The petition of residents of the constituency of Glasgow North East,
Declares that there is currently a low uptake of Pension Credit which has knock-on effects on receiving the Cost of Living Payment; notes that to get the first cost of living payment of £326, you must have been entitled to a payment, or later found to be entitled to a payment of a passport benefit, one of which is Pension Credit for any day in the period April 26 to May 25 2022; and further that if the eligibility period were to be extended, it could encourage people to apply for Pension Credit and receive the Cost of Living Payment.
The petitioners therefore request that the House of Commons urge the Government to extend the eligibility period for recipients of Pension Credit to receive the Cost of Living Payment to the end of the fiscal year.
And the petitioners remain, etc.—[Presented by Anne McLaughlin, Official Report, 5 July 2022; Vol. 717, c. 845.]
[P002743]
Observations from The Secretary of State for Work and Pensions (Dr Thérèse Coffey):
In respect of pension credit, the latest estimates show that take-up is at its highest level since 2010, with 66% of eligible pensioners claiming pension credit in the financial year ending 2020. Take-up of guarantee credit, the income top-up element of pension credit, was higher, 73% of those eligible claimed it; and take-up of savings credit, which is only available to those who reached state pension age before April 2016 was 43%.
We have already undertaken a range of actions to raise awareness of pension credit and increase take-up, focusing our efforts on a comprehensive take-up campaign, launched on 3 April. We have been promoting pension credit in a variety of ways, including print advertising and promotion in the national press, across social media, via internet search engines and on screens in post offices and GP surgeries across Great Britain.
All MPs have also been urged to support the campaign at a constituency level as MPs are well placed to promote pension credit locally. DWP’s digital toolkit has been updated with information and resources, as well as leaflets and posters which advice organisations, charities and other stakeholders working across local communities can use to help promote pension credit. Most recently, on 15 June DWP held another pension credit day of action with broadcasters, regional and national newspapers and other partners encouraged to reach out to pensioners, as well their family and friends, through their channels.
The campaign has been highly effective, with over 10,000 claims received across Great Britain during the week of the pension credit day of action alone. This is an increase of 275% compared to the same week in 2021. But our drive to increase take-up continues, with the next phase of social media and paid website advertising and further advertising in national newspapers, radio and on buses and digital street displays starting soon.
The Government understands the pressures people, including pensioners, are facing with the cost of living. That is why we are providing a further £15 billion in targeted support, bringing the total Government cost of living support to over £37 billion. This comprehensive package includes a £650 cost of living payment paid in two lump sums to everyone on an eligible means-tested benefit, including pension credit, with respect to the qualifying dates. Rebates of £400 will be given to those who pay electricity bills, and £150 made to those in council tax bands A to D in England. An additional £300 targeted support will be made to pensioners to help tackle the rise in fuel costs, as well as £150 to disabled people in receipt of an eligible disability benefit on the qualifying day. The targeted support has been directed at groups who have been identified as particularly likely to need extra support to deal with the impacts of higher inflation and to the lowest-income individuals in the UK to support with higher inflation.
The eligibility period for the cost of living payment was designed to target support to those on eligible means-tested benefits. Setting the eligibility period as we have was the quickest way to deliver support to those on the lowest incomes and will allow us to make timely payments to over 8 million people on low incomes.
For pension credit claimants to receive the first cost of living payment, they would need to have been entitled to a pension credit payment for any day in the period of 26 April 2022 to 25 May 2022. Claims for pension credit can be backdated for a maximum of three months, provided the entitlement conditions are met throughout the backdating period.
This means that if someone makes a claim, and payment of their pension credit can be backdated to fall within the first cost of living payment eligibility period, then they will qualify for the first cost of living payment of £326. To guarantee that 25 May will be included in the first pension credit payment for pensioners wishing to backdate a new claim, we advise that claims should be made as soon as possible and no later than 18 August and so long as they remain entitled to pension credit, they will qualify for the second payment of £324 as well. We would urge anybody who thinks that they could be eligible to make a claim as soon as possible. We will provide further guidance about this second payment and the eligibility period in due course.
We are not changing the eligibility dates for the first tranche of the cost of living payment for any of the means-tested benefits.