A report by Just Group has highlighted a troubling trend among the UK’s pensioner homeowners: a staggering 79% are not claiming any of the means-tested benefits they’re entitled to, thus missing out on an average of £1,807 annually. Moreover, close to one in 10 pensioners (9%) who do make claims receive less than they should, foregoing an additional average of £2,915 each year.
Stephen Lowe, group communications director at Just Group, commented on the severity of the issue, stating: “Despite the focus on benefit as a result of the UK Government’s decision to axe Winter Fuel Payments to millions, our survey once again shows the scandalous scale of the under-claiming problem.”
He further stressed the urgency, adding: “Of the one-third of pensioner homeowners eligible for benefits, the proportion failing to claim remains very high while the amounts unclaimed are larger than for more than a decade. This is real cash that should be helping low-income pensioners deal with the cost-of-living crisis.
“Figures for Pension Credit – the main means-tested benefit for older people – are particularly worrying because it is a gateway to other benefits such as Winter Fuel Payment. Only about one in 10 pensioners are eligible but we found 90 per cent of them were missing out.”
The Daily Record has highlighted a study revealing that a staggering 33% of clients seeking equity release advice in 2024 were entitled to key state benefits, yet nearly eight out of 10 (79%) who were eligible weren’t claiming any benefit, and one in 10 (9%) were getting less than their full entitlement.
Stephen from HUB Financial Solutions, which participated in the study, underscored the value of these assessments: “The survey is based on findings from specialist equity release advisers from our sister company HUB Financial Solutions who thoroughly check State Benefit entitlement. This ensures clients receive any income that could remove or reduce the need for them to release any funds from their property.”
A case in point involves a Suffolk couple in their mid-70s who, through this service, realised they were entitled to an additional £145.37 a week, amounting to an extra annual income of £7,560—despite having previously claimed nothing. The breakdown of this unclaimed sum includes £95.26 in Guaranteed Pension Credit, £19.04 in Savings Pension Credit, and £31.07 in Council Tax Reduction each week.
A shocking 58% of individuals are failing to claim benefits that could amount to at least £1,000 annually, according to recent data. The figures reveal that Guarantee Pension Credit, designed primarily to aid low-income pensioners, is only being claimed by a mere one in 10 eligible pensioner homeowners.
This results in an average annual loss of £1,391 in potential extra income. Alarmingly, only 8 percent of those eligible for Savings Pension Credit, a ‘top-up’ for low-income individuals with modest savings, are claiming it.
This means three-quarters of eligible households are missing out on an average of £933 each year. Council Tax Reduction is another underclaimed benefit, potentially applicable to nearly 30% (29%) of households.
However, only a quarter actually apply, missing out on an average of £1,067 annually. Regarding Universal Credit, about a third of lifetime mortgage enquirers below the State Pension age could be eligible.
Yet, with a take-up rate of just 50%, households are losing an average of £2,626 per year.
The latest figures from the UK Government for 2022/23 show a worrying trend in support claim discrepancies: Guarantee Pension Credit has only been claimed by 72 percent of those eligible, while the Savings Pension Credit uptake is even lower at just 42 percent. This results in around 760,000 pensioner families missing out on nearly £1.5 billion, equating to about £1,900 per household on average every year.
Stephen remarked on a notable gap, saying: “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.”
Research from HUB Financial Solutions, part of Just Group, shows a startling 38% of homeowners over the age of 65 have never checked if they’re entitled to state benefits, while 19% don’t remember or don’t know when they last verified their eligibility.
Stephen underscored the importance of awareness and action: “These findings once again raise questions about the support and guidance available to people heading into retirement and beyond. Pension Credit is not automatically paid but must be claimed – we would urge those who don’t know about it or assume they are not eligible to check if they are entitled. It could unlock thousands of pounds of income each year.”
