Recommendation 23

HM Government Accepted in Part

The Government acknowledges that the current system which requires a person to claim Carer’s Allowance (CA)—which for most pensioners will not be payable alongside the State Pension—in order to qualify for an additional amount in Pension Credit is confusing and potentially may mean a delay for some carers in getting all the financial support available to them. We are considering what more can be done to improve the link between Carer’s Allowance and Pension Credit as well as ways to improve Pension Credit application routes to better highlight to pensioners with caring responsibilities the information they need to make a claim. In Universal Credit, a carer does not need to make a claim for CA in order to qualify for the carer element, but it should be noted that they still need to satisfy the CA entitlement conditions (apart from the earnings rule) to get the extra amount. Adopting a similar approach in Pension Credit would require a thorough redesign of how DWP administers and decides claims to Pension Credit for carers. Adding questions to the Pension Credit application about caring responsibilities would lengthen the claims process and add complexity. It would also potentially require Retirement Services staff to acquire expertise on the eligibility conditions for CA, or existing staff with that expertise would need to be redeployed from the Carers Allowance Unit. As indicated during the Committee hearing, the Government has no objection in principle to building a carer assessment into Pension Credit. But it would require legislative change and careful planning to ensure, for example, that Pension Credit staff are able to safeguard the position of the person with care needs, as is currently the case with colleagues administering Carer’s Allowance. This is because the current system is also there to protect the disabled person – DWP staff need to make sure that the person who is presenting themselves as a carer is providing the care to a disabled person, and that another person is not already providing that care. In considering any future changes we will want to ensure we take account of any relevant lessons from the experience of implementing the carer element in Universal Credit. The upper age limit for entitlement to Universal Credit is State Pension age (currently 66), and claimants can remain on Universal Credit until the end of the assessment period in which they, or the youngest partner if in a mixed age couple, reach this age. In the lead up to a Universal Credit claimant reaching State Pension age, they are made aware of potential entitlement to State Pension and Pension Credit. The Universal Credit system will send the claimant a journal message four months before their award is due to end. This message explains that their Universal Credit award will be ending, and signposts them to State Pension. It also makes them aware that they may be eligible for other pensioner benefits, such as Pension Credit, and provides a link to further information on this. This message is then repeated one month before they reach State Pension age. In addition to these journal messages, at the three month point before reaching State Pension age, the system will generate action for the DWP agent to complete. If the claimant has not applied for their State Pension, they will be contacted and offered support and advice to make an application. This includes signposting to Pension Credit where appropriate. Further support is available to eligible over 50s on Universal Credit, through Midlife MOTs, delivered in Jobcentres which provide an opportunity to review health, finances and skills and signposts to suitable support, such as Pension Credit. There is also a digital offer available to everyone, which signposts people to pension and benefit information. All citizens are also sent a letter inviting them to claim their State Pension around four months before they reach State Pension age. This letter advises how State Pension can be claimed and includes further information relating to the State Pension. It also includes signposting to Pension Credit under a section titled “If you are on a low income.”