Pensioners 'failing to claim £4.2bn in benefits a year'

Pensioners 'failing to claim £4.2bn in benefits a year'

Do you know an elderly person who is worried about day-to-day living costs? A bit of extra cash would help, but perhaps they don't know what benefits they might be entitled to, or maybe they don't feel comfortable claiming "handouts".

If that sounds like someone you know, be prepared to step into action. The charity Age Concern said this week that friends and family members must do more to ensure older people receive unclaimed benefits. It has launched a year-long "Your Rights" campaign after figures revealed up to £4.2bn is left unclaimed by pensioners each year.

Actor and TV presenter Tony Robinson, who is supporting the cause, says: "We pay our taxes and national insurance all our lives. Let's make sure we all get the proper return on that investment."

Here we look at some of these benefits, who is eligible, how to get them and what they are worth.

Council tax benefit: With council tax increasing by an average of 4.2% this year, the bigger bills will be a huge worry for many pensioners - yet this is the least claimed of all benefits, says the charity. Up to £1.4bn is failing to reach older people, with almost 50% of those entitled to claim - up to 2.2 million pensioner households - missing out. On average, each is losing out on £580 a year.

If you are on a low income and paying council tax, you should claim this benefit, paid by local authorites as a rebate . It doesn't matter if you already.....continued below

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get a discount on your council tax, for example if you live alone.

To qualify, your savings should not exceed £16,000 , unless you receive the guarantee credit component of the pension credit (see later), in which case there is no savings limit. You can get a claim form from your local council or by logging on to dwp.gov.uk/lifeevent/benefits/council_ tax_benefit.asp

Pension credit: This was introduced in 2003 to boost the incomes of less well-off pensioners. Almost half of all pensioners are entitled to it, but many miss out by not claiming it. The pension credit is made up of two elements: the guarantee credit, which tops up your weekly income to a guaranteed minimum level set by the government, and the savings credit, which provides extra money each week as a reward for having modest savings.

The first part of the credit is designed to ensure everyone age 60 and over has an income of at least £119.05 a week if you are single, and £181.70 if you have a partner. The second part, for those 65 and over, can mean up to an additional £19.05 if you are single or £25.26 for couples.

To apply for pension credit, call 0800 99 1234 or download a claim form from thepensionservice.gov.uk

Housing benefit: This provides help towards rent and some service charges, but it is thought that up to 380,000 low-income pensioners fail to claim housing benefit worth £760m a year.

If you are on a low income and paying rent, you should claim housing benefit. To qualify, you must have responsibility for paying the rent, and if you have a partner, only one of you can get it. Again, there is a £16,000 savings limit, unless you get guarantee credit (see above), in which case there is no limit.

"The most housing benefit you can get is the same as your eligible rent. This may not be the same as your full rent," says the Department for Work and Pensions.