DWP reveals up to 760,000 families missing out on pension credit worth £3,900 a year – see if you can claim --[Reported by Umva mag]

HUNDRED of thousands of families are missing out on vital pension credit payments worth up to £3,900 annually, according to new figures from the Department for Work and Pensions. The latest statistics reveal that up to 760,000 families entitled to pension credit did not claim it during the financial year ending in 2023. DWP statistics have revealed up to 760,000 families are missing out on pension credit This is a slight improvement from the previous year when around 870,000 families were eligible but didn’t take up the benefit. Pension credit, a means-tested benefit designed to top up the income of the poorest pensioners, is becoming increasingly important as it is now linked to other crucial support. In particular, those claiming pension credit are eligible for the winter fuel payment, which has become more restrictive following recent government changes. The benefit goes to those who’ve reached State Pension age, which is currently 66, whose weekly income is less than £201.05 if you’re single, or £306.85 for couples. Those who have a higher income may still be eligible if they have a higher income but have others costs like housing, a disability, or even savings. Claiming Pension Credit can also unlock extra help, including, a free TV licence if you’re over 75, help with council tax and support with household costs such as ground rent. A surge in pension credit applications was observed after Chancellor Rachel Reeves announced in July that the winter fuel payment would only be available to pensioners receiving pension credit or other means-tested benefits. This change, aimed at addressing a £22billion deficit in public finances, is expected to reduce the number of recipients of the £300 winter fuel allowance from 11.4million to just 1.5million. Despite the recent uptick in claims, a staggering £1.5billion worth of pension credit went unclaimed last year. This is a slight improvement from the £2billion left unclaimed in the previous year, but it highlights the ongoing issue of low benefit take-up among pensioners. It comes as thousands of Sun readers flooded our Winter Fuel SOS helpline yesterday looking for help to hang on to the payment. Figures from the DWP show that 65 per cent of those entitled to pension credit claimed it in 2023, up from 63 per cent in 2022. While the rise is encouraging, campaigners argue that far more needs to be done to ensure older people receive the financial help they’re entitled to. Pension Credit explained Pension Credit is a benefit which gives you extra money to help with your living costs if you’re on a low income in retirement. It can also help with housing costs such as ground rent or service charges. You may be able to get extra help of you’re a carer, have a disability, or are responsible for a child. It also opens up access to lots of other benefits such as the warm home discount scheme, support for mortgage interest, council tax discounts, free TV licences once you’re over 75, and help with NHS costs. To qualify, you need to be over state pension age and live in England, Scotland or Wales. If you have a partner, you need to include them on your claim. Pension Credit tops up: your weekly income to £218.15 if you’re single your joint weekly income to £332.95 if you have a partner However, even if your income is higher, you might still qualify if you have a disability or caring responsibilities. There is also another element to Pension Credit called savings credit. To get this, you need to have saved some money towards your retirement. You can get an extra £17.01 a week for a single person or £19.04 a week for a married couple. If you have more than £10,000 in savings, the government uses a calculation to work out how much it adds to your income. Every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week. 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 per cent from 63 per cent the previous year.” Morrissey added that the recent focus on linking pension credit to the winter fuel payment may drive further increases in applications. She said: “The 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.” However, she warned that the scale of the problem remains significant. She continued: “More than 750,000 families who could receive pension credit are still not claiming it.”

Oct 10, 2024 - 16:24

DWP reveals up to 760,000 families missing out on pension credit worth £3,900 a year – see if you can claim --[Reported by Umva mag]

HUNDRED of thousands of families are missing out on vital pension credit payments worth up to £3,900 annually, according to new figures from the Department for Work and Pensions.

The latest statistics reveal that up to 760,000 families entitled to pension credit did not claim it during the financial year ending in 2023.

File photo dated 20/08/24 of a view of ¿5, ¿10, ¿20 and ¿50 bank notes. Pension funds are generating more returns than most Britons expect, according to new research which suggests many savers underestimate how much cash their pension can generate. Industry data shows that leading pension funds have brought average annual returns of 7.72% over the last five years for people who are 30 years away from retirement. Issue date: Monday September 30, 2024. PA Photo. The same researchers found in a previous survey that over a third of savers aged 18 to 54 only anticipate returns between 5% and 7%. See PA story MONEY Pension. Photo credit should read: Gareth Fuller/PA Wire — DWP statistics have revealed up to 760,000 families are missing out on pension credit

This is a slight improvement from the previous year when around 870,000 families were eligible but didn’t take up the benefit.

Pension credit, a means-tested benefit designed to top up the income of the poorest pensioners, is becoming increasingly important as it is now linked to other crucial support.

In particular, those claiming pension credit are eligible for the winter fuel payment, which has become more restrictive following recent government changes.

The benefit goes to those who’ve reached State Pension age, which is currently 66, whose weekly income is less than £201.05 if you’re single, or £306.85 for couples.

Those who have a higher income may still be eligible if they have a higher income but have others costs like housing, a disability, or even savings.

