High Peak Liberal Democrats
DWP reveals billions in benefits unclaimed each yearThe Department for Work and Pensions (DWP) has released figures detailing billions of pounds worth of benefits that went unclaimed in the 2009-10 financial year.
The figures are surprising and reveal that many individuals including pensioner and the unemployed are missing out on benefits worth thousands of pounds to many potential claimants.
Michelle Mitchell, Charity Director General of Age UK said: "The latest figures show that there is a staggering amount of £5.5 billion worth of benefits going unclaimed by older people each year. This is the same level as last year and so it is very disappointing that there has been no progress in older people not claiming the benefits they are owed. There are still 1.8 million people in later life living in poverty and claiming pension credit can make a huge difference to someone's income and quality of life."
The report entitled 'The Income Related Benefits: Estimates of Take-up' covers the whole of the UK for 2009-10 and estimates the number of people who are entitled too but not claiming income related benefits including income support and employment and support allowance, pension credits, housing benefit, council tax benefits and jobseeker's allowance.
The details for each type of benefit are:-
Income Support and Employment and Support Allowance
Take-up in 2009-10 was between 77 - 89 per cent, the number of people entitled but not claiming was between 260,000 - 620,000 and the value of benefits unclaimed was between £0.75 billion - £2.04 billion.
Pension credit
Take-up was between 62 and 68 per cent, the number of people entitled but not claiming was between 1.21 million and 1.58 million and the value of benefits unclaimed was between £1.94 billion and 2.80 billion.
Housing Benefit (including Local Housing Allowance)
Take-up was between 78 - 84 per cent, the number of people entitled but not claiming was between 0.75 million and 1.14 million and the value of benefits unclaimed was between £1.85 billion and £3.10 billion.
Take-up was between 62 and 69 per cent, the number of people entitled but not claiming was between 2.34 million and 3.2 million people and the value of benefits unclaimed was between £1.7 billion and £2.42 billion.
Take-up was between 60 and 67 per cent, the number of people entitled but not claiming was between 440,000 - 610,000 people and the value of benefits unclaimed was between £1.28 billion and £1.95 billion.
Michelle Mitchell said: "The Government needs to start an awareness programme and move more towards a system where the DWP pay entitlements rather than an individual having to work their way through the benefits maze.
"We would urge any older person who is struggling or worried about money to contact to call our free advice line on 0800 169 6565 or speak to their local Age UK"
Pensions minister Liberal Democrat Steve Webb said: "The goal is for people to retire on decent income, which is why we are bringing in automatic enrolment and have consulted on proposals to reform the system to provide a simple state pension set above the level of the basic means test".