Pension Credit warning as 1000’s ‘missing out’ on further £3,500 a 12 months
Experts are warning that 1000’s of pensioners are “missing out” on an additional £3,500 a 12 months by way of Pension Credit.
A latest Freedom of Information (FOI) request the variety of profit claims made to the Department for Work and Pensions (DWP) has greater than doubled within the final tax 12 months.
Nearly 250,000 Pension Credit claims have been made in 2022/23 in comparison with round 111,000 the 12 months earlier than.
Some 143,000 claims have been profitable final 12 months in comparison with 82,000 in 2021/22 and 95,000 have been rejected by the DWP.
Previously, the Government division has projected 850,000 state pensioners are failing to say Pension Credit.
As it stands, the profit is price round £3,500 a 12 months on common to those that are eligible, based on the DWP.
Pension Credit is reserved for these on the state pension who’re on low revenue and are in want of additional monetary assist.
As the price of dwelling continues to be a difficulty for a lot of, the Government has urged older folks to examine their eligibility.
However, consultants are sounding the alarm that the DWP profit is just not going far sufficient as retirement incomes continue to be squeezed.
Tom Selby, the pinnacle of retirement coverage at AJ Bell, defined: “Pension Credit has historically been chronically underclaimed by those who are eligible, with hundreds of thousands of households potentially missing out on thousands of pounds of valuable extra income per year.
“This is particularly tragic because those who are eligible for Pension Credit are likely to be among the poorest households in the UK.”
The finance knowledgeable highlighted how the continuing price of dwelling disaster has led to a “greater urgency” with regards to submitting a Pension Credit declare.
This is because of the truth the DWP profit is a getaway to different advantages, together with price of dwelling funds and the free TV licence for older Britons.
Mr Selby added: “In this context, the fact Pension Credit claims have more than doubled in the space of a year is both heartening and depressing.
“Heartening because it means over 60,000 more people received Pension Credit and the benefits that go with it in 2022/23, but depressing because it shows just how much retirees are struggling as a result of price rises.
“The fact almost 100,000 Pension Credit claims were turned down in 2022/23 is also deeply worrying, as these households may have been relying on receiving the benefit – not to mention the £600 of cost-of-living payments still to be distributed this year – to make ends meet.
“If your Pension Credit claim has been turned down you may still be entitled to other benefits, so it’s worth checking to see if you are eligible for other forms of financial help.”