More than three quarters of a million elderly people in the UK are missing out on pensions credit – a valuable top up that could add more than £3,000 a year to your income.
That’s according to Department for Work and Pensions (DWP) figures released today, amid a growing cost of living crisis that could send inflation soaring above 7.5% by April.
The DWP findings show less than seven in 10 people who are eligible for pensions credit currently receive it.
The support is in place for pensioners who are at risk of falling into the poverty bracket because their income - often their state pension - is too low.
It tops your income up to around £177.10 a week if you’re single or £270.30 if you have a partner - although the exact amount depends on factors such as how much you have in savings.
Since 2019, up to £1.7billion worth of pensions credit has gone unclaimed. That’s £1,900 for every qualifying household that's missing out.
Veronica Fenn, 82, from London only just recently discovered she qualified for the benefit after speaking to a friend.
Ms Fenn approached charity Independent Age. She then found out she could get £110.38 a month.
“Seeking help doesn’t always come naturally to my generation and I have always been an independent spirit, but it’s so important for people to know what support is out there,” she said.
Ms Fenn says with rising bills and food prices, pensions credit is now a vital part of her income.
“Pension credit is vitally important to me, I don’t think the current pension is enough for anyone to live on especially with the big rises we are seeing in the cost of living.
“Even with this essential top up, I still have to conserve money where I can.
“I have found that having a smart meter really helps as I can tell how much money my power is costing each day.
“I have little tricks like heating my coffee in the microwave rather than using the kettle, and I restrict how often I use my oven.
“Electricity bills have gone up so much. Unless it’s really cold, I pile on the sweaters instead of using heaters.”
Even after the extra support, Ms Fenn says she cost cuts on everything to save every penny.
“I used to work in the fashion industry where I developed an eye for good fabric which helps me to buy clothes in charity shops,” she said.
“I bought a pair of glasses for £2 and put my prescription lenses in them, it would have cost me fifty times as much at an opticians.
“You can still enjoy life while saving money, but I do believe much more could be done to support older people.”
Pensioners are urged to check if they qualify for the support amid an inflation crisis that could place tens of thousands of pensioners into the poverty bracket this year.
It comes after the triple lock was axed – meaning the state pension will rise by 3.1% this April - just half of the Bank of England’s average inflation forecast of 6.2%.
Last month, price rises hit 5.5%, a 30 year high.
Shadow Work and Pensions Secretary Jonathan Ashworth calculates that as a result, an individual pensioner will be £222 and couples £355 worse off in real terms over the next financial year.
Morgan Vine, head of policy and Influencing at Independent Age, said: “We know pension credit has the potential to lift 440,000 older people out of poverty, yet it still has the lowest uptake of any income-related benefit.
“Too many people in later life are still having to choose whether to heat their home or buy food, despite being eligible for financial support.
“These figures clearly show that not enough has been done and up to 850,000 older people are still missing out as a result.
“It is scandalous that up to £1.7billion set aside to help people over 65 entitled to support is still not reaching them, especially as we battle against an unprecedented cost-of-living crisis.
“As it continues to put pressure on older people’s finances with inflation at a 30-year high and rocketing energy and food prices, we need to see urgent action from the government so that by next year more older people get the support they are entitled to.
“We want the government to look at innovative technical solutions such as partial auto-enrolment which would ensure more people eligible to this money receive it.”
Find out if you are eligible for pension credit and how to apply, here.
