Jon Greer, head of retirement policy at Quilter, comments on the latest DWP benefits statistics:“The latest benefits statistics from the Department for Work and Pensions reveals the number of pension credit recipients has fallen by 11,000 over the last year despite the substantial support it can offer to pensioners on low incomes. In February 2024, 1.4 million people were in receipt of pension credit, representing a total of 1.5 million beneficiaries including partners. Of these recipients, two thirds were women.
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"Pension credit has become all the more important following the Labour government’s changes to the winter fuel payment which mean it will only be paid to those claiming pension credit or other means tested benefits, so it is vital that pensioners on low incomes check their eligibility. The latest DWP estimates for take up of pension credit for the financial year ending 2022, published in January this year, confirm that 40% of those entitled to claim the benefit don’t and just 73% of the total amount of pension credit that could have been claimed was claimed. It is an incredibly important benefit targeted towards the poorest pensioners in the country. The take up of pension credit is a policy issue for this government as much as the previous one, arguably more so given the change in the winter fuel payment eligibility. Linking winter fuel payments to a benefit which appears to have just 60% take up has drawn broad consternation.
“At present, despite many media and government awareness campaigns, there are many pensioners who are missing out on claiming pension credits despite being eligible. This is most often due to a lack of awareness or an assumption being made that they will not be eligible, but not checking could be incredibly costly as you may not only be missing out on a substantial boost to your retirement income, but now the winter fuel payment too.
“Pension credit not only tops up your weekly income to £218.15 if you are single or your joint weekly income to £332.95 if you have a partner, but it also opens you up to a variety of other benefits which can help you manage costs such as housing, council tax and heating bills. If you are unsure whether you are eligible, it is vital that you check. An online pension credit calculator is available and can provide an estimate of the potential benefits your may be eligible for, and the application process is simple and can be done online, by post or by calling 0800 99 1234.”
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