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New data has revealed where hundreds of thousands of pensioners missed out on their winter fuel payment last year despite being eligible for it after Labour changes.
Over 830,000 eligible households across the UK are not claiming pension credit, figures released by the Department for Work and Pensions (DWP) show, meaning they would have missed out on the winter fuel payment last year after it was linked to the benefit.
Labour has now partially reversed this decision, making the changed criteria a one-off. However, the data has revealed the extent to which pensioner households nonetheless did not take up their entitlement last winter, broken down by area for the first time.
The decision to restrict the winter fuel payment – worth either £200 or £300 – to only those in receipt of pension credit last year was criticised by campaigners at the time given the benefits historically low claim rate. Despite being worth up to £4,000 a year, the take-up of pension credit has hovered between 61 and 66 per cent for a decade.
Claimed by 1.4 million individuals, pension credit is designed to bring low-income pensioners’ funds up to a liveable level. Under current entitlement, claimants will see their incomes topped up to at least £227.10 a week.
The first-of-its-kind analysis from the DWP also reveals regional disparities in the take-up of the benefit. It shows that the South West was missing out the most, at 55 per cent take-up, while take-up in the North East stood at 71 per cent.
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The decision to restrict the winter fuel payment to only those in receipt of pension credit last year was criticised by campaigners (Getty Images)
On a local level, the council where the least eligible pensioners are claiming is Cotswold, at just 44 per cent, while the most is Tower Hamlets in London, at 83 per cent.
Minister for pensions Torsten Bell said: “We’re committed to supporting harder-up pensioners however we can. Pension Credit is a simple way to give those who need it the most some extra support with bills or a free TV licence.
“I’d urge anyone who thinks they, or anyone they know, might be able to claim Pension Credit, to take a few minutes out of their day to check and apply. This country’s pensioners deserve every penny they are entitled to.”
Following a drive to boost pension credit take-up after the changes to the winter fuel payment were announced, 56,700 extra households claimed the benefit, according to the DWP. It will be followed up by a new trial consisting of letters being sent to 2,000 pensioners across England.
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Minister for pensions Torsten Bell said: “We’re committed to supporting harder-up pensioners however we can” (Jordan Pettitt/PA) (PA Wire)
But more must be done to get this vital benefit to the country’s poorest pensioners, campaigners have urged. Caroline Abrahams, Age UK charity director, said: “Unfortunately, the latest Government figures show that Pension Credit take-up has fallen and the average amount unclaimed has increased substantially, showing those most in need are still not receiving money that they’re rightfully entitled to.
“We welcome the Government’s new analysis looking at the areas of the country where people are especially likely to be missing out. This is the case for older people living in rural areas. This could be because of isolation, lack of access to services or poor digital connections.
“It is vital that people in all areas of the country have advice services they can access to help them claim their entitlements, especially as take-up is going in the wrong direction.”
A DWP spokesperson said: “We have carried out our biggest ever Pension Credit campaign across print, broadcast and online channels to boost uptake and this has seen 57,200 additional pensioners receive the benefit.
“We have also conducted analysis on the regional breakdown of Pension Credit to allow us to better target those who are not currently claiming – including through a trial sending 2,000 targeted letters in partnership with Independent Age and Age UK – while an income threshold of £35,000 ensures pensioners who need Winter Fuel Payment support the most receive it.”
