Pensioners may be missing out on an array of support because they are believing incorrect information
Countless Brits may be missing out on thousands of pounds each year after the age of 66 from one vital DWP benefit. That’s because of ‘embarrassment’, mistaking eligibility requirements and a widespread lack of awareness, it is claimed. A new report revealed the misconceptions holding pensioners back from claiming what they are entitled to. Pension Credit is a vital form of support for people over the state pension age on a low income. It provides extra money and other support like council tax reductions, free TV licences for those over 75 and help with NHS dental treatment.
A new Verian report found the biggest issue holding people back from their entitlement was many mistakenly believed they were not eligible for a range of reason. Some of the common, but incorrect, beliefs included thinking PIP, savings or your partner’s employment status made them ineligible.
The main eligibility criteria for Pension Credit is that you must be over the state pension age, living in England, Scotland or Wales and have a low income which is generally capped at £227.10 per week for individuals and £346.60 per week for couples. However, you can still qualify if your income is higher if you have a disability, savings, housing costs or care responsibilities.
You can have up to £10,000 in savings and investment without it affecting your Pension Credit. Each £500 over this threshold will count as £1 a week for your income calculations, so you can still claim the benefit with savings over this amount.
The report found two other leading issues holding people back from their entitlement was a lack of awareness, with many claiming they ahd ‘never heard’ of Pension Credit and its passported benefits. Another common reason was the stigma around claiming benefits and state support made people reluctant to claim. It caused people to feel ‘too proud’ and ‘embarrassed’ to get support sooner.
DWP analysis last October showed less than 70% of eligible pensioners in England, Scotland and Wales were claiming their Pension Credit entitlement. Those that had made their claim were receiving £82.71 each week on average or £4,300 a year.
Pension Credit gives you extra money to help with your living costs if you’re over State Pension age and on a low income. Pension Credit can also help with housing costs such as ground rent or service charges. If you are eligible for Pension Credit but may not receive payments from it, for example if your savings are too high, it may still be worth making your claim in order to get the passported benefits it holds.
Other common reasons the report found for qualifying people not claiming Pension Credit included some that felt they were managing financially. One recipient over the age of 75 who was entitled to the benefit but not claiming it said: “With the position I’m in, if there’s a fund out there for more deserving people, they should be the one to receive it… if they need it more than me, I think they should have priority.”
Others had a distrust around getting government support, as one new Pension Credit recipient over the age of 75 said: “I was wary of claiming for it because I didn’t know if it would affect my pension… if the government gives you some money, they usually take it off you somewhere else.”
For more on Pension Credit, visit the gov.uk web page.
