Home Finance Pension Credit take up increases but 850,000 still miss out

Pension Credit take up increases but 850,000 still miss out

by jcp
gawdo
  • Two-thirds (66%) of families that could receive Pension Credit were doing so in 2020. This is a 3-percentage point increase on 2019 figures.
  • There are up to 850,000 families who could receive Pension Credit who aren’t doing so.
  • Figures estimate £1.7bn of Pension Credit remains unclaimed – around £1,900 per year for each household.
  • There are also up to 260,000 pensioners who could claim housing benefit and do not do so.
  • The figures say approx. £1.1bn remains unclaimed which could boost household finances by up to £4,000 per year.

Today DWP published the latest income related benefit figures: Income-related benefits: estimates of take-up: financial year 2019 to 2020 – GOV.UK (www.gov.uk)

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown:

“Pension Credit take up continues to inch up but there are still up to 850,000 pensioner households missing out on this vital benefit. Pension Credit boosts the income of the poorest pensioners and acts as a valuable gateway to other benefits such as help with heating bills and NHS treatment. If you are aged over 75 you are also entitled to a free TV licence. It’s estimated each eligible household misses out on up to £1,900 per year by not claiming.

The data also shows around a quarter of a million pensioners could be missing out on Housing Benefit which could potentially boost their income by £4,000 per year.

These are enormous sums of money that could really boost people’s income in retirement, and it is vitally important that those who think they may be entitled to support check to see if they are entitled.

With Pension Credit many people think they are not entitled to it because they own their own home or have some savings – this is not the case and these misconceptions are standing in the way of many thousands of pensioners getting much needed support for their retirement.”

About Pension Credit

  • Pension Credit can top up your weekly income to £177.10 if you’re single and to £270.30 if you have a partner. You can qualify for more if you are already being paid Carer’s Allowance or Attendance Allowance.
  • Pension Credit claimants can also get help with council tax, NHS prescriptions and glasses as well as the potential for a free TV licence.
  • For more information go to Pension Credit: What you’ll get – GOV.UK (www.gov.uk)

About Housing Benefit

  • You may get help with all or part of your rent if you are on a low income.
  • There’s no set amount of Housing Benefit and what you get will depend on whether you rent privately or from a council.
  • How much you get depends on:
  • your ‘eligible’ rent
  • if you have a spare room
  • your household income – including benefits, pensions and savings (over £6,000)
  • your circumstances, for example the age of people in the house or if someone has a disability
  • To find out how to claim go to Housing Benefit: How to claim – GOV.UK (www.gov.uk)
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