State pension boost could help millions of women who get ‘thousands’ less | Personal Finance | Finance
The introduction of the new state pension in 2016 has gone some way to evening out the gender gap with women on average receiving £164.74 per week compared to £170.50 for men. In comparison, women on the basic state pension on average receive £145.87 compared to £172.64 for men.
There were 12.5 million people receiving the state pension in August 2021. Of these, 2.2 million received the new state pension.
Far more women than men receive Pension Credit, as they account for around 930,000 of the current 1.4 million people claiming.
However, the number of people receiving Pension Credit has decreased since last year.
This is believed to be due to factors such as the rising state pension age and the introduction of the new state pension. Only around six in 10 people eligible for Pension Credit claim it.
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Ms Morrissey believes many of these women will be eligible to claim Pension Credit, and urged them to find out if they qualify.
She continued: “Pension Credit is a hugely important benefit and can top up your income to £177.10 per week if you are single or £270.30 if you are part of a couple.
“It also acts as a valuable gateway to other benefits such as help with bills and NHS costs. If you are over 75 you will also get a free TV licence.
“However, it remains a hugely underclaimed benefit – only around 60 percent of those who can claim it do and they are potentially missing out on thousands of pounds of much needed money.
“This is particularly important at a time when the cost of living is rising so sharply.”
Britons can still be eligible for Pension Credit if they have some savings or own their own home.
Anyone who thinks they might be eligible can use the Government website or call 0800 99 1234 to find out more.
Becky O’Connor, Head of Pensions and Savings, interactive investor, gave some insight as to why women often have less state pension.
She said: “The gender pension gap in the workplace is caused by women earning less and being more likely to take time out of work for childcare and other care demands.
“The consequence of this is more women being dependent on the state later in life.
“However, they usually get less here, too, because they have often taken more time out of work.
“Policies that help to redress the gender pension gap in the workplace should mean that fewer women have to rely on benefits to support them in old age.”
