The Department for Work and Pensions (DWP) has introduced a new system aimed at simplifying the application process for Pension Credit, a vital benefit for those of state pension age with low income. This initiative comes as research shows that over 910,000 eligible individuals are not claiming the support they are entitled to, resulting in significant underutilization of available benefits.
During a recent session with the Work and Pensions Committee, Peter Schofield, the DWP’s permanent secretary, outlined the department’s efforts to encourage greater uptake of Pension Credit. He emphasized that many people fail to apply due to the complexities associated with the traditional paper application process.
Shifting to a Digital Approach
The DWP has noted a marked shift in how applications are submitted, with only around 10 percent of applicants using paper forms. Schofield explained that the paper application, which contains approximately 200 questions, often leads to confusion. The form includes inquiries specific to individual circumstances, such as having children or disabilities, which can complicate the process for many applicants.
By transitioning to online or telephone applications, the DWP aims to streamline requirements. Schofield stated, “With the online or the telephony channel, we just take you to the questions that you need to answer that are relevant to you.” This approach not only simplifies the experience for users but also accelerates the processing of claims.
The typical Pension Credit claim amounts to approximately £4,300 annually, which includes a potential income top-up under the Guarantee Credit scheme. For single claimants, this can increase income to £227.10 per week, and £346.60 per week for couples. Additional support may be available for those with severe disabilities or for individuals caring for another adult.
Ongoing Campaigns to Increase Awareness
In light of the substantial number of unclaimed benefits, the DWP has embarked on an extensive outreach initiative. A spokesperson for the department remarked, “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 assist in this objective, the DWP has partnered with organizations such as Age UK and Independent Age for targeted outreach efforts aimed at pensioners most likely to qualify for Pension Credit but who have not yet applied.
The DWP’s proactive measures reflect a commitment to ensuring that eligible individuals receive the assistance they need. With the new streamlined application process and ongoing awareness campaigns, officials are hopeful that more pensioners will take advantage of this essential support.
