A significant proportion of pensioner homeowners who qualify for state support are leaving substantial sums unclaimed, according to new research from retirement specialists Just Group.
The report reveals that nearly three-quarters of those entitled to Government assistance are not receiving the money available to them, with the typical annual loss amounting to £1,339.
Just Group’s analysis found that more than four in ten pensioner homeowners meet the criteria for at least one form of state benefit from the Department for Work and Pensions (DWP).
However, analysts are sounding the alarm that 74 per cent of this eligible group are failing to access funds they could rightfully receive, despite many living on limited incomes.
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David Cooper, the director at Just Group, described the cost of living situation as “an epidemic” affecting older homeowners across the country.
“Our survey once again reveals what appears to be an epidemic of pensioner homeowners missing out on income they are entitled to claim,” he explained.
Mr Cooper emphasised that those failing to claim are predominantly from low-income households already grappling with rising living costs.
“These are low-income pensioner households likely to be struggling with the cost-of-living crisis,” he added.
Britons continues to grapple with the cost of living | GETTY
A key factor behind the widespread failure to claim appears to be a lack of awareness among retirees, with many homeowners simply unaware that such support options exist.
The cost of living support available through the DWP encompasses guaranteed Pension Credit, savings Pension Credit, reductions to council tax bills, and Universal Credit.
Council tax reductions present a particularly stark example of the claiming gap, with just 24 per cent of eligible pensioners accessing this benefit despite average new claims exceeding £1,000 per year.
Guaranteed pension credit proves especially significant as it serves as the primary means-tested benefit for older people and opens doors to additional support such as winter fuel payments.
“We found more than two-thirds who were eligible were missing out,” Mr Cooper noted regarding Pension Credit uptake among eligible state pensioners living in the UK.
Pension Credit is the primary means-tested payment for those of state pension age, who are considered to be on a low income, with the support also being considered a gateway to additional benefits, including Winter Fuel Payments.
Data from the DWP has previously indicated that close to a million pensioners are not receiving Pension Credit payments they qualify for.
The research reveals the extent of missed entitlements, with 62 per cent of those failing to claim missing out on one key benefit, while 12 per cent were not receiving two benefits and 5 per cent were overlooking three.
Benefit fraud graphic | GETTY
Even among those successfully claiming, nearly one in seven were receiving less than their full entitlement, losing an average of £1,162 annually.
Last year, Independent Age’s chief executive Joanna Elson CBE outlined the difficulties retirees face when attempting to access benefit support from the DWP.
She shared: “The strategy should include plans to simplify and streamline the application process, people shouldn’t have to spend hours answering hundreds of questions.
“The DWP should also investigate the feasibility of automating or semi-automating certain entitlements, as this could help get money into the pockets of those who need it.”