Hundreds of thousands of state pensioners could be missing out on an income boost worth more than £2,000, a new research suggests. Policy in Practice’s latest report estimates billions of pounds in benefits is going unclaimed from the Department for Work and Pensions (DWP), and Pension Credit is one of them.
The report suggests as many as many as 761,000 people could be eligible to claim Pension Credit in Great Britain but aren’t, which is resulting in a missed income boost worth £2,121 on average. The report reads: “Four in 10 pensioners eligible for Pension Credit aren’t claiming it, missing out on over £2,000 a year. This affects their financial wellbeing, worsens health outcomes and deepens inequality.”
The social policy analytics company suggested that amongst “complexity” and “stigmas”, the main reason why benefits might go unclaimed is that people are simply unaware of what they can claim and how.
Pension Credit is a tax-free income-related benefit from the DWP. It aims to top up people’s state pension to give them a more reasonable standard of living. It can be worth as much as £4,200 per year, depending on a person’s circumstances.
It also unlocks additional financial support many may not know about, such as a free TV licence or Council Tax reductions.
Who is eligible to claim Pension Credit?
To claim Pension Credit, a person must live in England, Scotland or Wales and have reached the state pension age (currently 66 and over). They or their partner must also be receiving housing benefits.
If this applies, the person must then work out their total weekly income. This should include the state pension, other pensions, earnings from employment and self-employment, and most social security benefits, such as Carer’s Allowance.
Not all benefits are counted as income. For example, the following are not counted and shouldn’t be included in the calculation:
- Adult Disability Payment
- Attendance Allowance
- Christmas Bonus
- Child Benefit
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Social fund payments, such as the Winter Fuel Allowance
- Housing Benefit
- Council Tax Reduction.
People are most likely to be eligible if their total weekly income is roughly under £230. However, if their income is higher, they might still be eligible so it’s worth using the Government’s calculator to find out.
To apply for the benefit, people can reach the helpline by telephone on 0800 99 1234 or by textphone on 0800 169 0133. They can also apply online here.
