Hundreds of thousands of pensioners will not benefit from next month’s changes to Pension Credit means testing.
New analysis from Age Concern and Help the Aged pointed out that the income boost, which could be worth up to £8 per week, will not be received by elderly people who fail to claim the state support in the first place.
Currently, every £500 of pensioner cash savings above an initial threshold of £6,000 is counted as providing an income of £1 per week.
From November 2nd, this limit will increase to £10,000 – cutting assumed incomes and therefore increasing entitlement to the tax breaks.
However, Age Concern and Help the Aged pointed out that older people are still neglecting to claim around £5 billion in benefits each year.
Andrew Harrop, head of policy at Age Concern and Help the Aged, said: "The means-tested system is failing to help many of the older people who most need its help."
He added: "One in three entitled pensioners aren’t claiming pension credit. This is why it is so important to move to a system of paying older people their entitlements automatically, rather than relying on them to claim."
New analysis from Key Retirement Solutions has also shown that the Pension Credit rule change would also boost the equity release sector.
The report found that the rule change would open up "more pensioners to the prospect of equity release" without damaging their Pension Credit entitlement.
Posted by Alison Stephenson
