Pensioners should act now to get money they are owed

Millions of hard-up pensioners who are missing out on money they should be getting to help pay basic household bills, including heating and council tax, should act now to beat the deadline for claims, Citizens Advice warned today.

Official estimates suggest that up to four in 10 pensioners entitled to pension credit – money paid to top up the basic state retirement pension of £87.30 a week - are not getting the extra cash they are due. As much as £2.5 billion went unclaimed in the financial year 2005/06, the most recent year for which figures are available.

Many simply assume they do not qualify, or are daunted by the prospect of making a claim. But in making a claim for pension credit they could increase their income to £119.05 a week for a single person or £181.70 a week for a couple.

If they claim now, some could also get a substantial lump sum, as payment can currently be backdated for up to a year. But this will change from October if Government plans to cut the backdating period to only three months go ahead.

The same new backdating time limit will be applied to council tax benefit, which many pensioners are also missing out on – particularly those who are homeowners. Pensioners who get council tax benefit can find their council tax bills substantially reduced or even paid in full, yet official estimates show barely half of those eligible actually claim the money they are due.

Citizens Advice is also urging people over 60 who have not received a winter fuel payment to check their entitlement well before the March 31 deadline for making claims. Most pensioners receive the £200 payment (£300 for those over 80) automatically, but some people need to make a claim. Most men aged 60-65 and still working are likely to be in this category.

Citizens Advice Director of Policy Teresa Perchard said: “With higher council tax bills dropping through many people’s letterboxes on top of huge hikes in the price of gas, electricity and other household bills, many pensioners are finding it increasingly hard to make ends meet. Yet billions of pounds that should be helping them is going unclaimed every year.

“Too many pensioners are missing out on money that is rightfully theirs. Many don’t know about things like council tax benefit, or think they won’t qualify for help. Others are put off claiming by red tape. But claiming can be simple, and pensioners can get a free, confidential benefits check at any Citizens Advice Bureau. Our advice is to do this without delay. We can also help with making claims and sorting out any problems to do with pensions and benefits as well as debts.

“We very much oppose the government’s plans to drastically cut the time limit for backdating some benefit claims, which will just make it harder for some of the most vulnerable older people, and we are campaigning strongly to try and persuade ministers to change their mind on this. In the meantime, we would urge anyone over 60 to check what they should be getting without delay.”

More information about pensions and benefits for older people can be found on the Citizens Advice website adviceguide.org.uk/index/life/benefits.htm or the Pension Service website thepensionservice.gov.uk