Thousands of pensioners could be missing out on more than £4,000 a year in financial help because of common misconceptions about a key benefit. The support comes through Pension Credit, a payment designed to boost the income of people over State Pension age who are on a low income.
The benefit can also unlock additional help, including council tax reductions, free TV licences for over-75s and support with NHS dental treatment. However, a new report by research company Verian found many eligible pensioners are failing to claim because of misunderstandings, stigma and a lack of awareness.
The report found the biggest barrier preventing people from claiming was the mistaken belief that they were not eligible. Some pensioners incorrectly assumed that receiving benefits such as Personal Independence Payment, having savings, or having a partner who works would automatically disqualify them from receiving Pension Credit.
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In reality, the main eligibility requirements are that you must be over State Pension age, live in England, Scotland or Wales, and have a relatively low income, reports Samantha Leathers from the Mirror.
Typically, this means an income of less than £227.10 a week for single people or £346.60 a week for couples. But people may still qualify with a higher income if they have additional costs, such as disabilities, housing expenses or caring responsibilities.
Another common misunderstanding relates to savings. People can have up to £10,000 in savings or investments without it affecting their Pension Credit.
If savings exceed this amount, every £500 above the threshold counts as £1 a week towards income calculations. This means some people with savings above £10,000 may still qualify for support.
The research also found many people had never heard of Pension Credit or were unaware of the extra support it unlocks. Others admitted they felt too proud or embarrassed to claim benefits, despite being entitled to the help.
Analysis from the Department for Work and Pensions (DWP) last year showed fewer than 70% of eligible pensioners in England, Scotland and Wales were claiming Pension Credit. Those who do claim receive an average of £82.71 a week, equivalent to around £4,300 a year.
Some pensioners also said they avoided claiming because they believed others were more in need. One person aged over 75 who was eligible but not claiming said: “With the position I’m in, if there’s a fund out there for more deserving people, they should be the one to receive it… if they need it more than me, I think they should have priority.”
Others were worried it could affect their existing income. One new claimant said: “I was wary of claiming for it because I didn’t know if it would affect my pension… if the Government gives you some money, they usually take it off you somewhere else.”
However, experts say anyone who believes they may qualify should still apply, as even those who do not receive direct payments could still gain access to additional ‘passported’ benefits linked to Pension Credit.
More information about Pension Credit and how to apply is available on the GOV.UK website.
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