Means testing hits pension credits

MEANS testing is putting people off applying for the Pension Credit, according to a new report.

It reveals that more than 70% of people saw testing as a deterrent to claiming, while nine out of ten pensioners believe the Government should provide a higher basic state pension, rather than forcing people to apply for a top-up.

The Pension Credit is aimed at people retiring on a low income, and guarantees to provide a single person aged 60 or over an income of at least £102.10 a week - or £155.80 for a couple.

People aged over 65 with modest savings may also be eligible for an extra £14.79 a week if they are single, or £19.20 for a couple.

Yet disturbingly, figures reveal one third of those eligible for the Pension Credit fail to claim – either because they don‘t realise they are entitled to, don‘t know how to claim, or because they feel there is a stigma attached to claiming.

Neil Churchill of Age Concern said: 'This report calls into question the Government‘s long-term pensions strategy. The Pension Credit has targeted money at the poorest with some success but does not provide a lasting solution to pensioner poverty.

He added: 'We will help people to receive the Pension credit but in the longer-term we want to see the Government increase the Basic State Pension and turn its back on means-testing in favour of a fairer system for all.'

But the report also highlights the benefit of the Pension Credit to those who do claim it. 85% of those surveyed by Age Concern said they would definitely recommend the benefit to others, with more than 50% saying it had made a 'noticeable difference' to their lives.

The credit is worth around £400 a year on average, which can make a big difference for those struggling on a tight budget.

To claim the Pension Credit people should call 0800 99 1234, where an adviser will fill in the form for them over the phone.

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Create Account you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy policy .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in