3 February 2005 - Pension Credit now helping over 80% of poorest pensioners
New figures for the number of pensioners receiving Pension Credit, taken with previous estimates of entitlement, indicate that over 80 per cent of the poorest pensioners are now having their income topped up to the guaranteed level, which is at least £105 per week – rising to £109 in April this year.
Amongst single women pensioners, who tend to be poorer than men of the same age, the indications are that as many as 90% of those eligible for the guarantee are already receiving their entitlement.
The figures, which have been released today by the Department for Work and Pensions, show there are 2.08 million pensioner households (or 2.46 million individuals) currently benefiting from Pension Credit guarantee awards. Estimates of eligibility suggest that the total number of pensioner households entitled to this part of Pension Credit stands at 2.35 million.
This high level of take-up means Pension Credit spending is projected to exceed £6 billion in 2004/05 – higher than forecast in the last Budget.
Secretary of State for Work and Pensions, Alan Johnson, said:
“These figures show beyond doubt that Pension Credit, is delivering for our poorest pensioners.
“There are now over 3 million pensioners in receipt of Pension Credit. The next stage is to concentrate effort on increasing take-up among those in harder to reach groups – especially those who have never been entitled to extra help before. We have a number of initiatives to ensure the message gets out to all those who need to hear it.
“These include the Race to Improve project, to target ethnic minority groups, and the new Pension Service Partnership Fund, which provides funding for schemes run by not-for-profit organisations around the country.
“To ensure that pensioners do not lose out we have a twelve month backdating provision, so many new claimants could be in line for a lump sum payment, averaging around £1000.”
Most of the pensioners getting Pension Credit guarantee – and some other households – also get reward for their savings. The total number of households benefiting from Pension Credit is now 2.65 million (3.22 million individuals). The average weekly award is £41.67 and there were 1.99 million households (2.41 million individuals) now receiving more money than under the previous system.
Pension Credit has been payable since 6th October 2003. To find out if you may be entitled, ring the freephone Pension Credit application line: on 0800 99 1234. There is a textphone service for those who have speech or hearing difficulties on 0800 169 0133.
Notes for editors
- Pension Credit progress reports are published quarterly. Figures have been rounded to the nearest 10,000.
- To ensure that people do not lose out, customers whose applications are successful will have their entitlement backdated 12 months or to the date of entitlement if this is later.
- Pension Credit guarantees everyone aged 60 and over an income of at least £105.45 for single people and £160.95 for couples. From April, these amounts rise to £109.45 and £167.05.
- Extra amounts will be added for those who have relevant housing costs, severe disabilities or caring responsibilities. Rewards for those who have saved are also additional.
- Pension Credit application line on 0800 99 1234. There is a textphone service for those who have hearing difficulties on 0800 169 0133.
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