Three-quarters of pensioners miss out on £1,300 payment they don’t know they’re entitled to

Three-quarters of pensioners miss out on £1,300 payment: A recent report has revealed a shocking truth: thousands of pensioners in the United Kingdom are missing out on significant sums of money they are entitled to every year. This isn’t a small amount, but an average of £1,339 per year, which could significantly improve their standard of living. Most surprisingly, many of these individuals come from low-income families and are already facing financial hardship due to the current cost of living crisis. Despite this, they are not claiming the government benefits they are fully entitled to.

How many pensioners are eligible and how many are not claiming?

According to data released by retirement specialist Just Group, approximately 42 percent of pensioner homeowners are eligible for at least one financial benefit provided by the government. These benefits are designed to provide financial relief to pensioners, helping them maintain a dignified life amidst rising living costs.

However, the real concern is that nearly 74 percent of these eligible pensioners are not claiming these benefits. This means that almost three out of four elderly people are simply leaving money on the table. The report indicates that most of these pensioners are from low-income families, for whom this extra money could be crucial in covering essential expenses such as daily living costs, medication, energy bills, and council tax.

Lack of awareness is the biggest reason

The biggest reason behind this problem is believed to be a lack of information and awareness. Many pensioners are simply unaware that such benefits exist, or they believe they are not eligible. Some assume that if the government hasn’t automatically provided the money, then they are not entitled to it.

David Cooper, Director at Just Group, described the situation as extremely serious, calling it “a kind of epidemic” where pensioner homeowners are consistently missing out on opportunities to increase their income. According to them, three-quarters of eligible pensioners are not claiming any benefits, even though they are already struggling with inflation and rising costs.

What government benefits are available?

The main government benefits mentioned in the report are crucial for pensioners. First and foremost is the Guaranteed Pension Credit, the main support scheme for low-income elderly people. Other benefits include Savings Pension Credit, Council Tax reduction, and in some cases, Universal Credit.

Importantly, Guaranteed Pension Credit is not just one benefit; it also opens the door to several other entitlements. For example, those eligible often become entitled to additional support such as the Winter Fuel Payment, which helps reduce the burden of energy bills during the colder months.

Council Tax Reduction: The most overlooked benefit

The report also revealed that benefits like Council Tax Reduction are being significantly underclaimed. Only 24 percent of eligible pensioners are actually claiming it. This means three out of four people are missing out on potential savings of over £1,000 every year.

This amount could be enough for many elderly people to cover their annual energy bills or essential household expenses. Despite this, a lack of awareness or fear of complex application processes prevents people from claiming it.

Why is Guaranteed Pension Credit the most important?

According to David Cooper, Guaranteed Pension Credit is the most important means-tested benefit for the elderly. It provides additional income to those whose pensions and other income fall below a certain threshold. The report found that more than two-thirds of those eligible were not claiming it.

This means that millions of pounds of government support go unclaimed every year, while pensioners struggle with inflation, healthcare costs, and rising energy prices.

The problem of missing out on multiple benefits

The report also shows that the problem is not limited to just one benefit. Of the pensioners who hadn’t claimed, 62 percent were missing out on one major benefit, 12 percent on two benefits, and nearly 5 percent were receiving nothing at all, even though they were entitled to three different benefits.

This means that some elderly people are losing out on thousands of pounds in potential income every year, money that could make their lives far more secure and comfortable.

Even those who claim aren’t receiving the full amount

Surprisingly, even among pensioners who are claiming benefits, many are not receiving the full amount they are entitled to. According to the report, approximately 14 percent are receiving benefits but are getting less than they should. On average, they are missing out on around £1,162 in additional income each year.

This situation highlights that simply claiming isn’t enough; having the correct information and regularly reviewing one’s circumstances is also crucial.

What is the solution, and what should pensioners do?

Experts believe the simplest solution to this problem is to get informed and conduct a quick check. Pension Credit and other benefits are not automatically granted; an application is required. The good news is that checking eligibility often only takes a few minutes.

David Cooper says that pensioners shouldn’t assume that no government assistance is available to them. A little effort could result in thousands of pounds of extra income every year. This can be a great relief for any elderly family in the current times.

Conclusion: Knowing your rights is true power

This report clearly indicates that the biggest challenge for pensioners is not a lack of money, but a lack of information. If the benefits provided by the government are availed of at the right time and in the right way, the lives of millions of elderly people could be significantly improved. Therefore, it is crucial that pensioners and their families take the time to check their eligibility, ask questions, and not hesitate to claim the money they are entitled to.

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