Thousands of pensioners are being caught off guard by rules that cut off five Department for Work and Pensions (DWP) benefits the moment they reach state pension age, currently 66. Experts warn that many people only realise the impact when their income suddenly drops.
Ed Gallois, Managing Director of Funeral Guide, said: 'We regularly see people missing out on thousands because they simply don't realise what changes overnight at State Pension age. The system isn't easy to navigate. You have to ask the right questions, and sadly, too many people only discover the changes when their income suddenly drops.'
The benefits that end include Personal Independence Payment (PIP), which cannot be claimed after reaching state pension age. Instead, people must apply for Attendance Allowance, worth up to £108.55 a week. Universal Credit also stops, with Pension Credit taking over as a top-up for those on low incomes, and it can unlock other support such as free TV licences for over-75s.
Employment and Support Allowance and Jobseeker's Allowance both cease at 66. Government data shows employment rates drop by more than ten percentage points between ages 65 and 66. The New Style Bereavement Support Payment is also unavailable to those over pension age, though surviving partners may receive a portion of their late partner's state pension.
On the positive side, winter fuel payments of up to £300 begin at state pension age, along with free NHS prescriptions and eye tests in England, and access to a Senior Railcard. The Funeral Expenses Payment, worth up to £2,000, is available to those on qualifying benefits who are organising a funeral, but must be claimed within six months.
Gallois added: 'As living costs rise, knowing your rights is a lifeline, not a luxury.' The state pension age is set to rise to 67 between 2026 and 2028, and to 68 between 2044 and 2046, as the number of people above pension age is projected to increase by 55% over the next 50 years.
