A significant number of pensioners are missing out on a valuable benefit that could add up to £115 a week to their income. The Department for Work and Pensions (DWP) administers Pension Credit, a scheme designed to help those over state pension age with low incomes cover their living expenses.
Recent findings reveal a striking disparity in claim rates. Households eligible for more than £150 weekly Pension Credit had a high receipt rate of 86%, while those entitled to less than £5 a week had just a 30% claim rate. This indicates that the higher the potential weekly benefit, the more likely eligible pensioners are to claim it.
Philly Ponniah, Chartered Wealth Manager and Financial Coach at Philly Financial, highlighted the urgency of improving awareness: “It’s deeply worrying that nearly a third of eligible pensioners are missing out on money that could make a real difference to their weekly budget. £50 a week might not sound like much, but over a year, that amounts to more than £2,500 — enough to ease pressure on essentials or help cover rising energy costs.
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“Many simply don’t realise they qualify, especially if they own their home or have small savings. Better awareness and simpler claims could go a long way to ensuring older people receive the support they’re entitled to.”
Laura Purkess, Personal Finance Expert at Investing Insiders, added that a lack of awareness remains the biggest barrier to claiming Pension Credit, despite efforts to boost engagement. “The application process itself can be intimidating,” she explained. “It requires providing detailed financial information, which some elderly people find daunting, especially if they haven’t managed their own finances before.
“The UK’s welfare system is often overly complicated, leading to many qualifying individuals missing out on support. Simplifying these processes and providing plentiful assistance are crucial steps to help pensioners avoid unnecessary financial hardship.”
Torsten Bell, Labour Party Minister for Pensions, reaffirmed the government’s commitment to supporting vulnerable pensioners. “Pension Credit is a straightforward way to provide extra help with bills or a free TV licence to those who need it most,” he said. “I encourage anyone who thinks they might be eligible, or knows someone who is, to take a few minutes to check and apply. Pensioners deserve every penny they’re entitled to.”