The Department for Work and Pensions (DWP) has launched a new drive to encourage older people to claim Pension Scheme, as figures reveal the number missing out has surged
More than 900,000 pensioner households didn’t get a benefit they were entitled to last year – missing out on £2.5billion in total.
Latest figures from the Department for Work and Pensions (DWP) show the issue of people not claiming Pension Credit is also getting worse. The up to 910,000 who didn’t claim the benefit they could have got last year was up sharply from 760,000 the prior year. And the estimated amount that has gone unclaimed jumped from £1.5billion.
The government has responded by teaming-up with Age UK and Independent Age to send letters to 2,000 pensioners across England urging them to claim Pension Credit, worth on average around £4,300 a year.
It follows research that has revealed for the first time the regional disparities when it comes to claiming. Between 60% and 70% of potentially eligible pensioners in the North and London are claiming Pension Credit, while in the East and South this drops to around the mid-50% mark. Take up rates are highest in the North East at 71% compared to just 55% in the South West.
Pension Credit is a means-tested benefit for people over the state pension age who have a low income. It comes in two parts: guarantee credit and savings credit. You might be eligible for one or both parts. Pension Credit tops up your weekly income to £227.10 if you’re single, and £346.60 if you have a partner.
Savings credit is extra money if you’ve got some savings or if your income is higher than the basic state pension. It is available to people who reached state pension age before April 6 2016. You could get up to £17.30 extra per week if you’re single, and £19.36 extra per week if you’re a couple.
Even if your weekly income is more than the £227.10 and the £346.60 thresholds, you could still claim if you meet one of the following criteria: you’re a carer, you have a severe disability, you have certain housing costs such as service charges, or you are responsible for a child or young person who usually lives with you.
Claiming Pension Credit also opens the way to the other state-funded help. For example, you get free NHS dental treatment, and can get help with the cost of glasses and transport to hospital. If you get Pension Credit then you probably won’t have to pay council tax (unless other people live with you). And if you own your home, you might be eligible for a help with mortgage interest, ground rent and service charges. Plus, you will be eligible for the Winter Fuel Payment, Cold Weather Payment during particularly cold weather, and if you’re 75 or over, you can get a free TV licence.
To claim Pension Credit, you can either go online to gov.uk, or call the Pension Credit claim line on 0800 99 1234 ( they can fill in the application for you over the phone).
Morgan Vine, director of policy and influencing at the charity Independent Age, said: “Far too many older people on low incomes are still missing out on this vital financial support. It’s unacceptable that such vital support is failing to reach older people who need it most. Pension Credit can be truly transformative. It boosts income by over £4,000 a year and unlocks access to a wide range of additional entitlements, including free NHS dental care, the Warm Home Discount, and Housing Benefit to help with rent.
“While we welcome some of the new strategic approaches the UK Government is trialling, these statistics show action is needed more urgently than ever. We are calling on the UK Government to implement an all-entitlement take-up strategy that targets older people on low incomes and ensures they can access all the financial support they are entitled to.
“Crucially, any effective strategy must simplify the application process. Our research shows that the current system is too complex, acting as a major barrier to access. “Older people facing financial hardship shouldn’t be forced to navigate a confusing and time-consuming process just to receive money that has been set aside for them.”
