Source · Select Committees · Work and Pensions Committee
Recommendation 11
11
Rejected
Pension Credit provides vital support for pensioners, yet some 850,000 eligible households do not claim...
Recommendation
Pension Credit provides vital support for pensioners, yet some 850,000 eligible households do not claim it. The rising cost of living means this must now be urgently addressed. The Government’s efforts are focused on a communications campaign. The Committee heard, however, that this was unlikely to be enough. We recommend that the Government work with key stakeholders, including local authorities, to develop a written strategy to increase take-up by the end of 2022. This should include a plan for the most effective ways to identify households likely to be eligible and support them to claim. The Government should also explore ways to simplify or automate parts of the claiming process. The strategy should have clear aims, including a target for take- up, as well as a timeline of actions to be taken to achieve this and confirmation of how the strategy will be funded. The Government should provide an annual update to the select committee on achievements to date and any amendments to the strategy. (Paragraph 66) The cost of living 39
Government Response Summary
The government does not consider that a written strategy or targets for take-up of Pension Credit are required, given the work it is already doing and that automatic awarding is not possible based on current data.
Government Response
Rejected
HM Government
Rejected
The 850,000 figure is an estimate based on the Family Resources Survey. The Department does not consider that a written strategy or targets for take-up of Pension Credit are required, given the work it is already doing. The Department is already working with a wide range of organisations, such as Age UK,BBC and ITV, the Local Government Association, utility companies and financial services companies, to consider ways of reaching eligible pensioners. The Department’s current campaign has been successful in raising awareness of, and increasing applications for, Pension Credit. The Department is looking at processes within Pension Credit which might be simplified. However, as with any means-tested benefit which is designed to target resources on those most in need, eligibility for Pension Credit depends on a household’s composition and financial circumstances, which can be complex. It is not possible to determine eligibility with sufficient accuracy to enable Pension Credit to be awarded automatically, based solely on the data held by Government.