State pension age rise in July costing households up to £376.12 | Personal Finance | Finance

The increase in the state pension age will cost more than 25,000 UK households up to £134.82 a week after it kicks in in April and moves to the next stage this July, according to a charity; On top of that, he will miss out on state pension payments of up to £241.30. A warning has been issued by Carers UK about the knock-on effect of the current state pension age increase from 66 to 67, with another set of birth dates set to be affected this month.

The change is being phased in gradually between April 2026 and March 2028. Rather than a stark cut, state pension claimants will see their initial claim advanced by one month, reaching age 67 for all by 2028. But Carers UK says the change will have unintended consequences for unpaid carers, many of whom are not working due to their caring responsibilities.

The increase in the pension age will cost around 26,000 unpaid carers £7,011 each year, or £134.82 a week. As well as missing out on this money, they will not be able to receive a state pension of up to £241.30 until later.

Those born between April 6, 1960 and May 5, 1960 received the state pension for 66 years and 1 month; This means they are eligible to receive a state pension between 6 May and 6 June 2026; However, if there was no age increase, this date would be April.

Then, those born between May 6 and June 5, 1960 will receive their pension at age 66 years and 2 months, that is, between July and August 2026. This is the second group of state pensioners affected by the changes.

Those born between June 6, 1960 and July 5, 1960 will receive the pension of 66 years and 3 months between September and October 2026.

Those with full National Insurance registration will be entitled to a maximum pension of £231.40 per week.

Emily Holzhausen CBE, Policy and PR Director at Carers UK, said a working-age carer receiving Carer’s Allowance, Carer’s Element and Universal Credit was entitled to £138.68 a week, compared with £273.50 for a carer who had reached state pension age.

Many unpaid carers spend a significant amount of time caring and must provide care for at least 35 hours a week to be eligible for Carer’s Allowance. Without the right support, the demands of the role often lead carers to reduce their working hours or leave paid work altogether, she said.

Carers UK is calling for a review of Carer’s Allowance to ensure it meets the needs of carers and recommending carers receive an increased payment for at least two years before retirement to reduce the impact of poverty in later life.

Ms Holzhausen said: “Thousands of unpaid carers provide essential support to their families and friends long before they reach retirement age. “As one of the least retired groups in the UK, many have no choice but to care due to limited alternative support.

“We need to ensure that carers are appropriately supported as they approach retirement, particularly given the increase in the government pension age. “This change means that those approaching retirement age will experience significant losses, especially women, who make up the majority of those affected.

“It is vital that Carer Allowance is reviewed and strengthened, including more support in the years before reaching retirement age, so that those who dedicate their time to caring for others are not left in poverty.”

Last month the government announced that the debts of tens of thousands of unpaid carers affected by confusing guidance on their earnings would be reduced, canceled or repaid through a reassessment of their cases.

The move comes after ministers accepted 38 of 40 recommendations made by the independent Sayce Review into Carer Allowance overpayments in November 2025.

From April 2015 to September 2025, guidance on how to average irregularly fluctuating earnings was vague and did not accurately reflect the law.

Caregivers who juggled paid jobs with at least 35 hours of unpaid care accumulated debt without realizing they had exceeded the weekly earnings limit. This was a failure of the system and this government is taking action to fix it.

The DWP will now examine more than 200,000 cases. Nearly 25,000 carers were able to receive a refund where their debt was reduced, canceled entirely or the money had already been paid back. In most cases the DWP holds all the information it needs. Carers do not need to contact the DWP; The department will contact you if anything further is needed.

The change comes after the government increased the Carer Allowance cliff limit to £204 a week from April 2026; This means some unpaid carers can now earn around £10,000 a year and still be eligible for this benefit.

Work and Pensions Minister Pat McFadden said: “We have inherited a system that has left unpaid carers accumulating debt through no fault of their own, and we are determined to fix it.

“We have therefore accepted the vast majority of the recommendations of the Sayce Review and are now beginning to implement them, initiating a reassessment exercise to review cases affected by the unclear guidance.

“Carers are vital to our communities and we are determined to take action to rebuild their trust.”