The Department for Work and Pensions (DWP) has announced significant changes to the application process for Pension Credit, a benefit designed to assist individuals of state pension age with low income. During recent discussions with the Work and Pensions Committee, DWP officials revealed that many eligible individuals are not claiming the support they are entitled to, with over 910,000 people missing out on benefits in the 2024/2025 tax year.
Encouraging Applications and Streamlining Processes
Peter Schofield, the DWP’s permanent secretary, emphasized the department’s commitment to increasing Pension Credit applications. He pointed out that the traditional paper form, which contains approximately 200 questions, has become less popular. Currently, only around 10 percent of applicants use this method. The shift towards telephony and online applications is intended to simplify the process for applicants.
Schofield explained that the complexity of the paper form, which includes questions tailored to specific circumstances, can discourage potential applicants. For instance, families with children or individuals with disabilities face additional questions that may not apply to everyone. In contrast, the online and telephony channels allow applicants to answer only those questions relevant to their situation, making the application process faster and more efficient.
“With the online or the telephony channel, we just take you to the questions that you need to answer that are relevant to you. That makes the whole process much more streamlined and enables us to get through the claims more quickly,” Schofield stated. He noted that the DWP is currently experiencing low outstanding claims within the Pension Credit system.
Understanding Pension Credit Benefits
The typical Pension Credit claim can provide up to £4,300 annually in support, which includes a potential income top-up known as ‘Guarantee Credit’. This benefit increases a single claimant’s income to £227.10 per week, while couples may receive up to £346.60 weekly. Additional amounts are available based on individual circumstances, such as an extra £82.90 per week for severe disabilities or £46.40 for caring for another adult.
In response to inquiries about encouraging applications, a DWP spokesperson stated, “We want all pensioners to get the support they are rightly entitled to, and our biggest ever Pension Credit take-up campaign has seen a record number of claims with nearly 60,000 extra awards this year.” To further boost claims, the DWP has initiated a new trial in collaboration with Age UK and Independent Age, specifically targeting pensioners who are likely eligible but not currently receiving Pension Credit.
As the DWP continues these efforts, it aims to ensure that all eligible individuals receive the financial support they deserve. For those who may qualify, the streamlined application process presents a valuable opportunity to access crucial assistance.
