Challenging targets and better service needed to tackle pensioner poverty

9th March 2005

Citizens Advice today welcomed the Work and Pensions Select Committee report on Pension Credit.

Over one and a half million pensioners still fail to claim pension credit, which could lift weekly income for a single person to over £105.

The Work and Pensions Select Committee recommends a more challenging take-up target to ensure that the means-tested pension credit reaches many of the poorest pensioners it was set up to help.

The problem-solving charity told the Work and Pensions Select Committee Inquiry into the Introduction of Pension Credit in November that the government has not been ambitious enough in making sure all those who should be getting the state pension top-up actually claim it. It has pledged only to ensure that 78% of people eligible for pension credit are receiving it by 2008. In evidence to the Committee, Citizens Advice called on the Government to set itself a more challenging target of at least 90% take-up - and to devote more energy to ensuring this is achieved.

The Committee recommends that the new target, to be in place by October 2005, should be based on the amount of Pension Credit unclaimed, and that resources to increase take-up should focus on those missing out on the largest amounts.

The Report, and Citizens Advice evidence, also highlights key administration problems. These include:

Pension Credit Application Line operators have sent wrongly completed, or entirely blank forms sent to claimants;
people who are unable or unwilling to apply for pension credit over the phone are not always offered an alternative;
staff lack knowledge, particularly about how Pension Credit affects other benefits
inaccurate awards;
poor quality and unclear pension credit award letters.

One bureau reported that their client, who was described as "very numerate", was left unsure as to how much pension credit she would get after receiving an award letter which was confusing and full of jargon.

The Committee recognises these problems in its report, and recommends that the DWP does more to actively promote the availability of home visits, details of Local Service information points and arrangements for verifying documents locally. It also recommends that a freephone number for contacting Pension Centres be provided by 1 October 2005.

Citizens Advice senior policy officer John Wheatley said :

"We welcome the Committee's recommendation that take-up targets for the pension credit should be set at a more challenging level, and that the administration of Pension Credit needs to improve. Our evidence shows that application for Pension Credit can go badly wrong for some people. It is vital that the quality of service improves in order to ensure that everyone who is entitled feels they can make a claim."

Last updated: February 23, 2007