Experts are warning that many households who care for a loved one are missing out on a little-known DWP benefit - and it could boost your state pension by up to £328 a year
Millions of households are being encouraged to claim Carer's credit, which could increase their state pension by up to £328 annually. This alert is aimed specifically at unpaid carers who don't earn enough to make National Insurance contributions and may not be eligible for a full state pension.
The scheme helps unpaid carers continue to build up towards that 35-year target. Each annual credit missed could cost you 1/35th of the value of your state pension, according to wealth manager Quilter. By claiming the credit, you could potentially increase your state pension by £328 annually - adding up to over £6,000 over the course of a typical retirement.
She advises checking your National Insurance record before making a claim. To verify any missing National Insurance years, individuals should first look at their state pension forecast, which can be done through the government's 'Check your State Pension' online tool here or via the HMRC app available on the Apple App Store and Google Play Store.
It details the circumstances where you'll need to claim and when you'll get it automatically. If you don't qualify for free NI credits in some cases, buying back missing years can be really valuable. However, voluntary contributions come at a cost. If you fill gaps between 2006/07 and 2015/16, you'll pay the 2022/23 rates for contributions.
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