The Department for Work and Pensions (DWP) has confirmed it is sending letters to state pensioners this year to encourage them to apply for Pension Credit, a benefit that could boost their income by up to £3,900 annually. Pension Credit is a tax-free, means-tested benefit for people over State Pension age on a low income, topping up weekly income to a guaranteed minimum of £238.00 for single individuals (£952 per month) or £363.25 for couples.
Secretary of State Confirms Letter Campaign
At a Work and Pensions Committee hearing in the Commons, Secretary of State Pat McFadden stated that letters are being dispatched as part of a broader effort to increase uptake. Approximately 900,000 of the poorest pensioners have not yet claimed the benefit, which is not automatically awarded.
The DWP is focusing on two main strategies: targeted awareness campaigns and engaging relatives, friends, and neighbours of older people. By encouraging younger people to check eligibility for their loved ones, the DWP aims to overcome the "pride" barrier that prevents many older individuals from applying. Previous campaigns featuring trusted advocates like the late Len Goodman have proven effective.
Committee Hearing Highlights
Mr McFadden said: "We are always encouraging people to claim the pension credit to which they are entitled. There have been long-term issues with people underclaiming pension credit." Committee member John Milne noted that take-up remains at about two-thirds, calling it "a scandal" and pressing for new ideas.
Sir Peter Schofield, Permanent Secretary at the DWP, explained measures being used: "We have found it more effective to have advocates who people recognise. The late Len Goodman featured in one of our campaigns, and we saw an increase. We also encouraged relatives to think about loved ones. Linking to winter fuel payments and TV licences made a significant difference."
Data Sharing and Outreach
Mr Milne suggested data sharing between departments could help. Sir Peter said the DWP is sending letters to people on housing benefit, identifying those of pension age who might be eligible. "We issued 120,000 letters a couple of years ago, and that is now something we regularly do. There is potentially more to be done by drawing on data from other organisations," he added.
The government encourages all eligible pensioners to apply, emphasizing that the benefit is theirs as a right. The application can be made via the government's official website.
