State pensioners being handed free £2,300 in 'top up' payment

Charity Carers UK is encouraging pensioners to check their eligibility for additional support in the form of Pension Credit from the Department for Work and Pensions

Thousands of pensioners have been offered a "top up" this winter as they can claim Winter Fuel Payments plus an extra £2,300. Charity Carers UK is encouraging pensioners to check their eligibility for additional support in the form of Pension Credit from the Department for Work and Pensions (DWP).

Unpaid carers eligible for the carer top-up to Pension Credit could receive up to an extra £2,370 a year and access additional help including Winter Fuel Payments, housing benefit and council tax support. For those who have reached state pension age, claiming Pension Credit allows them to top up their income if it is low to a guaranteed minimum amount set by the Government. Unpaid carers may be eligible for a higher minimum amount because an additional amount of money called the Carers Addition is factored into the Pension Credit calculation.

To receive the carer top-up to Pension Credit, carers must first apply for Carer’s Allowance. To claim this benefit, they must be spending at least 35 hours a week caring for someone with an illness or disability receiving a disability benefit such as Attendance Allowance or Personal Independence Payment at the right levels.

READ MORE State pensioners waking up to free £150 payment that's 'automatic'

Current benefit rules state that if someone’s State Pension is more than Carer’s Allowance, they are not entitled to be paid Carer’s Allowance. However, carers still need to apply for Carer’s Allowance in order to prove they have an ‘underlying entitlement’ to the benefit, which would increase their chances of being eligible for Pension Credit and would increase the amount of a Pension Credit award.

Emily Holzhausen CBE, Director of Policy and Public Affairs, at Carers UK said: "There's no time to lose to make sure that carers apply for Pension Credit, when we know that so many are struggling in poverty in retirement. With the winter coming, and fuel prices still high, they need every penny they can get.

“For pensioners who are unpaid carers, understanding your entitlements is complicated. We’re worried that many more carers will be missing out, but we just don’t know how many. Pensioners who are carers have to apply for Carer’s Allowance. They are very likely to be told it won’t be paid, but it will give them underlying entitlement that then potentially entitles them to Pension Credit and the top up, Carer Addition.

"This shines a light on the urgent need for reform of the system when applying for benefits. We've seen the devastating impact of Carer's Allowance overpayments due to poor systems for working age carers. The mind-boggling complexity of benefits for older carers prevents them from getting the help they are entitled to and could be drastically simplified by Government."