Joanna Elson CBE, Chief Executive of Independent Age said: It’s concerning that there was a small decrease of 3% in the number of new people receiving Pension Credit between December 2023 and February 2024. It has never been more important that older people living on a low income start receiving this important financial entitlement, or they will not only continue to lose this money, but they’ll also now miss out on the Winter Fuel Payment if the Government’s changes go ahead in the autumn to means test it.
The latest overall take-up figures show that only 63% of eligible people receive the entitlement, meaning up to 1.2 million older adults living on a low income could be missing out. The low take-up numbers show that now is not the right time to make changes to the Winter Fuel Payment, it’s dangerous and puts older lives at risk.
Starting to means-test the Winter Fuel Payment this Autumn doesn’t give the UK Government enough time to significantly boost Pension Credit take-up. As a result, too many people will not only miss out on the money they should get through Pension Credit – on average almost £4,000 a year – but they will also lose up to £300 towards their energy bills from the Winter Fuel Payment. Our helpline regularly hears from frightened older people making cutbacks and looking for support, and in the days following the Winter Fuel Payment announcement, there has been an increase in calls regarding Pension Credit and other entitlements.
Pension Credit also opens the door to other useful entitlements such as a free TV licence for over 75s, access to Housing Benefit and help towards dental costs. This extra support can be worth up to £8,000 a year, but only if it makes it into the pockets of those who are entitled to it.
We hope the new UK Government takes swift action to introduce a Pension Credit take-up action plan. There needs to be innovative and impactful efforts to move the dial on this problem and get this money directly to older people living in poverty.
In the long-term, financial security must be the reality for all older people. All parties must agree on an adequate level of income needed in later life to avoid poverty and put in place plans to roll this out to everyone.
Pension Credit caseload statistics can be accessed here: https://www.gov.uk/government/statistics/dwp-benefits-statistics-august-2024/dwp-benefits-statistics-august-2024#pensions
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