Up to one million pensioner families could be failing to claim Pension Credit
Pensioners could be missing out on an average of £4,300 a year from the Department for Work and Pensions (DWP). The latest data from the DWP shows that up to one million pensioner families could be failing to claim Pension Credit.
As reported by the Daily Record, up to 910,000 families who were entitled to receive Pension Credit did not claim the benefit, which means up to £2.5 billion went unclaimed. Pension Credit can provide a top-up for single people on the New State Pension who have a total weekly income below £227.10, or couples with a combined weekly income of less than £346.60.
Commenting on the latest Pension Credit data, Stephen Lowe, director at retirement specialist Just Group, said: “The figures show the huge sums of Pension Credit that are going unclaimed by many of the nation’s poorest pensioners, who are missing out on thousands of pounds a year of valuable extra income.
“The benefits system is complicated and anyone feeling the squeeze on their finances should check their entitlement to benefits. That includes people who have savings or own their own homes, which they think may make them ineligible for benefits.
“Our own research among over-65s found that four in 10 (40 per cent) pensioner homeowners had never checked their eligibility for State Benefits beyond the State Pension, that is more than twice the proportion of renters (15 per cent).”
Why are people not applying?
According to the DWP, older people may wrongly think they are not eligible because they:
- Have savings
- Own their own home
- May be working
- May be getting a small occupational pension
- May have been turned down in the past
Other factors may be that they:
- Do not want to be seen as needing to claim
- Feel that they’re able to manage
- Do not think it’s worth applying – as the amount they get will be very small
- Do not recognise themselves as a Pension Credit claimant
- Have not got around to it
- Think it’s a complex and confusing subject
- Already get other help and do not want to mess up the benefits they are getting
The DWP has also busted some common myths about the benefit below.
They do not think they will be eligible for Pension Credit
False – they can check the Pension Credit calculator online to determine whether they qualify.
They would get so little that it’s not worth claiming
False – DWP says the average Pension Credit payment is actually over £75 per week – that’s well over an extra £4,300 per year. Plus, getting Pension Credit can provide a passport to help with things like rent, Council Tax, Winter Fuel Payment, Pension Age Winter Heating Payment (Scotland only), Winter Heating Payment (Scotland only), Cold Weather Payments (not Scotland) and a free TV licence for people aged 75 and over.
They have savings, so will not qualify
False – DWP explains that people can have savings or another pension and still get extra money. Unlike other income related benefits like Universal Credit, there is no capital cut-off limit and for Pension Credit savings of under £10,000 are ignored.
They own their own home, so will not qualify
False – DWP explains that homeowners can get Pension Credit too and that almost half of the people who get Pension Credit own their own home.
They are not eligible for Pension Credit – it’s for “old” people
False – People can claim as soon as they reach the qualifying age, which is now State Pension age – 66 for both men and women.
They cannot get a State Pension, so they will not be eligible
False – DWP said that they may be entitled to Pension Credit – even if they’re not entitled to a State Pension.
They have been turned down for Pension Credit before, so it’s not worth applying again
False – DWP said that personal circumstances could have changed and their income or capital may have changed as a result. The first £10,000 of savings will be ignored when working out if someone can get Pension Credit.
It is too complicated and claiming is not worth the effort
False – DWP claims it has simplified the process and people can claim with one free phone call to the Pension Credit claim line. However, there are other ways to claim such as a paper claim form, which can be downloaded from the GOV.UK website or an online claim can be made – find out more here.
Quickest way to check eligibility for Pension Credit
Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK here.
Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 – lines are open 8am to 6pm, Monday to Friday.
