Pension Credit and Cost of Living Support Grant

Debate between Anne McLaughlin and Alex Burghart

Wednesday 26th October 2022 Westminster Hall

[Anne McLaughlin]

To clarify, I was blaming individual politicians and sections of the media for besmirching the character of people in receipt of social security payments. I am not suggesting that the UK Government are doing that. What was the increase in the number of people applying for pension credit after that campaign? What was done in the run-up to the crucial deadline of 19 August, and what will the Government do in the run-up to December, because that is an important incentive for people. It is not enough to have the £324, but it will act as an important incentive.

[Alex Burghart]

I thank the hon. Lady for her clarification. I have not heard any colleagues use that sort of language. I will answer her point in my speech.

We continue to work closely with a whole range of stakeholders, including Age UK, Independent Age and Citizens Advice, which have reach and expertise to identify other practical initiatives that will help encourage eligible pensioners to claim. On 15 June, the DWP had a second pension credit day of action with the media, in which we encouraged the media to reach out to pensioners, their family and friends. Thanks to that day of action, we recorded a 275% increase in claims in the week of 13 June this year, compared with the same week in 2021. The DWP has received unprecedented volumes of new claims for pension credit. Weekly claims tripled between December 2021 and August 2022, so we are seeing a genuine increase in traffic. Obviously, the quoted figures for uptake are about 70%, and the uptake for guarantee credit, which is the main safety net within pension credit, is 73%. Those figures are from 2019-20, before the current days of action and the campaign push, so we very much hope the next set of figures will be some way above that.

Prior to that campaign, the previous Minister for Pensions, my hon. Friend the Member for Hexham, wrote to all MPs to request their support. It has been heartening to hear all the Members who have spoken today give evidence of how they responded to that request. I know there is still work to do. The latest available estimates show that there are still substantial numbers of people who may be eligible for pension credit but are not claiming it. That is why we continue to encourage everyone to reach out to their own networks and use resources such as the pension credit calculator on gov.uk. By working together, cross-party, we can ensure that those eligible for pension credit receive the support they need.

It is particularly important that we encourage those eligible to make a claim because for those above state pension age, eligibility for the means-tested benefits cost of living payments is determined through pension credit entitlement. The £650 cost of living payment will help to ease the pressures that pensioners are currently facing. The payment was designed to target those on low incomes, which is why a household will automatically receive a cost of living payment if they are eligible to receive a pension credit payment during the qualifying period. We did this because we needed to get a big system up and running at high speed. We found it was the quickest and most effective way to deliver support to more than 8 million people on the lowest incomes.

[Anne McLaughlin]

I appreciate the Minister taking another intervention—I am doing so to help his throat and give him the chance to have a glass of water. If he is saying, “It was set up quickly because we had to help people as a matter of urgency,” that is good. However, we have now had time to think about it. I have written several times and been campaigning on this, but he has not yet answered the question: will he extend the deadline to 31 March, or will he consider extending it? Will he not say no today? Will he give people a little hope that they might get it? He is making the clear point that it is for households in absolute need. Well, they are still in absolute need—