Some 2.5 million pensioners in the UK are missing out on benefits worth up to £13,000 a year, according to a new report by research firm Public First and charity Independent Age. The study found that 280,000 pensioners would be lifted out of poverty if they claimed all the financial support they are entitled to, including pension credit, housing benefit, and council tax reduction.
Low Take-Up of Pension Credit
Only 62% of eligible pensioners receive pension credit, meaning around 1.2 million people miss out on a total of £2.5 billion annually. Pension credit can add up to £3,900 per year for a single person. Joanna Elson, chief executive of Independent Age, said: 'Money that has been set aside is not reaching the older people who need it and at a time with increasing costs, the impact of this is devastating.'
Housing Benefit and Council Tax Reduction Go Unclaimed
Approximately £1.1 billion in housing benefit, which would go to roughly 230,000 pensioners, is also going unclaimed. Housing benefit can provide up to £6,760 per year. Additionally, more than one million pensioner households may be missing out on council tax reduction benefit, which can reduce bills to zero in some cases. The average council tax bill for a Band D property in the UK this tax year is £2,392, according to the Government. Combined, these benefits total just over £13,000.
Reasons for Non-Claiming
The charity says many pensioners are not aware they qualify for help, are unsure how to claim, or are deterred by an onerous application procedure. A Government spokesperson said supporting pensioners is a priority and ministers have committed to the triple lock pension guarantee for the rest of this parliament. They noted that a pension credit take-up campaign led to an extra 33,500 pension credit awards last year.
How to Claim
Applications for pension credit can be made up to four months before reaching state pension age. You need a National Insurance number, details of income, investments or savings, and bank account information. Applications can be submitted online at gov.uk, by phone on 0800 99 1234, or by post using a downloadable form from gov.uk.
Housing benefit is being replaced by Universal Credit, so most people will need to apply for that. A single person at or above state pension age can claim housing benefit. If you are at or over state pension age and live with a partner, you can apply if both of you are at that age or one of you is and claimed pension credit as a couple before May 15, 2019. People over state pension age with partners can also submit a claim if they live in sheltered or temporary accommodation. You can apply via your local council or as part of a pension credit claim.
To apply for a council tax reduction, contact your local authority. You will need to share ID, National Insurance number, earnings, benefits, and bank account details for you and your partner. Those who receive Universal Credit will need their monthly statement. Applications can be made online via your council's website or by post.
