The Department for Work and Pensions (DWP) has issued an important reminder to State Pensioners, with the Government warning that “far too many are missing out”. The department has urged hundreds of thousands of pensioners to check whether they can benefit from Pension Credit. Pension Credit is a means tested benefit is designed to help those over State Pension age and on a low incomes with living costs with a weekly top up. It can also soften the blow of housing costs such as ground rent or service charges, by factoring your home into the benefit award calculation. When you apply for Pension Credit the Department for Work and Pensions (DWP) calculates your income, calculating couples’ income together in joint pot, the UK Government website explains.
But the Government is keen to make sure the large numbers of people yet to take advantage of it do so. Analysis by the charity Independent Age found that in 2023/4 more than a million eligible older people on low incomes didn’t receive it, with billions left unclaimed. In its latest push to ensure people don’t miss out, the DWP says 660,000 leaflets will be posted through letterboxes in seven areas across the UK that have a high proportion of low-income pensioners. The DWP says the advice will guide pensioners through how to apply to Pension Credit, as well as how to support a family member with a claim.
It will also dispel common myths about eligibility, including that homeowners or pensioners with savings can’t claim it. According to the department, some 1.4 million pensioner households are already getting Pension Credit. Following a major awareness campaign last year, the DWP said it saw an extra 33,500 awards. The leaflets will be posted through letterboxes in Glasgow, Powys, Stockton-on-Tees, inland Cornwall, Birmingham, East Suffolk and Manchester, the department said. The DWP notes that Pension Credit is worth more than £4,500 a year on average. It represents a major boost for those on low incomes.
The Government also highlighted other forms of support pensioners can benefit from as cost-of-living pressures continue to bite, including the Winter Fuel Payment, Cold Weather Payments, Attendance Allowance and the State Pension, which is set to rise by up to £2,100 over the current Parliament.
Minister for Pensions Torsten Bell said: “Far too many pensioners are missing out on support they’re entitled to. Pension Credit is worth more than £4,500 a year on average and can make a real difference to people’s finances, while also opening the door to help with bills and other everyday costs.
“If you think you might be eligible, it’s worth checking. We want to make sure pensioners get the support they’re entitled to and don’t miss out on money that could help them in retirement.
Morgan Vine, Director of Policy and Influencing at Independent Age said: “Our analysis found that in 2023/4 more than a million older people on low incomes who are eligible for Pension Credit did not receive it, missing out on a combined £2.5 billion of life-changing support.
“Every day we hear heartbreaking stories of older people enduring financial hardship because they aren’t aware of Pension Credit, or that they qualify for the support. We welcome the DWP’s commitment to raising awareness and understanding of Pension Credit and look forward to continuing to play our part to tackle the issue of low take-up.”
The latest efforts come during the DWP’s Pension Credit Week of Action, aimed at dispelling common misconceptions about eligibility rules, and encouraging applications, alongside broader work to spread the word.
Pensioners in need of additional guidance and support in their retirement are also being urged to seek advice from a number of charities that can help, including Independent Age and Citizens Advice, the DWP says.
