Statistics published today by the DWP, reveal that just 65% of older people who are entitled to Pension Credit were receiving the payment between April 2022 and March 2023.
Independent Age estimate that in Scotland this means that up to 70,000 older households could be missing out on the Pension Credit they are entitled to, with a combined value of £140 million.
We know there has been an increase in applications since the UK Government announcement that the Winter Fuel Payment would be means tested, but it is unclear how many of these will result in successful claims.
Both Governments must work together to address the issue of low take-up of Pension Credit and the unacceptably high levels of poverty in later life. Independent Age is urging the UK Government to review and ensure overall adequacy of the social security system for older people, to prevent pensioner poverty.
Alongside calling on the Scottish Government to introduce a pensioner poverty strategy for Scotland – setting out the actions that can be taken alongside with local authorities, to tackle poverty in Scotland.
Debbie Horne, Scotland Policy and Public Affairs Manager at Independent Age, said: “What is clear from the figures released today is that too many older people living on a low income are still missing out on Pension Credit in Scotland, and across the UK.
“There has been a disappointing lack of progress on Pension Credit take-up. We estimate that up to 70,000 older households could be missing out on Pension Credit between April 2022 and March 2023 worth a combined £140 million.
“Independent Age is urging the UK Government to maintain the Winter Fuel Payment in its current form until significant action can be taken to substantially increase Pension Credit take-up.
Previous strategies have not moved the dial, we can’t have more of the same. We need an innovative, evidence-based, long-term take-up strategy that maps out how older people living in, or on the edge of, poverty can access the financial support they are entitled to.
“It is too early to say what the impact of the recent increase in claims for Pension Credit will have on overall take-up rates. However, there is no room for complacency when an estimated 70,000 older households in Scotland are missing out on this much needed money and 150,000 live in poverty. In a socially just and compassionate society, we can and should do more.”