Nearly eight-in-ten eligible pensioner homeowners are failing to claim state benefits worth an average of £1,807 per year, a new report has claimed.
As the cost of living crisis continues, pensioners are urged to claim all the benefits they are entitled to.
Around 79 per cent of pensioner homeowners are missing out on benefits they could claim. Of those who are claiming, nine per cent are receiving less than their full entitlement, missing out on an additional £2,915 annually.
Stephen Lowe, group communications director at Just Group, said: “Despite the focus on benefits as a result of the Government’s decision to axe Winter Fuel Payments to millions, our survey once again shows the scandalous scale of the underclaiming problem.”
Around 760,000 pensioner families entitled to Pension Credit did not claim, missing out on approximately £1.5bn collectively
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Around 58 per cent of those missing out on income were entitled to benefits worth at least £1,000 a year, Just Group’s 15th annual State Benefits insight report has shown.
Pension Credit figures are particularly concerning, with 90 per cent of eligible pensioner homeowners failing to claim this crucial benefit.
Around 760,000 pensioner families entitled to Pension Credit did not claim, missing out on approximately £1.5billion collectively.
This benefit acts as a gateway to other support, including Winter Fuel Payment, making its low take-up rate especially problematic. The highest amount of unclaimed benefits discovered was £145.37 per week for a couple in their mid-70s living in Suffolk.
The couple, who weren’t claiming any benefits, were eligible for £95.26 in Guaranteed Pension Credit, £19.04 in Savings Pension Credit and £31.07 in Council Tax Reduction.
This amounted to £7,560 in extra annual income they could have received.
Guarantee Pension Credit, the main benefit for low-income pensioners, was claimed by only one-in-10 eligible homeowners, with unclaimed amounts averaging £1,391 per year.
Just 25 per cent of those eligible for Savings Pension Credit were claiming it, missing out on £933 annually per household.
Council Tax Reduction showed similarly low rates, with only a quarter of eligible households claiming it. This means many were losing an average of £1,067 each year.
Universal Credit had a 50 per cent take-up rate among those below State Pension age, with non-claimants missing £2,626 on average.
Government figures suggest overall take-up rates for benefits are higher than those found among homeowners specifically.
Official estimates for 2022/23 indicate that 72 per cent of those eligible claimed Guarantee Pension Credit, while Savings Pension Credit had a 42 per cent take-up rate.
Around 760,000 pensioner families entitled to Pension Credit did not claim, missing out on approximately £1.5billion collectively.
Lowe added: “Our take-up figures for homeowners are a little lower than the overall rates published by the Government, suggesting some people may think owning a home rules them out of receiving State support.”
The findings came from specialist equity release advisers at HUB Financial Solutions, who conduct thorough State Benefit entitlement checks.
Lowe explained their service “ensures clients receive any income that could remove or reduce the need for them to release any funds from their property”.
Free benefit calculators are available on the Government website, while local councils provide information about Council Tax help. Additional support can be accessed through MoneyHelper, Citizens Advice, and Age UK.
The Government-backed Pension Wise service also offers free, impartial guidance to retirees.
