More than a million OAPS missing out on vital cash
PENSION credit is arguably the single most important state benefit for retirees, dragging millions out of poverty by giving them an extra £30 a week on average. Successful claimants also get support with heating, housing, caring duties, council tax and the TV licence. Yet incredibly, more than a million fail to claim.
Pension credit will prove its worth as next year’s triple lock state pension hike is scaled back and the cost of living surges.a harsh winter lies in wait but a successful claim could make life a lot easier for vulnerable elderly people.
Campaigners are calling on people to check whether older family members, friends and neighbours are eligible and need help claiming, as many are confused by what support is available. By helping out, you could transform somebody’s final years.
CREDIT DUE
Pension Credit is a means-tested benefit that tops up incomes of the poorest retirees to £177.10 a week for single people and £270.30 for couples. Claiming it can turn lives around, yet an incredible £1.8billion sat unclaimed in 2019.
More than a million people, a third of those eligible, could claim on average £1,600 a year in extra income, or around £30.77 a week.
Charity Independent Age has been calling on the Government to boost Pension Credit take-up since 2019.
Chief executive Deborah Alsina said it could lift three-in-10 pensioners out of poverty and reduce severe poverty by half: “Pensioner poverty has been rising since 2012, forcing many to choose between putting the heating on or having something to eat because their pension doesn’t cover the essentials.”
The UK has one of the least generous state pensions in the developed world,
Alsina said.
TOO PROUD
Pensions campaigner Baroness Ros Altmann said take-up of Pension Credit is lowest of all means-tested benefits – 40 per cent do not claim.
Barriers to take-up include complexity, form-filling aversion, reluctance to divulge information and pride. She said: “It is well-known that pensioners find form-filling offputting, are often too proud to apply for help, or wrongly believe they are not eligible.”
You may still be eligible for small amounts of Pension Credit, even if you have up to £10,000 in savings, Altmann added.
Many eligible homeowners fail to claim because they wrongly assume they will not be able to get it.
There is another huge reason why people should claim. Pension Credit acts as a gateway to a host of other retirement benefits worth thousands of pounds a year, she said.
“As well as guaranteeing single pensioners get at least £9,209 a year, a successful application also gives them extra help with housing, heating, council tax, health costs and other bills too,” Altmann added.
This means that even if you can only claim a tiny amount of Pension Credit, you must do so. “Otherwise
you may also lose out on extra benefits including the £140Warm Home Discount, additional money for carers, council tax, dental or other health treatments and even TV licences for over-75s,” she said.
TIME TO CARE
Pension Credit claimants with a disability may get an additional £67.30 a week if they qualify for attendance allowance or the middle or highest rate of the disability living allowance care component.
Carers, the severely disabled or those responsible for a child or young person might get extra help.those claiming carer’s allowance could get an extra £37.70 a week, for example.
Claimants may also get Housing Benefit if they rent, or support for mortgage interest if a homeowner.
They may also qualify for council tax reduction, a free TV licence if 75 or over, help with NHS dental treatment, glasses, transport costs for hospital appointments and heating costs.
‘We should rally
to help the elderly claim what they are due, many are confused about
help available’
FREE HELP
Stephen Lowe, retirement specialist at Just Group, said
200,000 are failing to claim Housing Benefit towards their rent, while council tax reduction and Disability Living Allowance often go unclaimed.
Many pensioners know about the free bus pass, free prescriptions,winter Fuel Payment and possible freetv licence but now they need to widen their knowledge. He added: “Higher bands ofattendanceallowance and Disability Livingallowance are worth £89.60 a week, yet too many over-65s know nothing about them.”
Lowe said you can find a list of free state benefits calculators at Gov.uk/ benefits-calculators: “Local councils provide information on financial help to pay rent or council tax, while Moneyhelper.org.uk and charities such as Citizens Advice and Age UK are also good sources of assistance.”
The Government also provides a free, independent and impartial guidance service called Pensionwise. Find out more at Moneyhelper or call 0800 138 3944.
Altmann is calling on everyone who knows older people to suggest they check their eligibility. Claim Pension Credit by phone, post or online at Gov.uk.the Pension Credit phone line is 0800 99 1234. Helping somebody claim could make a huge difference to their life.