Source · Select Committees · Work and Pensions Committee
Recommendation 11
11
Accepted
Paragraph: 67
Devise and implement policy addressing unfairness for low-income pensioners missing Pension Credit.
Recommendation
We commend the Government’s efforts to promote Pension Credit to those entitled to it, though there is still more to do to increase take-up as we remarked on in our July 2022 Cost of Living report. We remain concerned that there are low-income pensioner households who may just miss out on Pension Credit and as a result are significantly worse off compared to those who receive it and its passported benefits, including cost of living payments. The Government should devise and implement a policy to address this unfairness.
Government Response Summary
The government describes its ongoing substantial nationwide campaign to promote Pension Credit to those eligible but states its immediate focus remains on encouraging eligible individuals to claim it, without committing to a new policy for those who just miss out.
Paragraph Reference:
67
Government Response
Accepted
HM Government
Accepted
Pension Credit provides additional support with daily living costs for people who are over State Pension age and on the lowest incomes. Pensioners with a severe disability, carers and those who are responsible for a child or young person who lives with them can have a higher level of income and still qualify. The Government wants all those eligible to claim. Since April last year the Department has run a substantial and sustained nationwide campaign promoting Pension Credit in a variety of ways – including press advertising, on the radio and social media, via internet search engines and on screens in Post Offices and GP surgeries. It has also used sponsored advertising on targeted websites that pensioners, their family and friends are likely to visit. Over 11 million pensioners will receive information about Pension Credit with the notification of increases to their State pensions from April 2024. A leaflet accompanying the notification will include a prominent ‘call to action’ using the Pension Credit campaign messaging in order to encourage eligible pensioners to make a claim. The Department’s latest initiative is the “Invitation to Claim” trial which involves sending letters to approximately 2,500 pensioner households identified via Housing Benefit data as being most likely to be entitled to Pension Credit and encouraging them to contact DWP and make a claim. The trial will test whether this is a reliable way of identifying households entitled but not claiming Pension Credit and whether targeting them directly is effective. In terms of those who may just miss out on Pension Credit, the introduction of the new State Pension in April 2016 was intended, in part, to reduce the role of means-testing in the State Pension system. The full rate of the new State Pension was therefore set above the level of the Standard Minimum Guarantee for a single person in Pension Credit. However, since the State Pension is not targeted on those on low incomes, eligibility for the means- tested Cost of Living Payments was linked instead to Pension Credit. All pensioners, regardless of income, receive the £300 Pensioner Cost of Living Payment. The Department notes the Committee’s broader interest in the question of whether Government or other bodies should link access to certain types of help or support to receipt of Pension Credit or should find alternative ways to identify pensioner households on low incomes. The Department’s immediate focus, however, remains on encouraging those who would be entitled to Pension Credit to claim it.