP will be converted to years of credits for people who reached state pension age on or after 6 April See for claim forms and information about the carer s credit or phone the Carer s Allowance Unit on Credits for family members providing childcare You can apply for national insurance credits that will count towards pension and bereavement benefits if you are providing childcare for a child under 12. You must be a specified family member of the child, for example, grandparent. There is no set number of hours that you have to look after the child. See for more information and an application form. Flat rate state pension There are plans to introduce a single-tier state pension of approximately 145 a week from April This will replace the state pension and the additional state pension. How much you qualify for depends on your national insurance record and whether you were in a contracted-out pension scheme. Anyone due to retire before August 2021 will be sent a state pension statement by the DWP, a personalised written estimate of what you can expect to receive under the new system. Current pensioners and everyone reaching state pension age before the introduction of the single-tier pension will continue to receive their pension in line with existing rules. For more information see 4