Cash-strapped pensioner homeowners are missing out on thousands of pounds of extra income by failing to claim their full entitlement to key means-tested State Benefits.
Benefits analysis and research findings
Just Group’s 15th annual State Benefits insight report found that eight in 10 (79%) pensioner homeowners were failing to claim any of the benefits they were eligible to receive, missing out on an average of £1,807 a year extra income.
Nearly one in 10 (9%) who were claiming were receiving too little, on average missing out on an additional £2,915 a year income.
“Despite the focus on benefit as a result of the government’s decision to axe Winter Fuel Payments to millions, our survey once again shows the scandalous scale of the under-claiming problem,” said Stephen Lowe, group communications director at retirement specialist Just Group.
“Figures for Pension Credit – the main means-tested benefit for older people – are particularly worrying because it is a gateway to other benefits such as Winter Fuel Payment. Only about one in 10 pensioners are eligible but we found 90% of them were missing out.”
The research from Just Group is based on in-depth fact-finding interviews with clients seeking advice on equity release during 2024. It shows 33% were entitled to one of the key benefits. Of those eligible, nearly eight in 10 (79%) were not claiming any benefit.
Full list of benefits being missed out on
In total, more than half (58%) of those missing out on income were entitled to benefits worth at least £1,000 a year.
Guarantee Pension Credit was being claimed by only one in 10 of those pensioner homeowners who were eligible. Households failing to claim were losing an average £1,391 extra income per year.
Savings Pension Credit – only 8% were eligible for the ‘top up’ benefit for low-income pensioners who have modest savings. Only a quarter (25%) of those eligible were claiming, with the average annual loss £933 per household.
Council Tax Reduction should be claimed by nearly three in 10 (29%) of households, but only a quarter of those were actually claiming with the average annual loss £1,067.
Universal Credit – about a third of the lifetime mortgage enquiries who received advice were below State Pension age, potentially eligible for Universal Credit. Although actual eligibility rates were low, the take-up rate was just 50%, with those households not claiming missing out on £2,626 on average.
