60,000 hit by giant pension credit backlog

ALMOST 60,000 pensioners are being forced to wait months to receive muchneeded pension credit, a Freedom of Information request shows.

Widespread government delays mean hard-up elderly people struggling to make ends meet as costs rise have been left without the monthly top-ups.

The number of claims surged to record highs after the Department for Work and Pensions (DWP) launched a campaign calling for pensioners to apply for pension credit. However, it has been criticised for being unprepared and unable to cope with the resulting rise in applications.

Pension credit is extra money for pensioners who qualify, to bring weekly income up to a minimum amount.

Between April and August, 111,550 successful pension credit claims were made, according to DWP data. But just 33 pc of these have been paid, the figures obtained by stockbroker AJ Bell reveal.

Meanwhile, 58,500 claims made during that period are stuck in a backlog.

Tom Selby, of AJ Bell, says the huge delays risk undermining efforts to boost take-up of the valuable benefit.

‘It is vital the DWP gets its house in order and processes these outstanding claims as soon as possible,’ he says. About one in ten of the 850,000 eligible pensioners claim the benefit, with most missing out on a share of £1.7 billion.

The Government’s cost-of-living support payments made this winter are another incentive for claiming pension credit. A successful application made by December 18 could qualify someone for a £324 cost-of-living payment.

This is because pension credit claims can be backdated for up to three months, provided entitlement conditions are met during that period. Pension credit tops up weekly income to a minimum of £182.60 for single people and £278.70 for couples. Those caring for a relative can get an extra £38.85 a week, and disabled pensioners can claim an extra £69.40.

You are eligible for the benefit if you and your partner have reached state pension age — currently 66 — and one of you receives housing benefit. Your pension savings will count towards your eligibility. For savings above £10,000, every £500 over that amount counts as £1 a week income.

A DWP spokesman says: ‘Additional resources are being deployed to ensure we deal with the increase as quickly as possible, while successful claims and arrears will be paid accordingly to ensure those who are entitled do not miss out.’