Pension Credit 'should be automatic'

Pension Credits are not being taken up by enough people and should be made automatic, according to Age Concern.

Almost a third of those entitled to Pension Credit are not claiming five years into its introduction, the charity said.

Yet over half (52 per cent) of pensioners are buying less or poorer quality food, and 49 per cent are planning on cutting back their heating this winter, as they are struggling to pay all their bills.

Age Concern is urging the government to introduce a new system of automatic payments as soon as possible - an idea supported by seven in ten older people - and reform the benefits system to help the poorest pensioners cope with their escalating household bills.

Gordon Lishman, director general of Age Concern, said: "It is deeply 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.

"Pension Credit has the potential to lift hundreds of thousands of pensioners out of poverty, but will remain more flagging than flagship without urgent action to reform the faltering benefits system.

"Introducing a system of automatic benefits it is the only effective way to reach all those who need help through these difficult financial times."

Up to £2.8 billion in Pension Credit still remains unclaimed by 1.8 million pensioners.

If the benefit was paid automatically, those missing out would be on average £1,477 a year better off, the charity said.