Carers UK has published analysis estimating that around 26,000 unpaid carers who cannot work because of their caring responsibilities will spend an extra year on working-age benefits as the State Pension age rises to 67 between 2026 and 2028, with a combined loss of approximately £182 million1. The figures were reported on 17 October 20261.
The charity's analysis puts the loss at £7,011 a year, or £134.82 a week, for each affected carer, which it attributes to the gap between working-age benefits and those available at pension age1. It compares a working-age carer receiving Carer's Allowance, the Carer Element and Universal Credit, entitled to £138.68 per week, with £273.50 for a carer who has reached State Pension age1.
The effect falls unevenly. Women make up 63% of those aged 60 to 66 who receive Carer's Allowance, so they are disproportionately affected by the rise1. To qualify for Carer's Allowance, a carer must provide at least 35 hours of care per week1. Carers UK cites its previous research estimating that around 600 people a day leave work to provide care, and says 1.2 million unpaid carers across the UK live in poverty1.
Emily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, said:
"We must ensure carers are properly supported as they approach retirement, particularly given the new 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."
Carers UK is calling for a review of Carer's Allowance and recommends that carers receive an enhanced payment at least two years before retirement to reduce the impact of poverty in later life1. The government has not responded to the analysis in the reporting; no DWP comment or decision on the recommendation has been reported1.
| Measure | Amount |
|---|---|
| Estimated annual loss per affected carer | £7,011 |
| Estimated weekly loss per affected carer | £134.82 |
| Combined estimated loss (around 26,000 carers) | approximately £182 million |
| Weekly entitlement, working-age carer (Carer's Allowance, Carer Element and Universal Credit) | £138.68 |
| Weekly entitlement, carer who has reached State Pension age | £273.50 |
Source: Carers UK analysis as reported1.
Why it matters for households
The change affects unpaid carers approaching State Pension age who rely on working-age benefits rather than a pension. For the estimated 26,000 people concerned, the pension age rise means an additional year on the lower working-age rates before they can claim at pension-age levels, a difference the analysis puts at £134.82 a week1. Because women are 63% of Carer's Allowance recipients aged 60 to 66, the financial effect is concentrated on them1.
The comparison rests on benefit rates for a carer receiving Carer's Allowance, the Carer Element and Universal Credit against the amount available at pension age1. Carers who provide at least 35 hours of care a week are the group within scope of Carer's Allowance1. The State Pension itself is not payable before pension age, and National Insurance credits for carers affect the record used to build it rather than the age at which it can be claimed.
What happens next
The State Pension age rises to 67 between 2026 and 20281. Carers UK has recommended a review of Carer's Allowance and an enhanced payment for carers at least two years before retirement1. No government response to either recommendation has been reported1.
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