Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether he has made a recent assessment of the potential impact of Carers Allowance and State Pension being overlapping benefits on levels of pensioner poverty.

No such assessment has been made. Although there is no upper age limit to claiming Carer’s Allowance, it cannot normally be paid with the State Pension. It has been a long-held feature of the UK’s benefit system, under successive Governments, that where someone is entitled to two benefits for the same contingency, then whilst there may be entitlement to both benefits, only one will be paid to avoid duplication for the same need.

Although entitlement to State Pension and Carer’s Allowance arise in different circumstances, they are nevertheless designed for the same contingency – as an income replacement. Carer’s Allowance replaces some income where the carer is not able to work full time due to their caring responsibilities, while State Pension replaces income in retirement. For this reason, social security rules normally operate to prevent them being paid together. However, if a carer’s State Pension is less than Carer's Allowance, State Pension is paid and topped up with Carer's Allowance to the basic weekly rate of Carer's Allowance, which is currently £76.75.

Where underlying entitlement of Carer’s Allowance occurs (all entitlement conditions are met, but the overlapping benefit rule prevents payment), additional financial support may be available through Pension Credit, notably including the additional amount payable to carers. This additional amount is currently £42.75 a week – over £2,200 a year - and around 100,000 carers receive it as part of their Pension Credit award. It is paid to recognise the additional contribution and responsibilities associated with caring and means that lower income pensioners with caring responsibilities can receive more than other lower income recipients of Pension Credit. If a pensioner’s income is above the limit for Pension Credit, they may still be able to receive Housing Benefit.

The Government is committed to action that helps to alleviate levels of pensioner poverty. The State Pension is the foundation of state support for older people. In April 2023 the State Pension was increased by 10.1% and, subject to parliamentary approval, will be increased by a further 8.5% increase from April 2024. In 2021/22, there were 200,000 fewer pensioners in absolute poverty after housing costs than in 2009/10. As far as pensioner carers are concerned, additional financial support is already available, focussed on those in most need.