6 July 2004 - Pension Credit – helping the poorest pensioners
A new report today showed that 1.83 million pensioner households are getting more money thanks to Pension Credit than was the case under the old Minimum Income Guarantee (MIG) system.
The report, ‘A review of the campaign to May 2004’, published by the Department for Work and Pensions, revealed that 270,000 households that were eligible for MIG but did not take up their entitlement, are now claiming Pension Credit. More pensioners are receiving more money than they ever did before. For example, by March 2004 over 630,000 households were receiving between £20 and £30 each week, an increase of 74% on MIG levels. The 1.83 million households now gaining through Pension Credit are on average better off by £15.14 a week.
Welcoming the report, Pensions Minister, Malcolm Wicks, said:
“This report shows what Pension Credit is all about: Helping the poorest pensioners.
“We are now delivering significant help to those poorer pensioners who for decades have been ignored. The extra money that Pension Credit represents each week is significant with the average weekly payment for May at £42.42. This is the sort of vital help that will be missed out on if Pension Credit were to be scrapped.
“Our staged take-up plan and backdating process has also helped to ensure that customers have been able to make their application and no-one should miss out. Our research has showed us that customers have been pleased with the both the application process and the Pension Service staff that they have dealt with.”
The report showed that in the eight months since the first Pension Credit payment:
- 2.5 million households (3 million people) receive an average weekly payment of £42.42.
- 1.83 million households (2.22 million people) receive more money under Pension Credit than under MIG.
- 1.76 million households (2.11 million people) have been rewarded for modest retirement incomes and savings, including 1.28 million of the poorest pensioner households.
- With the introduction of Pension Credit, around 2 million pensioner households now qualify for more help or qualify for help for the first time with their council tax and/or rent.
The campaign now moves to the next phase which is to reach those traditionally ‘hard to reach’ groups and members of the community. The Pension Service will be undertaking a more targeted approach with advertising across communities, local initiatives with partner organisations and products designed to tackle the concerns and issues customers may have.
Malcolm Wicks added:
“Ensuring that we communicate effectively to all members of the community is something that is very important to me and it’s vital that the department takes all steps necessary to ensure that everyone has access to information they can understand. We have successes with the Pension Service bus, local surgeries and home visits amongst others but we need to ensure we are always looking at new approaches.”
The report provides an analysis of how much pensioners have benefited through Pension Credit as well as customers’ experience of the application line, the application procedure and the marketing campaign. Successful claims can be backdated to October 2003 or to the date of entitlement if that is later.
Pension Credit applications can be made via the freephone Pension Credit application line on 0800 99 1234. There is a textphone service for those who have hearing difficulties on 0800 169 0133.
A Pension Credit calculator is also available on the Pension Service Website where people can get an estimate of any possible Pension Credit award at: http://www.thepensionservice.gov.uk/pensioncredit/calculator/home.asp
Notes for editors
[an error occurred while processing this directive]- A copy of the report, ‘A review of the campaign to May 2004’ is available at:
www.dwp.gov.uk/publications/dwp/2004/pension_credit/rev_campaign_may04.pdf
(690KB) - Pension Credit replaced the Minimum Income Guarantee (MIG) and has been payable since October 6th 2003.
- The Pension Credit application line is open 8am to 8pm Monday to Friday and 9am to 1pm on Saturday.
- Pension Credit guarantees everyone aged 60 and over an income of at least £105.45 for single people and £160.95 for couples.
- Pensioner households who were not receiving MIG as at April 2003 have been contacted through a personalised letter inviting the customer to make an application.
- Extra amounts will be added for those who have relevant housing costs, severe disabilities or caring responsibilities
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