Written by Rachel Vahey, AJ Bell head of policy development
At a time when the cost-of-living crisis is really beginning to pinch it’s imperative people get any Government financial help they are due.
Despite several past efforts to spread the word, it’s a sad fact that just not enough people are claiming Pension Credit – an alarming 850,000 eligible pensioners are estimated to be missing out.
So it’s welcome news the DWP is going to beef up its efforts to get this message out by employing the support of charities and broadcasters. This approach should help shift the dial and mean more households are able to benefit not only from a Pension Credit payment, but also the other valuable payments that go with it – including help with heating costs and free TV licenses.
The DWP has certainly upped the anti on this campaign. A Day of Action last year has turned into a Week of Action this year. And as that Day last year doubled the number of Pension Credit claims, expectations are running high that this year’s efforts will be even more successful.
But the DWP has realised it cannot rely solely on pensioners taking the initiative. It is planning a trial this summer where it will write directly to potentially eligible households inviting them to claim. This direct appeal should nudge many more households to apply.
However, the Government could do more. A Freedom of Information request last Novembershowed a backlog in processing Pension Credit claims. Administrative snarl ups shouldn’t stop pensioners from getting the help they need as quickly as they could. The government also needs to keep striving to make sure people are clear about when they can claim, myths are dispelled, and the claim form is as simple as possible.”
Pension Credit explained
Pension credit is a key benefit provided by the state which often tends to go unclaimed by lower income retirees.
In 2023/24, if you are over state pension age (66), single and your income is less than £201.05 a week then Pension Credit will top you up to that amount. For a couple, the combined income figure is £306.85.
In relation to Pension Credit, your income includes your state pension, other pensions, employment or self-employment earnings and most social security benefits. As with the state pension, it is up to you to claim Pension Credit.
For those who are entitled to receive it, claiming pension credit is also really important because it acts as a gateway to other benefits, such as help with heating costs, housing benefit, dental treatment and free TV licenses (if you are aged 75 or over).
In addition, those who claim pension credit currently qualify for cost-of-living payments from the government.
