Access to Pension Credit

Debate between Chris Elmore and Alex Sobel

Wednesday 24th July 2019 Westminster Hall

[Chris Elmore]

I am grateful to the hon. Lady for that intervention. As I will set out later in my speech, the parliamentary service here has been able to have some interaction with constituents from across the UK, and I have some examples that will almost confirm her view that the Department for Work and Pensions is being deliberately unhelpful when it comes to allowing pensioners to claim pension credit. I will refer to those examples later.

The Government’s flagship policy to lift pensioners out of poverty—pension credit—is failing, and it has been for some time. Pension credit is not working for up to 1.3 million pensioner households that are eligible for this vital support, which could be the catalyst they need to lift them out of poverty, but they do not receive it. In my constituency, I find it completely staggering that there is £5.1 million of pension credit going unclaimed each year, and I know that there are many, many constituencies across the UK where the situation is even bleaker.

By the time the new TV licence rules come into force in 2020, pensioners across the UK will have endured 10 long years of Tory austerity—10 long years of austerity that none of them caused; 10 long years of austerity that many of these pensioners did not vote for. Indeed, 10 long years of austerity have had a devastating impact on the living standards and quality of life of hundreds of thousands of pensioners across the United Kingdom.

In 2003, pension credit was introduced under the new Labour Government. It was created to ensure that all older people received a minimum amount of income and has played a major role in previous reductions in poverty. Indeed, the last Labour Government lifted 2 million pensioners out of poverty as a result of policies such as pension credit.

What have we seen since? Over 400,000 more pensioners have been plunged into poverty, and two in five of the pensioner households that are entitled to pension credit currently do not claim it. That shows that it is not that the policy itself is not working; instead, it is that people who might need this money are not accessing it. The Government have to change that.

Parliament’s brilliant digital engagement team asked people on social media and on the MoneySavingExpert.com forum over the weekend about their experiences with pension credit. It was clear from that research that although many respondents were aware of pension credit, there was much more confusion about what the benefit actually was, who is eligible to it and how it can be accessed. Several of the respondents criticised the way that the DWP promotes pension credit to those who are eligible for it. For example, Joanne Stannard said that

“there are some over-75s who don’t even own a computer…make their lives easier”.

Susan Brady said:

“I worked for the DWP for over 30 years in operational delivery, so I am well aware how unfair our welfare system is. We seem to despise our older people in the UK. It’s wrong, totally wrong.”

I could go on, but what was clear from the responses is that the system is not fit for purpose. People do not know whether they are eligible for pension credit and many are struggling to get by, despite working hard throughout their lives.

I thank everyone who responded to the questions posted online or shared their views about them, and I pay tribute to the digital engagement team for again helping us to have as informed a debate as possible.

[Alex Sobel (Leeds North West) (Lab/Co-op)]

My hon. Friend is making a great speech, with lots of very salient points. Recently, when it was announced that over-75s would get their TV licence free only if they are on pension credit, I wrote to all the over-75s in my constituency, so I will just add a response that I received to those that he has cited. One constituent said that he not only received his pension credit but now also gets

“council tax credit, help with…glasses and dental, and a premium on…carer’s allowance.”

He was forced into poverty because of a lack of information that only I, as his representative, could correct. Is that not something that the Government should do?

[Chris Elmore]

I completely agree with my hon. Friend. The point that I will make later in my speech is that there seems to be this assumption that increasing publicity does not necessarily work or that trying to get cross-benefits, for example around housing benefit, would not solve the problem. However, his intervention shows that where Members of Parliament are proactive—arguably, the Government could be proactive instead—they can gain more support for their constituents. I pay tribute to him for doing that already; perhaps the Government could follow his lead.

Over the last few weeks, I have been working closely with the older people’s charity Independent Age, which has put forward some sensible recommendations that could help us to improve this situation. Indeed, its “Credit Where It’s Due” campaign has already made waves across the country, and I am proud to support it in its entirety.

Working with sector stakeholders and with all levels of Government, it is essential that the Government act to ensure that everyone who is entitled to pension credit receives it. To achieve this, I impress upon the Minister the need for him to make three clear commitments today. The first is to ensure that at least 75% of eligible people receive pension credit by the end of 2020. The second is to ensure that that figure is at least 95% by the end of 2022. The third is to ensure that it is 100% by 2025.

Independent Age estimates that if measures are put in place to achieve a 75% take-up target by 2020, half a million pensioners could be lifted out of poverty by putting an additional £1.25 billion into the pockets of our poorest pensioners. To reach those targets, the Government must put in place a comprehensive action plan that is ambitious about the full range of improvements that can be—indeed, need to be—made. Simply continuing previous approaches, such as focusing merely on new awareness-raising campaigns, will not allow us to make the progress on this issue that is desperately needed.

Of course, the voluntary sector plays a vital role in supporting older people to access pension credit, but such support cannot be relied upon to improve uptake across the country if used in isolation.