Retirement expert Helen Morrissey has warned the Department for Work and Pensions (DWP) faces an ‘enormous challenge’ encouraging eligible pensioner households to claim Pension Credit after new data revealed that more than 750,000 people over the age of 66 were entitled to the £3,900 income boost last year, but did not claim it.
The figures published on Thursday, show that up to 760,000 families who were entitled did not claim during the 2023/24 financial year, which is down from 870,000 pensioners who were entitled during 2022/23 and did not claim. Claims for Pension Credit have increased by 152 per cent since the Labour Government announced that Winter Fuel payments will only be issued to those on means-tested benefits such as Pension Credit, Universal Credit (mixed age couples) or Tax Credits.
The rule change will see around 10 million pensioners miss out on heating bill help worth between £100 and £300 this year. However, some 1.5m pensioner households, including over 125,000 in Scotland will receive the payments automatically this winter.
DWP has confirmed that it is sending letters to every pensioner explaining the eligibility rule change and whether they will be due the payment, and if so, how much they can expect to receive.
The DWP figures also indicate that around two-thirds (65%) of those entitled to Pension Credit claimed the benefit last year, an increase from 63 per cent in 2022/23.
Ms Morrissey 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.
“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.
“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 Payment 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, the head of retirement analysis at Hargreaves Lansdown, added: “The scale of the challenge is enormous, with more than 750,000 families who could receive pension credit 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.
“The Winter Fuel Payment will also be a major help as we head into the winter months with energy bills on the rise. Anyone who thinks they or a loved one could be entitled should put in a claim.”
Joanna Elson, chief executive of Independent Age, described the figures as “disappointing”. She said: “Behind these statistics are real people who are worrying about whether they will be able to afford next month’s bills.
“Each year, our Independent Age advisers hear from thousands of older people living in financial hardship who are forced to make decisions such as whether to wash in warm water or eat fresh vegetables.
“To ensure this group doesn’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.”
She added: “We know there has been an increase in Pension Credit applications since the announcement that the winter fuel payment would be means tested, but it is unclear how many of these will result in a successful claim.
“Previous strategies have not moved the dial, we can’t have more of the same. We need an innovative, evidence-based, long-term benefits take-up strategy that maps out how older people living in, or on the edge of, poverty can access the financial support they are entitled to.With winter around the corner, now is the time to bring those who most need it back in from the cold.”
Some older people think because they have savings or own their home they would not be eligible for the means-tested benefit, however, an award of just £1 per week is enough to unlock other support, including Winter Fuel Payments.
New claims for Pension Credit submitted to DWP before December 21, 2024 which later turn out to be successful will be entitled to a backdated Winter Fuel Payment.
Fastest ways to check eligibility for Pension Credit
Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK here.
Alternatively, pensioners can contact the Pension Credit helpline directly to check if they should make a claim on 0800 99 1234 – lines are open 8am to 6pm, Monday to Friday.
Expert help and advice is also available from:
More details about claiming Pension Credit can be fond on GOV.UK here.