The Department for Work and Pensions (DWP) and Labour Party government have confirmed that the State Pension age will rise to 67 between 2026 and 2028. This change is set to cost UK households, particularly unpaid carers, an average of £135 per week.
Approximately 26,000 unpaid carers—individuals who look after family members or friends and often cannot work due to these responsibilities—will be forced to remain on working-age benefits for an additional year. This extension is projected to result in a collective loss of around £182 million.
Emily Holzhausen CBE, Director of Policy and Public Affairs at Carers UK, highlights the stark financial disparity unpaid carers will face. Many will lose out on about £7,011 annually (£134.82 weekly) because the benefits available before reaching state pension age are substantially lower than those provided afterward.
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Carers UK’s analysis reveals that a working-age carer receiving Carer’s Allowance, the Carer Element, and Universal Credit currently receives about £138.68 per week. In comparison, carers who have reached the State Pension age can claim approximately £273.50 weekly—a significant difference that underscores the financial strain imposed by the pension age increase.
Moreover, the change disproportionately impacts women, who comprise 63% of carers aged 60 to 66 receiving Carer’s Allowance. This demographic disparity raises concerns about the gendered economic consequences of the policy shift.
Holzhausen emphasizes, “Thousands of unpaid carers provide essential support well before reaching pension age, often with limited alternatives due to being one of the most under-supported groups in the UK. With the State Pension age rising, it’s critical that carers receive the recognition and financial backing they deserve to prevent them from falling into poverty.”
She calls for a comprehensive review and strengthening of Carer’s Allowance, including enhanced support during the years leading up to pension age. Ensuring carers are adequately supported will be pivotal in safeguarding their financial wellbeing as retirement approaches.