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Pension Credit claims boost but 760,000 families still miss out

Pension Credit claims boost but 760,000 families still miss out
Matt Browning
Written By:
Posted:
10/10/2024
Updated:
15/10/2024

Almost 760,000 families who were entitled to Pension Credit didn’t claim the benefit in the last financial year, official Government data shows.

There was a higher take-up versus the previous year, with 65% of all eligible pensioners receiving the financial support, compared to 63% by the end of March 2022.

The amount claimed on Pension Credit was 78% of the total amount available, which was also up on the 73% received in the previous year, according to the Department for Work and Pensions (DWP).

More people also claimed housing benefits compared to last year; 83% of pensioners entitled to the payment received it, a rise from 79% the year before.

The increase in people getting the support they are entitled to follows the recent surge in claims made since the Winter Fuel Payment announcement.

Since 29 July, when the Government announced the £200 benefit would be means-tested, weekly claims to the DWP doubled from pensioners.

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Indeed, since the controversial measure, which will hit four in five pensioners already on the breadline, there were 38,500 claims – more than twice the 17,900 in the five weeks up to the announcement.

To receive this year’s payment, those over the state pension age will need to be in receipt of Pension Credit, Universal Credit, Income Support, income-related Employment or Support Allowance, or Jobseeker’s Allowance.

Those over 80 years old who receive any of those benefit supports will be eligible for the higher tax-free cash boost of £300.

The reason given by Chancellor Rachel Reeves regarding the cut was a “£22bn black hole” in public finances left by the previous Conservative Government.

‘Previous campaigns derailed by pandemic’

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Boosting take-up of Pension Credit has been a major problem that has proven tricky to crack, with previous campaigns being derailed by the pandemic. However, there are signs that progress is being made, with take-up creeping up to 65% from 63% the previous year.

“It was during this period that Pension Credit claimants were entitled to payments designed to help see them through the punishing cost-of-living crisis. However, given the scale of the crisis, it’s surprising that take-up didn’t increase far more.”

Morrissey added: “Looking through more recent data shows that we may be in line for more of an uptick, though. The recent restriction of the Winter Fuel Allowance to people on benefits such as Pension Credit has garnered many headlines, with people urged to check if they can put in a claim.

“Government data shows a huge surge in the number of Pension Credit claims made in the weeks after the announcement, so the message is getting through. Not all these people will make a successful claim, but it’s to be hoped that we will see this surge continue over the coming months and the gap can start to meaningfully close.”

How to claim Pension Credit

Not only can Pension Credit lead to the Winter Fuel Payment, but it will also mean cheaper dental care, housing costs and service charges from your landlord. Over-75s can also receive a free TV licence should they be eligible.

In 2024/25, if you are over the state pension age (66), single and your income is less than £218.15 per week, then Pension Credit will top you up to that amount. For a couple, the combined income figure is £332.95.

You can claim for up to four months before you reach the state pension age of 66 years old. There is also the opportunity to make a backdated claim for three months, but there is a deadline of 21 December to do so.

A Pension Credit claim can be made online, by post or over the phone (0800 99 1234).