Pensioner homeowners urged to check for £1,800 unclaimed income
Cash-strapped pensioner homeowners are missing out on thousands of pounds of extra income by failing to claim their full entitlement to key means-tested benefits from the Department for Work and Pensions (DWP). Just Group’s 15th annual State Benefits insight report found that eight in 10 (79%) pensioner homeowners were failing to claim any of the benefits they were eligible to receive, missing out on an average of £1,807 a year extra income.
The retirement specialists discovered that nearly one in 10 (9%) pensioners who were claiming were receiving too little, missing out on an additional £2,915 a year, on average. Stephen Lowe, group communications director at Just Group, said: “Despite the focus on benefit as a result of the UK Government’s decision to axe Winter Fuel Payments to millions, our survey once again shows the scandalous scale of the under-claiming problem.”
READ MORE: State Pension uprating in April will not be paid to nearly half a million older people
READ MORE: DWP confirms new State Pension weekly and monthly payment rates from April
He continued: “Of the one-third of pensioner homeowners eligible for benefits, the proportion failing to claim remains very high while the amounts unclaimed are larger than for more than a decade. This is real cash that should be helping low-income pensioners deal with the cost-of-living crisis.
“Figures for Pension Credit - the main means-tested benefit for older people - are particularly worrying because it is a gateway to other benefits such as Winter Fuel Payment. Only about one in 10 pensioners are eligible but we found 90 per cent of them were missing out.”
The research is based on in-depth fact-finding interviews with clients seeking advice on equity release during 2024. It shows 33 per cent were entitled to one of the key benefits. Of those eligible, nearly eight in 10 (79%) were not claiming any benefit and one in 10 (9%) were claiming less than they were entitled to.
Stephen explained: “The survey is based on findings from specialist equity release advisers from our sister company HUB Financial Solutions who thoroughly check State Benefit entitlement. This ensures clients receive any income that could remove or reduce the need for them to release any funds from their property.”
The highest amount of extra income uncovered was £145.37 a week due to a couple in their mid-70s living in Suffolk. Although not claiming anything, the advisers found they were eligible each week for £95.26 Guaranteed Pension Credit, £19.04 Savings Pension Credit and £31.07 Council Tax Reduction - a total of £7,560 a year in extra income.
In total, more than half (58%) of those missing out on income were entitled to benefits worth at least £1,000 a year.
Main unclaimed benefits
Guarantee Pension Credit is the main benefit targeted at helping low-income pensioners. It was being claimed by only one in 10 of those pensioner homeowners who were eligible. Households failing to claim were losing an average £1,391 extra income per year.
Savings Pension Credit - only 8 per cent were eligible for the ‘top up’ benefit for low-income pensioners who have modest savings. Only a quarter (25%) of those eligible were claiming, with the average annual loss £933 per household.
Council Tax Reduction should be claimed by nearly three in 10 (29%) of households, but only a quarter of those were actually claiming with the average annual loss £1,067.
Universal Credit - about a third of the lifetime mortgage enquiries who received advice were below State Pension age, potentially eligible for Universal Credit. Although actual eligibility rates were low, the take-up rate was just 50 per cent with those households not claiming missing out on £2,626 on average.
The latest UK Government estimates suggest that in 2022/23 take-up of Guarantee Pension Credit was 72 per cent and take-up of Savings Pension Credit was 42 per cent. Overall, 760,000 pensioner families entitled to receive Pension Credit did not claim, totalling about £1.5 billion or around £1,900 a year for each family on average.
Stephen said: “Our take-up figures for homeowners are a little lower than the overall rates published by the government, suggesting some people may think owning a home rules them out of receiving State support.”
Research by Just Group’s sister company HUB Financial Solutions found more than a third (38%) of over-65 homeowners had never checked their entitlement to State Benefits with a further 19 per cent unsure or unable to remember when they last checked.
Stephen added: “These findings once again raise questions about the support and guidance available to people heading into retirement and beyond. Pension Credit is not automatically paid but must be claimed - we would urge those who don’t know about it or assume they are not eligible to check if they are entitled. It could unlock thousands of pounds of income each year.”
Who can claim Pension Credit?
There are two types of Pension Credit - Guarantee Credit and Savings Credit.
