Pensioners failing to claim benefits they are entitled to

Pensioners missing out on thousands of pounds of help.

More than a third of older people entitled to claim Pension Credit fail to do so.

That's according to Age UK, which this week is currently holding its first End Pensioner Poverty Week.

The problem with pensioner poverty

Pensioner poverty is a big problem in the UK. According to figures from the Department of Work and Pensions (DWP) 1.6 million pensioners are living on or below the poverty line, while a further 900,000 are living in severe poverty.

This is despite the fact that many older people are entitled to means-tested benefits designed to boost their income.

Each year around £5.5 billion of income-related benefits like Pension Credit, Housing Benefit and Council Tax Benefit goes unclaimed by pensioners.

The latest estimates of take-up from 2009/10 found that around a third (up to 1.6 million) of pensioners entitled to Pension Credit failed to claim it. On average this meant they were missing out on an extra £1,700 a year.

It’s estimated that around half (up to 2.23 million) of older people didn’t claim Council Tax Benefit they were entitled to. On average this would have reduced their annual bill by £728.

And up to 390,000 pensioners could have claimed Housing Benefit to reduce their rent by an average of £47 a week or £2,444 a year.

The result of missing out on financial help means many are struggling to afford basic essentials like fresh food, warm clothes and heating when they don't have to.

Keep track of your retirement savings every step of the way with lovemoney.com's new Plans service. Try Plans for 30 days

End Pensioner Poverty Week

Age UK has compiled a campaign report called How we can end pensioner poverty which includes recommendations for politicians and local decision makers.

These range from bringing all pensioners into a single tier pension, reducing the complexity of benefit forms, applying the ‘triple lock’ rule to all elements of the State Pension and introducing targets to reduce pensioner poverty.

The charity is asking for support from the public to get their message across.

Anyone can help by sending a copy of the How we can end pensioner poverty report to their local MP, who can raise the concern in Parliament.

You can find out how to contact your local MP on the Parliament website.

Keep track of your retirement savings every step of the way with lovemoney.com's new Plans service. Try Plans for 30 days

Getting help

You can use the Age UK online benefits calculator to see what benefits you might be missing out on. Even if you already claim some, you may be entitled to others, so it’s worth a check.

For more information about the benefits available for older people you can download a free guide or take a look at this website.

Alternatively for advice or help making a claim call Age UK free of charge on 0800 169 65 65 or visit you nearest Age UK to talk to a friendly adviser

Keep track of your retirement savings every step of the way with lovemoney.com's new Plans service. Try Plans for 30 days

More on investing and pensions:

Why the State Pension is unsustainable

Government: "Use your pension like a bank account"

British pensions lag behind Denmark, Australia and Finland

Couples over 40 failing to make financial plans for retirement