The unclaimed £575m that could help pensioners beat credit crunch

HUNDREDS of thousands of pensioners are struggling to cope during the credit crunch because they are not claiming the benefits and credits they are entitled to, experts warned last night.

New figures suggest 150,000 Scottish pensioners are not claiming pension credit, which could give them an extra 100 a month or more.

An estimated 180,000 are also failing to claim council tax benefit, which could help them offset their council tax bills, and about 125,000 are not claiming housing benefit, which, again, could give them much-needed extra income every week.

There are other benefits, such as the carers' allowance, which allows elderly carers to claim more in pension credit, that are not being properly applied for, mainly because pensioners do not know these benefits exist or because they are put off by the complexity of them.

In total, there is thought to be 4.6 billion in unclaimed benefits, credits and allowances at the Treasury – between 383 million and 575 million of which should be claimed by Scotland's one million or so pensioners.

Ministers are well aware of the huge boost that would be generated for the Scottish economy if that much money was injected into it in a single year, which is what would happen if pensioners claimed all the money they were due.

Westminster ministers have joined the Scottish Government and charities for the elderly in launching a major new campaign designed to increase the uptake of benefits and credits among pensioners.

David Manion, the chief executive of Age Concern Scotland, said the problem was widespread in normal times, but, with the credit crunch and rising prices, it had become acute.

He said: "It is very wrong that billions of pounds in benefits cash is failing to reach the poorest pensioners at a time when thousands are feeling forced to cut back on essentials such as food and fuel.

There can be no doubt that current measures to tackle the scourge of pensioner poverty are falling pitifully short of the mark."

In the course of last year, the Granton Information Centre in Edinburgh helped pensioners claim an extra 1.6 million in benefits.

Roddy Samson, a senior education and training officer there, said there were many reasons why pensioners failed to claim the benefits they were due.

"Part of it is form-filling, part of it is bureaucracy – benefits are dealt with by different departments and agencies, some by the Department of Work and Pensions, some by local authorities, it can be really confusing.

"Also, the legislation changes regularly. This means that elderly people who may have had a benefit check and who are told they are not eligible will be eligible six months later, and they don't know it. There is also a lot of reticence about means-testing – a lot of older people don't want charity or handouts."

However, Mr Samson said the beneficial effects were clear.

"Sometimes, we have managed to get people an extra 100 a week," he said. "What that means is that they can have a better diet, they can heat their houses properly. It can have a really positive effect on their self-esteem – they can buy presents for grandchildren and feel they are not a financial burden to others."

Where people are missing out

THE main areas of unclaimed benefits are:

• Pension credit

This was introduced to ensure that no pensioner aged 60 or over need live on less than 124.05 a week (189.35 for couples). It allows pensioners to top up their pensions, even if they have savings. The amount they receive is on a sliding scale, depending on how much they have in savings.

Department of Work and Pensions statistics suggest 8 per cent of entitled non-recipients are in Scotland.

• Council tax benefit

Council tax benefit is available for people with savings and income of less than 16,000. The amount of council tax benefit each person can get depends on their level of income and savings.

It is estimated that between 1.7 million and 2.1 million UK pensioners are missing out on council tax benefit.

• Housing benefit

Sometimes called rent allowance or rent rebate, housing benefit is paid by local councils and is paid to people on low incomes who pay rent. This works on a sliding scale, with the most being paid to those who have the least put away.

• Carer's allowance

Carer's allowance is a taxable benefit to help people who look after someone who is disabled. Carers do not have to be related to, or live with, the person that they care for to claim it.

In October 2002, the government removed the rule that prevented carers aged 65 or over from claiming carer's allowance. There is evidence many carers do not know about the allowance and do not claim.

Advice, information and help for senior citizens

WHERE to get help:

• A range of free fact sheets and other information is available from the Scottish Helpline for Older People on 0845 125 9732. It is open from 10am-4pm Monday to Friday.

• Age Concern Scotland –

0845 833 0200

[email protected]

www.ageconcernscotland.org.uk

• Help the Aged Seniorline free phone service –

0808 800 6565

020 7278 1114 (not a free call)

• Department for Work and Pensions –

http://www.direct.gov.uk/en/Over50s/Benefits/BenefitsInRetirement/index.htm

• Citizens Advice Bureaux –

http://www.citizensadvice.org.uk

• Counsel + Care, charity giving help and advice to older people – http://www.counselandcare.org.uk

'We didn't know we could receive more money'

WILLIE and Margaret Sutherland have lived in a sheltered housing complex in Abbeyhill, Edinburgh, for 23 years.

The couple, both in their 80s, did not receive housing benefits and paid 375 a month in rent.

In January this year, they received advice from a benefits service at Trust, Hanover and Bield Housing Association. The couple had been receiving about 1,000 a month from two basic state pensions and Mr Sutherland's work pension. They also received an additional 180 a month in disability allowance as Mr Sutherland lost a leg in a car accident 18 years ago. After taking advice, the Sutherlands realised they were entitled to an extra 1,000 a month, as well as housing benefits covering their rent and a backdated council tax lump sum. In total for the year, the couple will be almost 20,000 better off.

Mrs Sutherland, 83, said: "We don't know what to do with it all. Now they keep giving us benefits. We keep getting letters saying that we are entitled to more and more money.

"All elderly people out there should try and claim benefits because they never know, they might be able get some more money.

"We didn't know that we could receive more money, but other people may also be successful so they should really try."