Many people across the UK are missing out on extra money toward their state pension without even knowing it. A little-known DWP benefit called Carer’s Credit can help fill gaps in National Insurance contributions and boost pensions by up to £342 a year.
This support is especially useful for unpaid carers, parents, and anyone who has taken time away from work to care for loved ones. In this guide, we explain how Carer’s Credit works, why it matters, and how you can check if you qualify.
What Is Carer’s Credit?
Carer’s Credit is a free National Insurance credit given by the Department for Work and Pensions (DWP) to people who care for someone for at least 20 hours per week.
It protects your National Insurance (NI) record during periods when you cannot work or earn enough to pay NI contributions.
Why This Credit Matters
To receive the full UK State Pension, a person needs 35 qualifying years of NI contributions. But NI is only paid when someone earns over £12,570 a year.
This means carers, parents, and part-time workers can easily end up with gaps in their record, reducing their pension.
Carer’s Credit fills these gaps so people do not lose pension money later in life.
How Carer’s Credit Increases Your Pension
If you miss NI years, your state pension may be lower. But by claiming Carer’s Credit, you can add missing years back to your record.
Pension Boost Breakdown
Here is a simple table showing how Carer’s Credit helps:
| Benefit/Detail | Amount/Explanation |
|---|---|
| Full State Pension (weekly) | £230.25 |
| Full State Pension (yearly) | £11,973 |
| Annual boost from Carer’s Credit | Up to £342 |
| Total boost over a 20-year retirement | Over £6,000 |
| Required NI years for full pension | 35 years |
| NI payment threshold | £12,570 yearly earning |
A single year of Carer’s Credit can increase your future pension by £342, and over a full retirement, this small step can add thousands of pounds.
Who Can Apply for Carer’s Credit?
To qualify for Carer’s Credit, you must:
- Be 16 or older
- Be under State Pension age (currently 66)
- Care for someone for 20 hours a week or more
- The person you care for must receive one of the eligible disability benefits
Common cases include:
- Caring for young children
- Supporting elderly relatives
- Looking after disabled family members
- Leaving work or reducing hours to become a full-time or part-time carer
How to Check Your National Insurance Record
Before applying, it is important to check for gaps in your NI history.
You can do this through the government’s ‘Check your State Pension’ service.
This tool shows:
- Your NI record
- Your pension forecast
- Whether you have missing years
- How much you might gain by filling those years
- Whether you should buy voluntary NI contributions or claim free credits
You can log in using your Personal Tax Account or the HMRC app login. If you don’t have an account, you can create one at gov.uk.
Why Many People Don’t Know About This Benefit
Carer’s Credit is not widely advertised, so thousands of people miss out. Many assume they will automatically receive NI credits, but this is not always true.
Unpaid carers especially should check whether they qualify, as even a few months of caring can affect NI records if not credited properly.
Carer’s Credit is a valuable but often overlooked benefit that helps protect the future of UK carers. By filling gaps in National Insurance contributions, it can boost the state pension by up to £342 every year and provide more financial security in retirement.
Checking your NI record only takes a few minutes and can help you avoid losing thousands of pounds over your lifetime. Every eligible household should take advantage of this support to build a stronger pension for the future.
FAQs
Do I get paid money for claiming Carer’s Credit?
No, Carer’s Credit does not give monthly payments. It adds NI credits to your record to increase your future pension.
What if I care for someone but they do not receive disability benefits?
You might still qualify. You can ask a healthcare or social worker to fill out a “Care Certificate” to prove you provide 20+ hours of weekly care.
Can I claim Carer’s Allowance and Carer’s Credit together?
Yes. If you receive Carer’s Allowance, you normally get NI credits automatically. But if you do not claim Carer’s Allowance, you should apply for Carer’s Credit separately.