New DWP data showed that the Pension Credit receipt-rate was highest amongst households entitled to more than £150 per week
State pensioners getting free £50 in November despite it ‘not sounding like much’
State pensioners are being handed an extra £50 in November despite it “not sounding like much”. State pensioners can get hundreds of pounds extra from the Department for Work and Pensions ( DWP ) in the form of pension credits.
New DWP data showed that the Pension Credit receipt-rate was highest amongst households entitled to more than £150 per week (86%) and lowest for households entitled to less than £5 per week (30%).
“over a third (34% – 282,000) of potentially eligible households were entitled to a weekly amount of less than £15”, the report says. This “appears to be a ‘tipping point’ amount after which an eligible household is more likely to be in receipt of Pension Credit”,” the DWP data shows.
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“Generally, as the weekly eligible amount decreases, the number of potentially eligible households who were not claiming Pension Credit increases,” it added.
“Conversely, as the weekly eligible amount increases, the number of eligible households in receipt of Pension Credit increases. In other words, as the amount that households could receive decreases, the less likely they were to be receiving Pension Credit.”
Philly Ponniah, Chartered Wealth Manager and Financial Coach at Philly Financial, said: “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’s more than £2,500, enough to ease pressure on essentials or help cover rising energy costs.
“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, has also commented. “The biggest barrier to take-up — despite a huge engagement push — is simply a lack of awareness, and that’s a major problem with anything where you have to apply rather than it being administered automatically,” she said.
“Even where people have heard of it, the application process itself is another major barrier. It requires proving financial information, and some elderly people find this daunting, or may never have managed their own finances and so don’t have the necessary information to hand.
“The welfare system in this country is generally overcomplicated and the result is thousands of people who qualify for help not getting it.
“We need to make these processes as simple as possible, with plenty of help on hand, and further engagement is essential to ensure people aren’t needlessly struggling in retirement.”
