Pensioners missing out on 'complicated' credit

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Pensioners missing out on 'complicated' credit

The Guardian

January 12, 2004

The government's pension credit is failing to reach almost half of the elderly people to whom it is entitled, according to official figures released today.

An estimated 4.9 million people are believed to be eligible for the credit (which is worth an average £44.20 a week), but today's figures from the Department for Work and Pensions showed just 2.53 million were receiving it. Furthermore, three months after its launch, the rate of new pensioners applying for the credit has slowed.

Some 79,000 new claims were approved in December, compared to 106,000 in November and 82,000 in October. The DWP pointed out that the new figures covered the Christmas and new year holiday period.
Liberal Democrat pensions spokesman Steve Webb said that many older people were missing out on cash because the system for claiming it was too complicated.

"The government's eye-wateringly complex pension credit is failing to reach nearly half of those entitled to this money," he said. "It's extremely worrying that the number of new pensioners signing up for this means-tested benefit is actually slowing. As every month goes by, pensioners are missing out on money they are entitled to. It's likely that many will never receive the much-needed extra cash. The only guaranteed way to get extra money to the poorest pensioners is by boosting the inadequate state pension."

But pensions minister Malcolm Wicks said that 1.71 million people in 1.44 million households were now receiving more money thanks to the credit, which guarantees everyone aged 60 and over a weekly income of £102.10, or £155.80 for couples.

Anyone claiming before October this year would have their payments backdated to October 2003, when the credit replaced the old minimum income guarantee, he said.

Mr Wicks said: “I'm pleased that thousands more people continue to make successful applications for pension credit, and as we start the new year I encourage all those who have not applied but think they may be eligible to do so.”

"Pension credits have a huge role to play in helping this country's poorer pensioners and there are now over 1.7 million people gaining more money as a result of their successful application.

"There is still plenty of time to get your application in. If we receive yours by October of this year, it will be backdated to October 2003 or to the date entitlement begins if this is later."

Work and pensions secretary Andrew Smith today released the results of an independent survey suggesting claims that the pension credit forms are too complex.

Some 80% of pensioners questioned by Continental Research for the DWP said that the forms were easy to understand and 89% said they were satisfied with the application process, which involves a 15-20 minute phone call to go through the claim.

Just 10% said the process should be made clearer and 5% complained they were asked to give too much information.

Pensioners who received the minimum income guarantee were automatically registered on the new scheme on its introduction, and the DWP is planning to write to every other pensioner by June this year to invite them to apply if they believe they may be eligible. Mr Smith has set a target of three million pensioners receiving the credit by 2006.