At present, Pension Credit is the most under-claimed benefit in the UK, despite the support it can provide. The payment is made available to people of statutory retirement age and above, who have a low income.
Recent statistics from the DWP showed the payout could be worth over £3,300, but many people are not claiming it.
Now pensions industry veteran Henry Tapper and benefits consultant CEO Gareth Morgan are calling for a change in how the system works.
Their campaign ‘Credit Pension – it’s for you!’ aims to increase pension credit take-up and streamline the application process.
It is supported by the Department for Work and Pensions (DWP), Independent Age, Policy in Practice, Virgin Money and inbest.ai.
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Henry Tapper, Chairman of Pension Playpen, said: ‘This is a rallying call to key UK influencers, charities, banks, insurers, pension trusts, public services and other services supporting pensioners to support the ‘pension credit – it’s for you!’ campaign.
“About one in three eligible households are currently bankrupt. These people are missing out on £1.7billion of much-needed unclaimed ‘free money’ i.e. pension credit.
“With the current cost of living crisis, the sense of urgency couldn’t be greater.
“Who are these people? That’s what we plan to find out. Many will have no idea that pension credit even exists. Many are women.
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This would mean that Pension Credit would find those who could benefit from the help, rather than Britons having to search for it themselves.
The reasons for not applying for pension credit are varied, but the study found three suggestions.
First of all, many people don’t know the payment exists, however, some know it but think it’s not for them.
Finally, some are confused thinking that claiming a pension credit may invalidate other benefits they are already receiving.
Pensions Minister Guy Opperman told Express.co.uk: “We want to ensure pensioners receive all the support they are entitled to and continue to work closely with stakeholders and others to increase Pension Credit awareness The latest figures show that taking Pension Credit is at its highest level since 2010, with the number of new applications up 30% in 2021 compared to 2019.
“However, I know there is still work to be done and I look forward to seeing the recommendations that emerge from the feasibility study.”