The Department for Work and Pensions has announced it is reaching out to state pensioners this year in a bid to encourage them to claim a benefit potentially worth £3,900.
Pension Credit is a tax-free, means-tested UK government benefit available to those above State Pension age who are living on a low income. It raises weekly earnings to a guaranteed minimum level and serves as a gateway to unlocking further financial support. It boosts weekly income to a guaranteed minimum of £238.00 for single claimants, or £363.25 for couples.
Government Campaign to Boost Uptake
During yesterday's Work and Pensions Committee hearing in the Commons, Secretary of State Pat McFadden confirmed that letters are being sent out, reports Chronicle Live. The government believes that drawing attention to the fact that those aged 75 or over who receive Pension Credit are entitled to a free TV Licence is an effective way of encouraging applications. This applies regardless of whether the Pension Credit is claimed in the individual's name or their partner's, provided both reside at the same address.
Around 900,000 of the country's most financially vulnerable people are yet to claim the benefit, which is not automatically awarded. To drive uptake, the DWP is focusing its strategy on two key approaches: targeted awareness campaigns and community engagement.
Engaging Family and Friends
Rather than concentrating solely on pensioners themselves, the DWP is launching a new campaign aimed at the family members, friends, and neighbours of older people. By encouraging younger people and family members to check whether the pensioners in their lives could be eligible, the DWP hopes to tackle the pride barrier that stops many older people from making claims. Previous campaigns using this method, alongside those featuring well-known faces such as the late Len Goodman, have proved effective.
Mr McFadden said: We are always encouraging people to claim the pension credit to which they are entitled. The Committee will know, however, that there have been long-term issues with people underclaiming pension credit and not claiming the help to which they are entitled. He added: We have had lots of information campaigns and we have put in lots of effort, and the numbers have gone up, but that is what pension credit is there for: those who do not have access to enough income due to the state pension that they receive.
Ongoing Challenges and Data Sharing
Committee member John Milne pointed out that pension credit uptake continues to sit at roughly two thirds, despite substantial efforts being made. He said: It is a scandal that we have not managed to do better, isn't it? What ideas do you have to improve the situation?
Mr McFadden responded: Let me take every opportunity, including this one, to encourage anyone watching to apply if they might be entitled to pension credit. They have nothing to lose by applying. I encourage every pensioner who thinks that they might be able to access this help to take it up. It is theirs as a right.
Sir Peter Schofield, Permanent Secretary at the Department for Work and Pensions, described the current strategies being employed: It has been a passion for the Department over many years to make a difference in the way that the Secretary of State has described. We have found that it is more effective to have advocates who people recognise and can aspire to.
He noted that the late Len Goodman featured in one of their campaigns a few years ago, leading to an increase in claims. He also highlighted a successful campaign encouraging relatives and friends to think about their loved ones and whether they could be claiming pension credit, addressing the pride issues. The link to winter fuel payments and TV licences also made a significant difference. In the last year, the number of people on pension credit rose by 34,000.
Sir Peter added: We have a new campaign going out, which is again trying to reach people who have contacts and relatives who may be eligible for pension credit. I think it is a society thing for us all to be thinking about older people and what we can do for those who are perhaps not aware of what they are entitled to.
Mr Milne suggested that sharing data between departments would be advantageous. Sir Peter disclosed that the DWP is currently sending letters to those claiming housing benefit. He said: One angle is linking up the eligibility of different benefits for people of pension age. We identify people who are applying for housing benefit and are of pension age; that gives us some information that might suggest whether they might be entitled to pension credit, and that can then trigger outreach to encourage them to apply. He noted that 120,000 letters were issued a couple of years ago as the start of that process, and it is now a regular practice.
Applications for pension credit can be submitted via the government website.
