State Pension Age Rise Hits Unpaid Carers Hard
The state pension age increase from 66 to 67, phased in between April 2026 and March 2028, is costing more than 25,000 unpaid carers up to £134.82 per week in lost benefits, according to a warning from Carers UK. The charity says these carers also miss out on state pension payments of up to £241.30 until they reach the new pension age.
The change affects those born between April 6, 1960 and July 5, 1960, with the qualifying age rising by one month at a time. For example, those born between May 6 and June 5, 1960, now receive their pension at 66 years and 2 months, starting from July to August 2026 instead of April.
Financial Impact on Carers
Carers UK estimates that about 26,000 unpaid carers will lose £7,011 each year, or £134.82 per week, due to the pension age rise. This is on top of delayed state pension payments. Emily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, explained that a working-age carer receiving Carer's Allowance, the Carer Element, and Universal Credit gets £138.68 per week, compared with £273.50 for a carer who has reached state pension age.
To qualify for Carer's Allowance, carers must provide at least 35 hours of care per week. Many cut back on work or leave paid employment entirely due to caring demands.
Call for Review of Carer's Allowance
Carers UK is calling for a review of Carer's Allowance to better meet carers' needs and recommends an enhanced payment at least two years before retirement to reduce later-life poverty. Ms Holzhausen said: "Thousands of unpaid carers provide essential support to family and friends long before reaching pension age. As one of the most under-pensioned groups in the UK, many have little choice but to care due to limited alternative support."
She added: "We must ensure carers are properly supported as they approach retirement, particularly given the rise in the state pension age. This change means that those nearing retirement age will lose out significantly, especially women, who make up the majority of those affected."
Government Action on Overpayments
Last month, the government announced a major reassessment of Carer's Allowance overpayments, following acceptance of 38 out of 40 recommendations from the independent Sayce Review. From April 2015 to September 2025, unclear guidance on averaging irregular earnings led carers to build up debts unknowingly. The Department for Work and Pensions (DWP) will review over 200,000 cases, with around 25,000 carers potentially seeing debts reduced, cancelled, or refunded.
Work and Pensions Secretary Pat McFadden said: "We inherited a system that left unpaid carers building up debt through no fault of their own, something we’re determined to put right. That’s why we accepted the vast majority of the Sayce Review’s recommendations and are now getting to work implementing them, kicking off the reassessment exercise to review cases impacted by unclear guidance."
The government also increased the Carer's Allowance earnings cliff edge to £204 per week from April 2026, allowing some unpaid carers to earn around £10,000 a year and still receive the benefit.
