DWP's Recently Released Pension Credit Statistics Discussed by PensionBee
The Department for Work and Pensions has recently released new data, revealing a 16% decrease in both Pension Credit applications and new claims compared to the equivalent period last year. This decrease in applications underscores the need for action, as the government's own data indicates that the low take-up rates of Pension Credit have persisted for over a decade.
Pension Credit, a vital source of extra income for some of the most vulnerable older people, acts as a gateway to further help like cost of living payments and winter fuel payments. However, approximately 700,000 eligible pensioner households are missing out on this support worth up to £4,000 annually, according to the Work and Pensions Committee.
Lisa Picardo, the Chief Business Officer UK at online pension provider PensionBee, has commented on the latest data. She emphasised the need for a joined-up national strategy to ensure every eligible household receives what they are entitled to in terms of Pension Credit. Ms. Picardo also suggested that the momentum in Pension Credit claims is fading.
In an effort to improve the dissemination of information on Pension Credit and Winter Fuel Payment, the Behavioural Insights Team appointed Liz Kendall from PensionBee as an advisor. This move is seen as a step towards clearer communication and simpler claims processes.
The data also indicates a clear boost to Pension Credit claims last summer. This could be attributed to increased awareness campaigns or the initial announcement of Winter Fuel restrictions in 2024, which led to a 44% overall increase in the year following the announcement.
It is crucial that no one should face pensioner poverty due to an administrative barrier or lack of awareness regarding Pension Credit. Clearer communication, simpler claims processes, and a joined-up national strategy are needed to address the persistent issue of low Pension Credit take-up rates. The hope is that these measures will help ensure that every eligible household receives the support they are entitled to.
