09/01/2024 | Press release | Distributed by Public on 08/31/2024 17:06
The Department for Work and Pensions (DWP) to launch Pension Credit Week of Action to boost take-up of vital benefit
Hundreds of thousands of pensioners are being urged to apply for a benefit that could be worth on average £3,900 per year as the Department for Work and Pensions (DWP) is launching a campaign to increase Pension Credit take-up on Monday 2 September.
With as many as 880,000 pensioners missing out, the Pension Credit Week of Action aims to spread awareness and increase claims for Pension Credit, which from this year will also automatically passport eligible pensioners to receive the Winter Fuel Payment.
Joining forces with charities, broadcasters, Local Authorities, and a range of partners, the campaign will tackle myths that may prevent people applying, for instance having a small private pension, savings or owning their own home.
Families, friends and neighbours are being encouraged to reach out to retired family members to encourage them to check their eligibility and apply. 21 December is the last possible date to make a successful backdated claim in order to receive the Winter Fuel Payment.
While around 1.4 million pensioners are already receiving Pension Credit, up to an estimated 880,000 households are eligible for the support but are not claiming it.
Chancellor, Rachel Reeves, said:
The £22 billion blackhole inherited from the previous governments means we are having to take tough decisions now to fix the foundations of our economy - including making the Winter Fuel Payments available to those most at need.
1.3 million pensioners are already going to get help with fuel bills this year because they're claiming pension credit - but thousands more are eligible. So, if you know someone who could get pension credit and help with their fuel bills, now is the time to help them apply for pension credit.
Work and Pensions Secretary, Liz Kendall said:
Thousands of pensioners are missing out on Pension Credit worth on average £3,900 per year. That needs to change.
It's easier than ever to check if you are eligible, including with our online calculator, and if your circumstances have changed since the last time you looked - I urge you to check again.
Friends, families and neighbours can also encourage their loved ones to apply, so that they are not missing out on this vital benefit.
Energy Secretary Ed Miliband said:
The legacy of failure on energy policy we have inherited means energy prices are set to rise in autumn. We must ensure that pensioners in the greatest need get access to help with rising bills.
We will do everything in our power to increase take up of Pension Credit to the 880,000 households who are yet to claim - opening the door to other vital support such as the Winter Fuel Payment.
The government will also continue our mission to deliver clean power by 2030, helping to finally give families the energy security they deserve and our country the energy independence we need.
Pensioners whose weekly income is below £218.15 for a single person or £332.95 for a couple should check to see if they are eligible for this support which is worth £3,900 a year on average, using DWP's online calculator.
People with a severe disability, carers and those who are responsible for a child or young person who lives with them could get more. Pension Credit can also include extra amounts for certain housing costs, such as ground rent or service charges.
This work is part of a wider plan to ensure economic stability for pensioners by protecting the Triple Lock and supporting households with their energy bills through the £150 Warm Home Discount and the Warm Homes Plan - upgrading millions of homes this Parliament.
Over the next five years, more than 12 million pensioners could see their State Pension increase by over a thousand pounds as a result of the commitment to the Triple Lock.
Pension Credit recipients by region (as of February 2024):
North East | 73,883 |
North West | 175,179 |
Yorkshire and The Humber | 118,633 |
East Midlands | 95,767 |
West Midlands | 130,427 |
East of England | 110,017 |
London | 190,496 |
South East | 147,763 |
South West | 111,251 |
Wales | 80,927 |
Scotland | 125,136 |
It's a national tragedy that nearly a million eligible low-income pensioners who've paid into the system for years are still missing out on the crucial Pension Credit financial lifeline - a better name for it would be the State Pension Top Up.
So whatever your age, take a second to understand how it works, so we can all ensure the message is spread to every nook and granny (and grandpas too). Especially as the government has just severed Winter Fuel Benefits eligibility for millions, yet if you claim Pension Credit you'll still get it.
While for most single pensioners, you need total weekly income, including from savings, under around £218 (pensioner couples under £333) to be very likely to qualify, my rule of thumb is spend a few minutes to check even with weekly income up to £235 (pensioner couples £350) as there's still a chance some may be eligible.
"Pension Credit can pay out £1,000s a year, but even if it's only going to pay you thruppence, still claim it! As once you get it, it's a gateway benefit that opens the door to other entitlements - including council tax reductions, free TV licences (if age over 75) dental and optical support and more.
> I would encourage anyone on a tight budget to consider an application for Pension Credit.
It can be claimed over the phone and could be the gateway to a range of valuable additional benefits, including reductions in energy bills, extra support when the temperature drops, free TV licences for those aged 75+ and continued receipt of the Winter Fuel Payment.
Even if you are not sure if you will be entitled, it is worth putting in a claim, especially for those who are disabled or carers and might be entitled to additional amounts.
Parkinson's UK is pleased to support the DWP in raising awareness of Pension Credit, which is a vital resource for older people on low incomes living with conditions like Parkinson's.
We know that very few people with Parkinson's and their carers who are entitled to Pension credit, actually claim it. Our recent survey found that only 6% of eligible respondents received Pension Credit, leaving many without access to additional entitlements that could ease the financial strain of living with Parkinson's.
With the Winter Fuel Payment soon only being granted to those receiving Pension Credit, it's more important than ever for everyone of pension age and above to check whether they are eligible to claim it.
This Week of Action is crucial to raise awareness of Pension Credit and we urge everyone of pension age to check their eligibility to ensure they can access the support they are entitled to.
Pension Credit is a valuable benefit for anyone over State Pension age who is on a low income. But with an estimated 880,000 people missing out, it's important that anyone who thinks they may qualify for it, or anyone who thinks a family member may qualify, puts in a claim.
Pension Credit not only provides additional tax-free income, but, because it's a 'gateway' benefit, means that people who are eligible may also qualify for help with housing costs such as rent and council tax, as well as energy bills through the Winter Fuel Payment and Cold Weather Payment.
Our research shows that one in five people over State Pension age are living on the State Pension alone, with many thousands not entitled to the full amount for a variety of reasons. Pension Credit could make a big difference to their standard of living in retirement.
If you have a family member or friend over State Pension age, they could be missing out on tax-free payments worth thousands of pounds a year.
> Pension Credit can provide vital support to low-income pensioner households, but many people don't claim it.
If you think you, or someone you know, might be eligible, call the Pension Credit claim line, write to the Pension Service or put in an application on the Government website. Help spread the word; it could make a world of difference to someone.
> Pension Credit Week of Action is the perfect opportunity to remind our customers of the vital support available to them. We are committed to ensuring pensioners are informed about their eligibility for Pension Credit and the additional help it provides. Our 'You Pay: We Pay' initiative further supports this by doubling contributions to help manage energy costs. By reaching out directly to customers who may be struggling, offering access to grants through the British Gas Energy Trust, and offering face-to-face advice through our Post Office partnership, we aim to make it easier for pensioners in need to access essential support.
One in three people who are entitled to Pension Credit don't claim and, if you're one of them, you could be missing out on extra income per year.
It's important to find out if you're eligible for Pension Credit as it can not only help with your day-to-day living costs, but it can also entitle you to other grants, benefits and discounts. For example, households claiming Pension Credit can get a Winter Fuel Payment and Housing Benefit.
> With the Pension Season upon us, there is never a more fitting time to check whether or not you could be eligible for Pension Credit.
You might be surprised - if you own a home, or have savings - you could still be entitled to the payment. It can also open the door to additional help with housing costs and heating bills, etc. Hundreds of thousands of people of people are missing out, so I'd urge everyone to take a few moments to check.
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