The Department for Work and Pensions (DWP) has launched a new pension credit awareness drive, urging pensioners to check their eligibility for Pension Credit in order to secure this year’s winter fuel payment.
The DWP pointed out that whilst around 1.4 million pensioners are already receiving pension credit, there are up to an estimated 880,000 households eligible for the support who are yet to claim.
Indeed, recent figures from the DWP showed that pension credit uptake dipped slightly over the past year, with 11,000 fewer recipients compared with the same period last year and 24,000 fewer compared with 2022.
This comes at a time when pension credit has become 'all the more important' due to Labour government’s changes to the winter fuel payment, which mean it will only be paid to those claiming pension credit or other means tested benefits.
The government’s pension credit awareness will therefore aim to help identify households not claiming the benefit, and encourage pensioners to apply by 21 December, the last date for making a backdated claim for Pension Credit, in order to receive the winter fuel payment.
During the week of action, which is set to commence in September, the DWP and its partners will be tackling some of the myths that may stop people applying, such as how having savings, a pension or owning a home are not necessarily barriers to receiving pension credit.
This work is expected to build on last year’s invitation to claim pilots, where letters and leaflets were targeted at households already in receipt of housing benefit, but not claiming pension credit in 10 local authorities.
Commenting on the launch of the new campaign, Work and Pensions Secretary, Liz Kendall, said: “The £22bn black hole in the public finances we have inherited has required us to take difficult decisions, but I am determined to ensure low-income pensioners are supported.
“That’s why I urge any pensioner, or their loved ones, to check if they could get pension credit."
She also reiterated the government's commitment to the state pension triple lock, adding: “This government remains completely committed to pensioners which is why we’re protecting the income of over 12 million pensioners through the triple lock.”
Indeed, pensioners are expected to benefit from a further boost in state pension under the triple lock this year, with industry experts recently suggesting that wage growth will be used to uprate the state pension under the triple lock next month, after the latest data from the Office for National Statistics (ONS) revealed that annual growth in earnings (including bonuses) was 4.5 per cent for the April-June 2024 period.
However, industry experts have warned that the government could face an 'uphill struggle' in its push to increase pension credit uptake, with AJ Bell director of public policy, Tom Selby, arguing that "the last-ditch awareness push announced by the government today is welcome but it faces a stiff challenge in overturning what has been a persistent pension credit claims gap over the years".
"Government will need to really drive home the message this time and may need to think about different ways to reach potential claimants," he stated.
Hargreaves Lansdown head of retirement analysis, Helen Morrissey, also stressed that the pension credit awareness campaign will have "a lot riding on it".
"Previous attempts to boost take up haven’t been hugely successful with only around two-thirds of those who are eligible for it actually claiming it," she continued.
"As yet, we don’t know much more about how the government will reach potential claimants other than that they will be working with local authorities and charities.
"However, we hope activity continues well beyond the planned week of action as we will need a sustained effort over a longer time period to really engage people.”
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