Thousands of unpaid carers across the UK could lose out on more than £7,000 each because of changes already taking effect to the State Pension age, campaigners are warning — and the financial impact is expected to hit women particularly hard.
New analysis from Carers UK suggests around 26,000 unpaid carers may collectively miss out on roughly £182 million in support as the State Pension age gradually rises.
The warning comes as the Government continues increasing the pension age threshold, meaning many carers now face waiting longer before they can access pension-age benefits from the Department for Work and Pensions (DWP).
For people already struggling to balance full-time caring responsibilities with limited income, the delay could create a major financial gap at one of the most difficult stages of life.
Why carers are losing money
The issue centres around the gradual rise in the State Pension age.
The State Pension age is the earliest point someone can begin receiving:
- State Pension payments,
- Pension Credit,
- and other pension-age benefits.
The Government is currently increasing the pension age from 66 to 67 between 2026 and 2028.
Official details are available through:
https://www.gov.uk/state-pension-age
For unpaid carers, that extra year before reaching pension age means remaining on working-age benefits for longer — even if they are unable to work because they are caring full-time for a loved one.
According to Carers UK, the financial difference between working-age and pension-age support can be dramatic.
The £7,011 shortfall explained
Carers UK estimates that affected carers could lose around £7,011 during the additional year they must wait for pension-age support.
Here’s how the figures compare:
| Benefit Type | Approximate Weekly Amount |
|---|---|
| Carer’s Allowance + Universal Credit Carer Element (before pension age) | £136.68 |
| Pension Credit Carer Addition (after pension age) | £273.50 |
That creates a difference of roughly:
£134.82 per week.
Across a full year, the shortfall adds up quickly.
For carers already surviving on tight budgets, campaigners say the gap could push many deeper into financial hardship.
Why unpaid carers are especially vulnerable
Unpaid carers are often among the most financially exposed groups in the country.
Many reduce working hours or leave employment entirely because of caring responsibilities.
Over time, that can affect:
- pension savings,
- National Insurance contributions,
- career progression,
- and long-term financial security.
Carers UK says many people simply have no realistic alternative because social care support remains overstretched or unavailable.
Emily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, 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 that women are expected to make up the majority of those affected.
Women likely to bear the biggest impact
The warning has reignited wider concerns about gender inequality within retirement finances.
Women are statistically far more likely to:
- take on unpaid caring roles,
- reduce paid employment,
- and rely heavily on State Pension income later in life.
That often leaves female carers with:
- lower private pension savings,
- reduced retirement income,
- and greater risk of poverty in older age.
Campaigners argue the State Pension age rise risks widening those inequalities further unless additional support is introduced.
Calls for Carer’s Allowance reform
Carers UK is now urging ministers to review and strengthen financial support for carers approaching retirement age.
The charity says Carer’s Allowance in particular needs reform.
Current Carer’s Allowance rates remain relatively low compared with the number of hours many unpaid carers provide.
The benefit currently requires claimants to provide at least 35 hours of care per week.
Government guidance on Carer’s Allowance is available at:
https://www.gov.uk/carers-allowance
Meanwhile, Pension Credit information can be found at:
https://www.gov.uk/pension-credit
Campaigners argue carers nearing pension age should receive enhanced support to prevent them falling into poverty during the transition period.
State Pension age debate intensifying again
The issue also feeds into the broader political debate surrounding State Pension age increases.
Successive governments have argued the changes are necessary because:
- people are living longer,
- the population is ageing,
- and pension costs continue rising.
But critics say blanket increases affect some groups far more severely than others.
People with:
- poor health,
- physically demanding jobs,
- or caring responsibilities
often struggle to remain economically active into their late 60s.
And honestly, this is where frustration grows for many carers. A lot already feel they are effectively saving the state billions through unpaid care work, yet still face financial penalties later on.
What affected carers can do
Carers approaching retirement age may want to:
- check their State Pension age online,
- review National Insurance contribution records,
- and ensure they are receiving all available benefits.
Some carers may also qualify for:
- Pension Credit,
- Attendance Allowance,
- Council Tax support,
- or additional Universal Credit elements.
The Government’s benefits checker is available at:
https://www.gov.uk/benefits-calculators
Final thoughts
The rise in State Pension age is creating growing financial pressure for thousands of unpaid carers who are already among the UK’s most financially vulnerable groups.
For many, the issue is not simply about waiting another year for pension payments — it’s the sharp gap between working-age and pension-age support that campaigners say leaves carers exposed to serious hardship.
As debates around pensions, welfare spending, and social care intensify, pressure is likely to grow on ministers to address what charities increasingly describe as a hidden retirement inequality affecting unpaid carers across Britain.
FAQs
Why are unpaid carers losing money?
Because the State Pension age is rising, carers must wait longer before accessing pension-age benefits like Pension Credit.
How much could carers lose?
Carers UK estimates some unpaid carers could lose around £7,011 during the extra waiting year.
What is the State Pension age increasing to?
The State Pension age is increasing from 66 to 67 between 2026 and 2028.
Why are women more affected?
Women make up the majority of unpaid carers and often have lower private pension savings due to interrupted careers.
What benefits can unpaid carers claim?
Eligible carers may receive Carer’s Allowance, Universal Credit Carer Element, and later Pension Credit support.
