Ditch ‘flawed’ Pension Credit for £1,280 ‘dwelling’ state pension, say campaigners

Campaigners are calling for the state pension to be increased to at least £320 a week – which is round £1,280 a month – so hard-up pensioners not have to assert Pension Credit.

Silver Voices mentioned Pension Credit is “plagued by a low take up rate” and that the minimal state pension quantity is “realistic and sustainable”.

Previous estimates counsel some 850,000 individuals are lacking out on Pension Credit, which might enhance a family’s earnings by greater than £3,000 a 12 months.

Pension Credit tops up the earnings of Britons of state pension age who’ve a low earnings, as much as £201.05 per week for single individuals and as much as £306.85 per week for {couples}.

The full primary state pension is at present £156.20 per week whereas the total new state pension is £203.85 per week, though an individual will obtain much less if they don’t have sufficient qualifying years to get the total quantity.

READ MORE: Woman shares how she’s slashing her £6,000 debt despite being on low income

Silver Voices director Dennis Reed, said: “If political parties are serious about tackling pensioner poverty and stopping premature deaths through hypothermia and malnutrition, then they must introduce a pension which is sufficient for life’s essentials.

“No pensioner household, having paid their taxes and national insurance for all their working lives, should be forced to claim benefits in order to survive.

“Our proposal of a minimum state pension of £320 per week is realistic and sustainable, as it would be partly paid for by scrapping the flawed Pension Credit system.

“Every older person should receive a basic income sufficient to heat their homes and feed their households, without having to apply for a top-up benefit.

“Lip service by politicians to the right to a dignified retirement is no longer acceptable to senior citizens, they must deliver the wherewithal.”

An individual doesn’t must be claiming their state pension to assert Pension Credit, though for couple claimants, each of them should have reached state pension age, which is at present 66.

Pension Credit is a ‘gateway’ benefit providing access to other help from the Government, together with a free TV licence for claimants aged 75 or over.

Claimants can even get council tax reductions and Support for Mortgage Interest in the event that they personal the property they dwell in.

An individual can learn how a lot state pension they’re on monitor to obtain and the way a lot Pension Credit can declare utilizing the state pension forecast tool on the Government web site.

Martin Lewis lately inspired individuals to examine if they’re eligible for the profit. He mentioned on ITV’s This Morning: “My rule of thumb is if you’ve got a total weekly income of under £220, it is worth checking whether you’re entitled to Pension Credit.

“That’s what I always say. I don’t say you’re going to get it. I say that’s when it’s worth checking. And if you are a pensioner couple with income under £320, it is worth checking.”

The DWP beforehand created an interactive Pension Credit declare type as a part of a marketing campaign to lift consciousness of the profit.

People on the profit are additionally receiving a £900 cost of living payment going out to people on certain means-tested benefits.

The first £301 instalment has already gone out with a second £300 instalment going out in autumn 2023 and the third cost of £299 in spring 2024.

For the newest private finance news, comply with us on Twitter at @ExpressMoney_.