Pensioners urged to claim sum worth £3,000 as 5% fall in cost of living looms | Personal Finance | Finance
The state pension often forms a primary source of income for older Britons. However, this is only increasing by 3.1 percent this year, while inflation has already soared to 6.2 percent and rising.
As a consequence, pensioners and experts alike are worried about the impacts for older individuals this year.
If the triple lock had been applied as expected, pensioners would have expected an eight percent rise to their sum.
The measure was instead temporarily abandoned, as it was deemed as expensive and unfair on younger taxpayers.
Pensioner poverty remains a major concern, particularly with energy bills rocketing.
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Consequently, a pension expert is now calling for more to be done to draw Britons’ attention to Pension Credit.
Currently, there are an estimated 850,000 households who are eligible for the payment, but not claiming it.
The sum is worth on average £3,000 a year according to DWP figures, and thus could make a huge difference in the lives of pensioners.
Pension Credit tops up what people get from the state to a level approximate to the full state pension.
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It also allows people to get other forms of help such as a Cold Weather Payment, and a free TV licence for those over 75.
However, Henry Tapper, Chair of Pension Playpen and Age Wage, has argued not enough is being done to encourage take-up of the vital payment.
He said: “With inflation rocketing, take up of Pension Credit is a particularly urgent issue right now.
“The Spring Statement was shocking news for pensioners. They will have their worst year for living standards since records began with household disposable income falling faster than at any time in the last 70 years.
“If the triple lock had been applied this year, pensioners would have expected a state pension increase of eight but are instead facing a real fall in the cost of living of five percent. For those on the breadline, that is five they cannot afford to lose.
“It is a disgrace that we have pensioners living in poverty, whilst at the same time 850,000 households are not claiming this much needed benefit.”
As a result, Mr Tapper has called for a “strategic solution” to fix the Pension Credit take-up issue.
Many Britons are unaware the support exists, others do not know they are eligible, while some worry that by claiming they will lose out elsewhere.
Mr Tapper also stated the delivery of Pension Credit should potentially be “automated” rather than “relying on the current difficult application process”.
He added: “The efforts of the DWP to get the message out through regional newspapers is welcome, but more can and should be done.
“I am told by the Minister that there is a Pension Credit Taskforce, but it seems very low profile and can’t even be Googled.
“Promotion shouldn’t be left to Martin Lewis, the pension industry should be getting stuck in.”
A DWP spokesperson recently told Express.co.uk: “The one-year move to temporarily suspend the triple lock ensures fairness for both pensioners and taxpayers. From April, the full yearly amount of the basic state pension will be over £2,300 higher than in 2010 and we continue to encourage those eligible for Pension Credit, and the wide range of other benefits it can provide, to make a claim.”
Express.co.uk has contacted the Department for further comment.
