DWP says state pensioners ‘being sent letters’ over £952 payment boost | Personal Finance | Finance

The Department for Work and Pensions said it was writing to people receiving state pensions this year to encourage them to apply for the benefit, which could be worth up to £3,900. Pension Credit is a tax-free, means-tested UK government benefit available to people over State Pension age and on low incomes.

It supplements your weekly income up to the guaranteed minimum and acts as a “gateway” to access other financial support. It supplements the weekly income with a guaranteed minimum of £238.00 (£952 per month) if they are single or £363.25 if they are a couple. At a Work and Pensions Committee hearing in the House of Commons yesterday, Secretary of State Pat McFadden confirmed the letters had been sent.

Around 900,000 of the poorest people in the country are thought to still have not applied for aid, which is not automatically granted. To boost these numbers, the DWP is focusing its plans on two main areas: targeted awareness campaigns rather than targeting retirees directly; DWP launches new campaign targeting older people’s relatives, friends and neighbors

By encouraging young people and their loved ones to check whether the pensioners in their lives are eligible, the DWP hopes to overcome the “pride” barrier that prevents many older people from applying. Previous campaigns using this method, as well as campaigns featuring trusted advocates such as the late Len Goodman, have proven effective.

Mr McFadden said: “We always encourage people to claim the pension credit they are entitled to. However, the Committee will know that there are long-term problems with people claiming pension credit and not claiming the relief to which they are entitled. “We have run a lot of information campaigns and put in a lot of effort and the numbers have increased, but that is what pension credit is for: those who do not have access to sufficient income because of the state pension they receive.

Committee member John Milne said despite a lot of effort, pension credit take-up remained at around two-thirds, adding: “It’s a scandal that we’ve failed to do any better, isn’t it? What ideas do you have to improve the situation?”

Mr McFadden said: “Let me take every opportunity, including this one, to encourage anyone watching to apply for pension credit if they qualify. They have nothing to lose by applying. I would encourage any pensioner who thinks they can access this benefit to do so. It’s their right. It’s a long-standing problem that some people don’t. Some pensioners I know are prideful and don’t want to ask for help, but I can tell people: ‘That’s what this is for’ you.” People should apply if their income and all other conditions are suitable.”

Sir Peter Schofield, Permanent Secretary at the Department for Work and Pensions, explained the measures used: “Making a difference, as the Secretary of State describes it, has been an ambition of the Department for many years – for as long as I have been there. We have found that it is more effective to have advocates that people know and can aspire to. The late, great Len Goodman, who was known to many people, featured in one of our campaigns a few years ago and we have seen an increase as a result of that campaign.”

“There was also a really successful campaign where we encouraged relatives and friends of older people to ‘Think of your loved ones’ and see if they were someone who could claim pension credit, to get around some of the pride issues that the Secretary of State had identified earlier.

“Obviously the link to winter fuel payments has made a significant difference, as well as the link to TV licences. Last year we saw the number of people taking out pension credit increase by 34,000, so there’s some work being done there but it’s ongoing work.”

“Again, we have a new campaign trying to reach people who have contacts and relatives who may be eligible for pension credit. I think it’s a matter for society for all of us to think about older people – our loved ones, friends and neighbours – and what we can do for people who perhaps don’t realize what they’re entitled to. Those of us under state pension age can have just as important a role to play as the people of state pension age who we’re trying to reach.”

Mr Milne suggested sharing data between departments would help. Sir Peter said the DWP was currently sending letters to people about housing benefit. He said: “In one way, it’s linking the eligibility of different benefits for people of retirement age. One of the things we did a few years ago was to start identifying those people, and we do that regularly now. We identify people who are applying for housing benefit and are of retirement age; that gives us some information about whether they might be eligible for pension credit, which can then trigger benefits to encourage them to apply for pension credit.”

“We published 120,000 letters a few years ago as a start to this process, and this is something we do regularly now. We can certainly do more, and we are doing more with the data we have at the Department. There is more that can be done, drawing on data from other organisations.”

Government website for pension application credits can be found here.