This week I met with Paul Maynard, Parliamentary Under-Secretary of State for Pensions, to discuss the government's efforts to support lower-income pensioners.
Since the Conservatives came to power in 2010, and introduced the Triple Lock, the state pension has increased by over £3,700, helping to lift 200,000 pensioners out of poverty and ensuring pensioners have dignity and respect in later life.
Our conversation also centred around the low uptake of Pension Credit, which has left hundreds of thousands of eligible pensioners without this vital top-up payment. Although there has been some improvement in Pension Credit uptake, it is still not being taken up by everyone who is eligible for it.
There are two elements to Pension Credit, the first being Guarantee Credit and the second, Savings Credit. Guarantee Credit is a means-tested benefit that is available to individuals aged State Pension age and above and is provided on a UK-wide basis. This benefit provides a weekly financial top-up to help individuals cover living costs, ensuring that they receive a steady income to support their daily needs. For those who have reached State Pension age before April 6th, 2016, Savings Credit can provide an extra boost to their income. By claiming Pension Credit, individuals may also become eligible for additional benefits, such as assistance with health and housing costs.
According to the Department for Work and Pensions (DWP), a staggering £1.7 billion of Pension Credit went unclaimed by up to 1 million pensioner households in the financial year 2021/2022. Although an awareness campaign launched in July 2023 showed some initial success, uptake began to plateau again shortly after. Pension Credit can make a significant difference in someone's life, providing an average annual top-up of over £3,900. It is essential that keep raising awareness to ensure that eligible pensioners receive this benefit.
To help individuals check their eligibility and estimate their potential entitlement, the Pension Credit calculator is available at gov.uk/pension-credit-calculator. Alternatively, there is a Pension Credit helpline directly on 0800 99 1234. The helpline is open from 8am to 6pm, Monday to Friday.
I urge everyone who might be entitled to take a few minutes to check their eligibility and make a claim if they are due to receive this valuable benefit.
