Improving Pension Credit uptake has never been more urgent
I retired from my career as a nurse when I was 56... I have many health issues, some caused by the malnutrition I suffered during the war... I was given a low pension. I often had to choose between eating or turning on the heating.
Anisah, 86
I was scrimping and scraping. I couldn’t afford to put the heating on, so would sit wrapped up in clothes... Pension Credit has been amazing and made a huge difference to me.
Yvonne, 76
I’m on Pension Credit, which is an essential top-up for somebody without savings. Before I spoke to the Independent Age Helpline, I didn’t know this existed. You don’t know who to ask for help.
Veronica, 82
As the cost-of-living crisis takes hold, people in later life with limited income are desperate for immediate and meaningful action to help with living costs.
Older people are often stereotyped as wealthy, but we know that people in later life are a varied group, and not everyone is enjoying a financially secure retirement.
Our new research showed that 40% of older people spent at least one year in poverty between 2010 and 2019, and the biggest reason people entered and exited poverty past State Pension age was changes to social benefit income. The cost-of-living crisis requires emergency measures to make sure people on low incomes are not left out in the cold – but there is existing support available. Pension Credit has the potential to lift 440,000 older people out of poverty, yet still has the lowest uptake of any income-related benefit. In 2019–20 £1.7 billion set aside to help older people on low incomes didn’t reach them.
Targeted awareness raising is part of a strategic approach, and we know MPs are making huge efforts to tell their constituents about this money. The government also recently launched a new Pension Credit awareness campaign, and the Household Support Fund (HSF) – additional funding from the Treasury – presents another opportunity to get this money to the people who need it.
We believe local authorities should be able to use some of the HSF to pay for income maximisation schemes to make sure people get the money they are entitled to.
Improving uptake has never been more urgent. It would not only provide more older people with a sustainable income but could be the key to unlocking additional support in times of crisis.