Families fail to claim £2,000 pension top up

27 February 2020

Over a million UK families are missing out on thousands of pounds worth of pension credit


Up to 1.2 million families who are entitled to receive pension credit did not claim the benefit in 2017-18, according to new findings from the Department for Work and Pensions (DWP).

Around £2.5 billion of pension credit went unclaimed during this period.

Families who failed to claim the benefit missed out on an average of £2,000.

Take up of pension credit was at its lowest among couples, with just 55% of eligible couples making a claim.

This compares to 67% of single men and 62% of single women who claimed pension credit.

Stephen Lowe, group communications director at Just Group, says: “Pension Credit is designed to top-up the incomes of the poorest pensioners but four out of 10 entitled people are failing to claim.

“The human story to this is the hundreds of thousands of people who are struggling to make ends meet who may not realise financial help is available or do not know how to navigate the system.

“Our own research reveals that four in 10 (42%) of those aged over 65 had never checked if they were eligible for a benefit, a figure that is higher among homeowners (49%) and those aged over 80 (57%).”

What is pension credit?

Pension credit is a means-tested benefit that's made up of two parts. 

Guaranteed credit, which tops up your weekly income so it reaches a minimum sum set by the government. 

There's also savings credit, an extra payment from the government to reward you for savings towards your pension. 

To claim pension credit, you need to have reached state pension age which is currently 65 for both men and women. 

How to apply for pension credit

There are two ways to apply for pension credit.

You’ll need to either send off a PC1 form via post which can be downloaded from GOV.UK.

Or, you can also apply by calling The Pension Service on 0800 99 1234.


Pension and Savings Credit

The worst of it is that very modest savings knock you out of claiming and savings are still deemed to get 10%interest ...thats impossible and ridiculous and penalises all those who saved for retirement

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