Thousands of pensioners are failing to claim money owed to them, with up to three-quarters of those eligible missing out on an average of £1,339 a year, a new report has revealed.
Figures from retirement specialists Just Group show that more than four in ten (42 per cent) of pensioner homeowners qualify for at least one Government benefit, yet 74 per cent of them are not claiming the support available.
Many of these households are likely to be low-income, making the unclaimed money a significant loss to those who may be struggling to cover day-to-day expenses.
A key factor behind the under-claiming appears to be a lack of awareness. It is thought that some pensioner homeowners are unaware that certain benefits exist or that they are eligible to receive them.
“Our survey once again reveals what appears to be an epidemic of pensioner homeowners missing out on income they are entitled to claim,” said David Cooper, director at Just Group.
He added: “Of those pensioner homeowners eligible for benefits, about three in four were failing to claim any benefit. These are low-income pensioner households likely to be struggling with the cost-of-living crisis.”
The benefits available include guaranteed pension credit, savings pension credit, council tax reductions, and universal credit.
For example, fewer than one in four (24 per cent) pensioners eligible for council tax reductions are claiming them, despite the average new claim being worth over £1,000 per year.
The report also breaks down the extent of missed benefits: six in ten (62 per cent) of pensioners were failing to claim at least one key benefit, 12 per cent were missing out on two, and five per cent were not claiming three.
Even among those managing to claim benefits, many were receiving less than they were entitled to. Nearly one in seven (14 per cent) were under-claimed, losing an average of £1,162 per year. In one striking example, a pensioner was missing out on £113.03 a week, equivalent to £5,877 annually.
Mr Cooper said: “Benefits like pension credit are not paid automatically but must be claimed, so people need the foresight to check if they are entitled to it. It’s important cash-strapped pensioner households do not simply assume there is no state help available – a five-minute check could unlock thousands of pounds of income each year.”
How to check if you qualify
Use the Government benefits calculator – Check your eligibility for pension credit, council tax reduction and other support by using the official benefits calculator on the Government website.
Contact your local council – Eligibility for council tax reductions is assessed by local authorities, so contact your council directly for guidance and to make a claim.
Check Pension Credit specifically – Pension Credit can be checked and claimed through the Government’s Pension Credit service, either online or by phone.
Seek independent advice – Free, impartial support is available from organisations such as Citizens Advice, which can help you understand what you may be entitled to and how to apply.
