Pensioner homeowners are failing to claim thousands of pounds in means-tested benefits, according to a report by Just Group. The retirement specialists found that 79% of pensioner homeowners were not claiming any of the benefits they were eligible for, missing out on an average of £1,807 a year.
Furthermore, nearly one in 10 (9%) pensioners who were claiming were receiving too little, missing out on an additional £2,915 a year. Stephen Lowe, group communications director at Just Group, said: “Despite the focus on benefit as a result of the UK Government’s decision to axe Winter Fuel Payments to millions, our survey once again shows the scandalous scale of the under-claiming problem.”
He added: “Of the one-third of pensioner homeowners eligible for benefits, the proportion failing to claim remains very high while the amounts unclaimed are larger than for more than a decade. This is real cash that should be helping low-income pensioners deal with the cost-of-living crisis.”
“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 per cent of them were missing out.”
The findings of a study based on comprehensive interviews with clients seeking equity release advice in 2024 reveals that a significant 33% were entitled to key state benefits. Astonishingly, nearly eight out of 10 (79%) who were eligible weren’t claiming any benefit, and one in 10 (9%) were getting less than their full entitlement, reports the Daily Record.
Stephen, from the participating sister company HUB Financial Solutions, stressed the importance of these evaluations: “The survey is based on findings from specialist equity release advisers from our sister company HUB Financial Solutions who thoroughly check State Benefit entitlement. This ensures clients receive any income that could remove or reduce the need for them to release any funds from their property.”
One Suffolk couple, in their mid-70s, discovered through this service that they could claim an additional £145.37 a week, tallying up to an extra yearly income of £7,560—despite having previously claimed nothing. This unclaimed figure breaks down to £95.26 in Guaranteed Pension Credit, £19.04 in Savings Pension Credit, and £31.07 in Council Tax Reduction each week.
Key unclaimed benefits
Overall, over half (58%) of those missing out could claim benefits totalling at least £1,000 annually. The data highlighted that Guarantee Pension Credit, aimed primarily at assisting low-income pensioners, was only being claimed by one in 10 of the eligible pensioner homeowners, leading to an average loss of £1,391 per year in potential additional income.
Pensioners are missing out on crucial financial assistance, with startlingly low claim rates for vital benefits revealed. Only 8 percent are eligible for Savings Pension Credit intended as a ‘top-up’ for those on low incomes with modest savings, yet just one-fourth of eligible households claim it, missing out on an average of £933 annually per household.
There’s also a gap in the uptake of Council Tax Reduction, potentially affecting nearly 30% (29%) of households; however only a quarter actually make claims, foregoing an average of £1,067 each year. With regards to Universal Credit, around a third of lifetime mortgage enquirers under the State Pension age could be eligible, but with a take-up rate of merely 50%, households are losing an average of £2,626.
According to the UK Government’s latest estimates for 2022/23, Guarantee Pension Credit had a take-up rate of 72 percent while Savings Pension Credit was claimed by just 42 percent of those eligible. This equates to around 760,000 pensioner families who are entitled to Pension Credit not claiming approximately £1.5 billion in total, which works out at about £1,900 yearly for each household on average.
Stephen highlighted a discrepancy between homeowners and others: “Our take-up figures for homeowners are a little lower than the overall rates published by the government, suggesting some people may think owning a home rules them out of receiving State support.”
Research conducted by HUB Financial Solutions, a sister company of Just Group, revealed that over 38% of homeowners aged 65 and above have never checked their eligibility for state benefits. Moreover, 19% are uncertain or cannot recall when they last checked their entitlement.
Stephen emphasized: “These findings once again raise questions about the support and guidance available to people heading into retirement and beyond. Pension Credit is not automatically paid but must be claimed – we would urge those who don’t know about it or assume they are not eligible to check if they are entitled. It could unlock thousands of pounds of income each year.”