Pensioners missing out on £1,300 payment they don’t know they’re entitled to
Thousands of pensioners are failing to claim money owed to them, with three-quarters of those eligible missing out on an average of £1,339 a year, a new report shows.
More than four in ten retired homeowners (42 per cent) are eligible for at least one of a range of government payments.
But 74 per cent of them are likely not claiming the money they could receive, despite being in low-income households, according to figures from pension experts Just Group.
One reason for this appears to be a lack of awareness about claiming the money, with some homeowners unaware these options even exist.
“Our survey reveals yet again an epidemic where retired homeowners are being denied the income they are entitled to claim,” said Just Group director David Cooper.
“Nearly three-quarters of retired homeowners who were eligible for assistance were not claiming any assistance. These are likely to be low-income retirement households struggling with the cost of living crisis.”
Benefits include guaranteed pension credit, savings pension credit, council tax reductions and universal credit.
For example, among those eligible for council tax cuts, fewer than one in four (24%) were claiming them, despite the average new claim value being more than £1,000 per year.
Independent has previously reported that DWP figures show nearly a million pensioners are missing out on two parts of their pension credit and how to check their eligibility and claim.
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“Guaranteed pension credit is a gateway to a range of other benefits for older people, such as means-tested essential benefit and winter fuel payment, but we have seen more than two-thirds of eligible people miss out,” Mr Cooper said.
“Our report raises serious questions about the support and guidance offered to people in retirement and beyond.
“Benefits such as pension credit are not paid automatically, but must be claimed, so people need foresight to check if they are eligible. It is important that cash-strapped pensioner families do not assume there is no government benefit available; a five-minute check could unlock thousands of pounds of income each year.”
The report shows that six in 10 (62 per cent) of retirees who are unable to claim what they are entitled to are missing out on a basic benefit, 12 per cent are missing out on two benefits and 5 per cent are missing out on three benefits.
Additionally, almost one in seven people (14 percent) who managed to claim were actually receiving too little; On average, they were missing out on additional income of £1,162 per year.
One customer was found to lose £113.03 per week, or £5,877 per year.
