Retirees are being urged to claim every penny they’re owed from the DWP as the eligibility deadline Winter Fuel Payments dawns
Hundreds of thousands of pensioners are still not claiming their dues from the DWP (Image: GETTY)
More than 2,000 pensioner households have received an average of £4,300 each following a successful campaign that has helped claim millions in unclaimed benefits. Policy in Practice, in collaboration with the Greater London Authority and Age UK, has been tackling the historically underclaimed Pension Credit benefit.
Their campaign, which began last year, has already assisted 2,174 households in the City to claim a total of £9.5million, averaging £4,394 per person.
However, this has only made a small impact on the capital’s pensioner poverty figures, with 1 in 4 London pensioners living in poverty as of 2021.
Policy in Practice identified three main reasons why people don’t claim the Pension Credit they deserve, starting with a lack of awareness, something Rachel Reeves’ budget also aimed to address.
The second reason is the complex application process, which includes a form with over 200 questions. This issue is compounded by the fact that many pensioners either didn’t want to admit they needed help or didn’t have support to turn to in the first place.
The third phase of their campaign is currently underway with backing from Mayor Sadiq Khan, urging pensioners to claim Pension Credit in time to be eligible for Winter Fuel Payments. However, this race extends beyond the capital, with experts encouraging pensioners across the UK to follow suit.
Ocean Finance has highlighted that a whopping £1.7 billion is going unclaimed by UK pensioners, with recent figures revealing that 850,000 people are not receiving the benefits they’re entitled to. This could equate to around £2,677 per person annually remaining with the DWP.
Furthermore, as Pension Credit often qualifies individuals for other freebies and benefits, pensioners could be missing out on even more. Personal finance expert Fiona Peake explained: “The total value unlocked by Pension Credit could be around £10,000 annually per person. These include:
- Council Tax Reductions: Potential savings of £1,000+ annually, depending on your local council.
- Cold Weather Payments: £25 for each seven-day period of freezing temperatures to help with heating costs.
- Free NHS Dental Treatment and Prescriptions: These could save you hundreds each year.
- Free TV Licence for Over-75s: A saving of £159 annually.
- Housing Benefit: This could help towards your rent, easing the strain on your monthly outgoings.”
She also pointed out that many people might be overlooking these opportunities to apply because they believe their savings or private pensions disqualify them.
However, Fiona emphasised that the restrictions are “more generous than you might think” and encouraged retirees to double-check their eligibility.
At present, there’s no cap on the amount of savings you can have to qualify, but it will influence how much you get from the DWP. Private pensions are also factored into eligibility calculations.
However, if your earnings are less than £218.15 for single individuals and £332.95 for couples, you might be eligible for some assistance, as per MSE. It’s also important to note that these limits could be higher if you’re receiving disability-related benefits or have caring responsibilities.
