House of Commons · Westminster Hall
26 October 2022 · 6 other contributors · 7,394 words
Opened by Anne McLaughlin SNP Glasgow North East
Responding minister: Alex Burghart
Summarised by AI from the official record, so it can contain mistakes.
Anne McLaughlin raised concerns about pension credit and cost of living support grant in Westminster Hall. A government minister responded.
Key points
Key requests to Government
The Member asks the Government to extend the deadline for eligibility for the cost-of-living support grant until March 31st next year. She also requests clarity on the exact date in December when half payments will be issued and a strategy to raise awareness among eligible recipients.
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
The Member is worried about the low uptake of pension credit, which stands at around 60%, despite many older people living in poverty. She mentions that £7.7 million goes unclaimed in her constituency and £2.2 billion annually across the UK. Concerns include stigma associated with applying for benefits, perceived complexity of the application process, and lack of awareness about pension credit.
The hon. Member highlighted that pensioners are facing severe financial difficulties due to the cost of living crisis, exacerbated by Tory economic mismanagement. She cited a Joseph Rowntree Foundation report stating 2.1 million UK pensioners live in poverty, nearly one-fifth of all pensioners. Age UK warned pensioners have had to switch off vital medical equipment to save on energy costs. Only seven in ten eligible for pension credit claim it, leaving over £1.7 billion unclaimed annually and impacting more than 800,000 families.
Gerald Jones reported on a pension credit day of action where over 200 people attended, resulting in an increase in income via benefit take-up by over £200,000. He questioned why the DWP does not contact eligible but unregistered individuals directly to encourage them to apply for benefits.
Families and pensioners are facing an unprecedented cost of living crisis with dramatic rises in the prices of everyday foods, such as bread and tea. Pension credit is crucial for those on modest incomes, yet nearly 1 million eligible pensioners do not claim it, missing out on £1,900 per household annually.
The Member agrees that raising awareness is crucial, questioning the Government's strategy in place prior to the August deadline and expressing hope for a comprehensive strategy moving forward.
Independent Age's analysis shows that around one in six older people in the UK live in poverty. Rebecca Long-Bailey highlighted that over £6.3 million of pension credit is unclaimed this year in Salford alone, and if everyone who is eligible received it, roughly one in three pensioners in poverty would be lifted out of it. She urged the Government to extend the eligibility period for the £650 pension credit cost of living grant to the end of the financial year.
Richard Foord expressed concern about pensioner poverty in his constituency, noting that while 25,000 people receive the basic state pension, it is difficult to determine how many are eligible for but not receiving pension credit. He suggested restarting monitoring by the Department for Work and Pensions to ensure those who need support can access it.
Government Response
Alex BurghartIt is a pleasure to serve under the chairmanship, addressing an important debate on pension credit and cost of living support. The Government has invested more than £37 billion this year on cost of living support and delivered the energy price guarantee. Total expenditure on benefits for pensioners will be over £134 billion in 2022-23, representing about 5.4% of GDP. Pension credit provides an essential top-up to a person's state pension, ensuring that single pensioners receive at least £182.60 per week and couples receive at least £278.70 per week. A paid advertising campaign was launched in April, including a promotional video fronted by Len Goodman, which has been viewed over a million times. The Department for Work and Pensions recorded a 275% increase in claims following the pension credit day of action on 13 June compared to the same week in 2021. Weekly claims tripled between December 2021 and August 2022, indicating a genuine increase in traffic. The latest estimates show that there are still substantial numbers of people who may be eligible for pension credit but are not claiming it, hence encouraging everyone to reach out to networks and use resources such as the pension credit calculator on gov.uk. Pensioners above state pension age must claim pension credit to qualify for means-tested benefits cost of living payments. The £650 cost of living payment is designed to target those on low incomes, with a deadline of 19 December for second cost of living payment eligibility. The Department will continue working to increase take-up of pension credit and ensure vulnerable pensioners receive the support they need.