To qualify for Guarantee Pension Credit , you must be State Pension age (66). Your weekly income will need to be less than the minimum amount the UK Government says you need to live on.
This is £218.15 for a single person and £332.95 for a couple - this amount could be higher if you're disabled, a carer or have certain housing costs.
You can only get Savings Credit if:
you reached State Pension age before April 6, 2016, or you have a partner who reached State Pension age before this date and was already receiving it
you have qualifying income of at least £189.80 a week for a single person and £301.22 a week for a couple
How much could you receive from DWP?
Guarantee Credit tops up your weekly income to:
£218.15 for a single person
£332.95 for a couple (married, in a civil partnership or cohabiting)
You might be able to get more than this if you're disabled or a carer, or you have certain housing costs.
Savings Credit can give you up to:
£17.01 a week for a single person
£19.04 a week for a couple (married, in a civil partnership or cohabiting).
The exact amount you’ll get depends on your income and savings. Your income includes assumed income from savings and capital over £10,000.
How to check eligibility for Pension Credit
Older people, or friends and family, can quickly check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator on GOV.UK here.
Alternatively, pensioners can contact the Pension Credit helpline directly to make a claim on 0800 99 1234 - lines are open 8am to 6pm, Monday to Friday.
Expert help and advice is also available from:
More details about claiming Pension Credit can be fond on GOV.UK here.
Other help if you get Pension Credit
If you qualify for Pension Credit you can also get other help, such as:
Housing Benefit if you rent the property you live in
Support for Mortgage Interest if you own the property you live in
Council Tax discount
Free TV licence if you are aged 75 or over
Help with NHS dental treatment, glasses and transport costs for hospital appointments
Help with your heating costs through the Warm Home Discount Scheme or Winter Fuel Payments
A discount on the Royal Mail redirection service if you are moving house
Mixed aged older couples and Pension Credit
In May 2019, the law changed so a ‘mixed age couple’ - a couple where one partner is of State Pension age and the other is under it - are considered to be a ‘working age’ couple when checking entitlement to means-tested benefits.
This means they cannot claim Pension Credit or pension age Housing Benefit until they are both State Pension age. Before this DWP change, a mixed age couple could be eligible to claim the more generous State Pension age benefits when just one of them reached State Pension age.
How to use the Pension Credit calculator
To use the calculator on GOV.UK, you will need details of:
earnings, benefits and pensions
savings and investments
You’ll need the same details for your partner if you have one. You will be presented by a series of questions with multiple choice answer options.
This includes:
Your date of birth
Your residential status
Where in the UK you live
Whether you are registered blind
Which benefits you currently receive
How much you receive each week for any benefits you get
Whether someone is paid Carer’s Allowance to look after you
How much you get each week from pensions - State Pension, private and work pensions
Any employment earnings
Any savings, investments or bonds you have
Once you have answered these questions, a summary screen shows your responses, allowing you to go back and change any answers before submitting. The Pension Credit calculator then displays how much benefit you could receive each week.
All you have to do then is follow the link to the application page to find out exactly what you will get from the DWP, including access to other financial support.
There’s also an option to print off the answers you give using the calculator tool to help you complete the application form quicker without having to look out the same details again. Try the Pension Credit Calculator for yourself or your family member to make sure you’re receiving all the financial support you are entitled to claim.
Who cannot use the Pension Credit calculator?
You cannot use the calculator if you or your partner:
are deferring your State Pension
own more than one property
are self employed
have housing costs (such as service charges or Crown Tenant rent) which are neither mortgage repayments nor rent covered by Housing Benefit
How to make a claim
You can start your application up to four months before you reach State Pension age. You can claim any time after you reach State Pension age but your claim can only be backdated for three months.
This means you can get up to three months of Pension Credit in your first payment if you were eligible during that time.
You will need:
your National Insurance number
information about your income, savings and investments
your bank account details, if you’re applying by phone or by post
If you’re backdating your claim, you’ll need details of your income, savings and investments on the date you want your claim to start.
Apply online
You can use the online service if:
you have already claimed your State Pension
there are no children or young people included in your claim
To check your entitlement, phone the Pension Credit helpline on 0800 99 1234 or use the GOV.UK Pension Credit calculator here to find out how much you could get.