Claiming Pension Credit can also unlock extra help, including, a free TV licence if you’re over 75, help with council tax and support with household costs such as ground rent.

A surge in pension credit applications was observed after Chancellor Rachel Reeves announced in July that the winter fuel payment would only be available to pensioners receiving pension credit or other means-tested benefits.

This change, aimed at addressing a £22billion deficit in public finances, is expected to reduce the number of recipients of the £300 winter fuel allowance from 11.4million to just 1.5million.

Despite the recent uptick in claims, a staggering £1.5billion worth of pension credit went unclaimed last year.

This is a slight improvement from the £2billion left unclaimed in the previous year, but it highlights the ongoing issue of low benefit take-up among pensioners.

It comes as thousands of Sun readers flooded our Winter Fuel SOS helpline yesterday looking for help to hang on to the payment.

Figures from the DWP show that 65 per cent of those entitled to pension credit claimed it in 2023, up from 63 per cent in 2022.

While the rise is encouraging, campaigners argue that far more needs to be done to ensure older people receive the financial help they’re entitled to.

Pension Credit explained

Pension Credit is a benefit which gives you extra money to help with your living costs if you’re on a low income in retirement.

It can also help with housing costs such as ground rent or service charges.

You may be able to get extra help of you’re a carer, have a disability, or are responsible for a child.

It also opens up access to lots of other benefits such as the warm home discount scheme, support for mortgage interest, council tax discounts, free TV licences once you’re over 75, and help with NHS costs.

To qualify, you need to be over state pension age and live in England, Scotland or Wales.

If you have a partner, you need to include them on your claim.

Pension Credit tops up:

your weekly income to £218.15 if you’re single
your joint weekly income to £332.95 if you have a partner

However, even if your income is higher, you might still qualify if you have a disability or caring responsibilities.

There is also another element to Pension Credit called savings credit. To get this, you need to have saved some money towards your retirement.

You can get an extra £17.01 a week for a single person or £19.04 a week for a married couple.

If you have more than £10,000 in savings, the government uses a calculation to work out how much it adds to your income.

Every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.

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 per cent from 63 per cent the previous year.”

Morrissey added that the recent focus on linking pension credit to the winter fuel payment may drive further increases in applications.

She said: “The 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.”

However, she warned that the scale of the problem remains significant.

She continued: “More than 750,000 families who could receive pension credit are still not claiming it.”

“Pension credit is a hugely valuable benefit that not only tops up income but also acts as a gateway to other support such as a free TV licence for the over-75s as well as help with council tax.”

With energy bills set to rise again this winter, the winter fuel payment will be critical in helping pensioners manage their household costs.

Campaigners have urged those who think they might be eligible to apply for pension credit as soon as possible.

How to apply for pension credit

YOU can start your application up to four months before you reach state pension age.

Applications for pension credit can be made on the government website or by ringing the pension credit claim line on 0800 99 1234.

You can get a friend or family member to ring for you, but you’ll need to be with them when they do.

You’ll need the following information about you and your partner if you have one:

National Insurance number
Information about any income, savings and investments you have
Information about your income, savings and investments on the date you want to backdate your application to (usually three months ago or the date you reached state pension age)

You can also check your eligibility online by visiting www.gov.uk/pension-credit first.

If you claim after you reach pension age, you can backdate your claim for up to three months.

Joanna Elson, chief executive of Independent Age, described the figures as “disappointing” and warned of the real-life consequences for those missing out on financial help.

Joanna said: “Behind these statistics are real people who are worrying about whether they will be able to afford next month’s bills.”

She added that the winter fuel payment should be protected from means-testing to ensure the most vulnerable pensioners don’t miss out on essential support.

Joanna continued: “To ensure this group don’t also miss out on the winter fuel payment, we continue to call on the UK Government to pause their plan to means test the winter fuel payment.”

Campaigners argue that the current approach to encouraging pension credit claims isn’t enough and are calling for a more innovative, long-term strategy to reach those most in need.

With winter approaching, the pressure is mounting to ensure that pensioners don’t face financial hardship as energy prices soar.

For many, claiming pension credit could provide a much-needed lifeline during the cold months ahead.

Meanwhile, money saving expert, Martin Lewis was seen clashing with government minister Lisa Nandy over the Winter Fuel Payment decision that will affect millions of pensioners.

The Sun's Winter Fuel S.O.S Campaign

WORRIED about energy bills? The Sun’s Winter Fuel SOS crew are taking calls on Wednesday.

We want to help thousands of pensioners worried about energy bills this winter, with tips and advice on how to make cash go further.

Our Winter Fuel SOS crew will be able to help answer your questions on whether you can get Pension Credit and the Winter Fuel Payment.

Ten million OAPs are set to lose the £300 Winter Fuel Payment due to government cutbacks.

It comes in the same month that millions of households are hit by a ten per cent rise in bills as the Energy Price Cap shoots up.

We can help with advice on how else to save money.
Our phone line is open 7am to 7pm Wednesday October 9 – you can call us on 0800 028 1978.

Or you can email now: [email protected]

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