A third of households miss out on Pension Credit
31 Jul 2024
In a world where many elderly individuals struggle to make ends meet, Pension Credit offers a lifeline. This government benefit is designed to provide extra money to help with living costs for those over State Pension age and on a low income. On average, it can be worth around £3,500 a year. Yet, despite its importance, many pensioners are missing out.
The Stark Reality:
Shockingly, while 1.6 million pensioners live in poverty, almost £3 billion of benefits aimed at older people on low incomes go unclaimed annually. The latest figures from the Department for Work and Pensions (DWP) reveal that over a million pensioner households are missing out on Pension Credit. This equates to around 39% of those who are entitled to receive it. More than a third (37%) of eligible households are failing to claim this crucial support.
Barriers to Claiming:
One might wonder why so many are not claiming a benefit they desperately need. The reasons are manifold. Firstly, the complexity of the benefits system can be daunting. Many people are simply unaware that they qualify for Pension Credit. Others might believe they wouldn't be eligible or are put off by the application process. There is also a sense of reluctance to ask for help, which can prevent pensioners from accessing the support available to them.
Why Pension Credit Matters:
Claiming Pension Credit is about more than just securing extra income. It can unlock a range of additional benefits, including help with heating costs, housing benefits, dental treatment, and even free TV licenses for those aged 75 and over. Missing out on Pension Credit means missing out on these critical supports that can significantly ease the financial burden on pensioners.
The Importance of Up-To-Date Information:
Another issue is that some pensioners who do receive Pension Credit may not be getting the full amount they are entitled to. This often happens because they haven't updated their financial information with the DWP. For instance, if their savings have decreased, they could be eligible for a higher amount of Pension Credit. It's estimated that the DWP could be paying out an extra £80 million if it had up-to-date information about claimants.
Government Initiatives and How to Claim:
The government has recognised this issue and has run awareness campaigns to encourage more people to claim Pension Credit. A recent Freedom of Information request indicates that these campaigns are starting to make a difference, with the number of claimants on the rise.
For those unsure about their eligibility, checking is straightforward. You can verify your eligibility online, over the phone, or by post. To claim, visit gov.uk or call the Pension Credit claim line at 0800 99 1234. The lines are open Monday to Friday, 8am-6pm. When applying, you'll need your National Insurance number, information about your income, savings, and investments, and details about your financial status on the date you wish to backdate your application to (usually three months ago or the date you reached state pension age).
