The DWP is to send out letters to 2,000 people of state pension age to urge them to apply for Pension Credit as part of a new trial.
Letters and leaflets are going out to people of state pension age who are claiming Housing Benefit, and who will likely also qualify for Pension Credit.
The hugely underclaimed benefit tops up a single person’s income to £201.05 a week and up to £306.85 a week for couple claimants, and can be worth more than £3,500 a year in payments.
Some 850,000 people are thought to be missing out on the benefit, which a person can claim even if they are not claiming their state pension.
Alice Guy, head of Pensions and Savings at interactive investor, said the trial was a “great step in the right direction” in ensuring hard-up pensioners get the support they are entitled to.
She said: “The average pension credit award is £3,500 each year which is a life-changing amount for poorer pensioners.
“It’s worth applying even if you’ll only get a small amount as it opens the door to other valuable benefits that could make a big difference to your retirement income.”
The ten local authorities where the letters will be sent out include:
- Eastbourne
- Teignbridge
- Pendle
- Charnwood
- Vale of White Horse
- Redcar and Cleveland
- Craven
- Harrow
- Powys
- West Lothian.
Pensions minister Laura Trott said: “Pension Credit take-up is at the highest level since 2010, and this trial will help us test even more ways to ensure pensioners are receiving all the support they can.
Pensions minister Laura Trott said: “Pension Credit take-up is at the highest level since 2010, and this trial will help us test even more ways to ensure pensioners are receiving all the support they can.
“Those under pension age can also help by checking in with older loved ones and asking them to consider if they could be eligible for this extra financial support.”
Extra payments are available through Pension Credit such as if a claimant has a disability or caring responsibilities.
Claiming the benefit may also entitle a person to receive the final two instalments of a £900 cost of living payment going out this financial year.
People on certain means-tested benefits, including Universal Credit and Pension Credit, may be eligible for the payments.
The second payment for £300 is going out in autumn 2023 while the third instalment of £299 is going out in spring 2024.
A person can find out how much Pension Credit they could claim using a calculator tool on the Government website.
The current full basic state pension is £156.20 a week while the full new state pension is £203.85 a week.
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