21 April 2004 - Record month for Pension Credit – 2.4 million households now benefiting
Figures released today show a record month for Pension Credit, with 138,000 new households (176,000 individuals) added in March alone.
This is the highest number of households added in a single month since Pension Credit was introduced in October 2003. In total, there are now 2.4 million households (2.9 million individuals) receiving Pension Credit across the country.
Welcoming the record figures, Secretary of State, Andrew Smith, said:
“I am delighted at the number of people who have started to receive Pension Credit this month. In just six months these figures confirm that 2.4 million households are now getting what they are entitled to through Pension Credit.
“To tackle pensioner poverty we have to get the money to those who need it most and ensure that people pick up what is rightfully theirs. We are succeeding in doing this. Week on week, pensioners are seeing a real difference in their incomes, making a crucial difference to their lives. Figures out just last month show pensioner poverty down again – with absolute low income cut by two thirds, meaning 1.8 million pensioners lifted out of acute hardship since 1997.”
The figures showed that as of 31st March the average weekly Pension Credit award was £41.34 and since October, over two million individuals are now receiving more money than under the old system. As of this month, pensioners are getting even more – Pension Credit has increased by over £3 to £105.45 a week for a single person and by over £5 to £160.95 a week for couples.
Pensions Minister, Malcolm Wicks, added:
“Pension Credit rewards saving and gets extra money to pensioners who have missed out in the past. This month’s figures show that 691,000 new households are now getting on average £21 a week that they didn’t have before.
“We will continue to work closely with our partners to encourage all those who have not yet applied to do so. Following the budget last month, backdating will now be extended to twelve months so that people don’t miss out on the money that is theirs.”
Pension Credit applications can be made via the freephone Pension Credit application line on 0800 99 1234. Calls are free except from some mobiles. There is a textphone service for those who have hearing difficulties on 0800 169 0133. A Pension Credit calculator is also available on The Pension Service website where people can get an estimate of any possible Pension Credit award at http://www.thepensionservice.gov.uk/pensioncredit/calculator/home.asp
Notes for editors
- Pension Credit replaced the Minimum Income Guarantee (MIG) and has been payable since October 6th 2003.
- The Pension Credit application line is open 8am to 8pm Monday to Friday and 9am to 1pm on Saturday.
- Pension Credit guarantees everyone aged 60 and over an income of at least £105.45 for single people and £160.95 for couples.
- For the first time, Pension Credit will reward people aged 65 and over for some of the savings and income they have put away for their retirement.
- Pensioner households who were not receiving MIG as at April 2003 are being contacted between April 2003 and mid 2004 through a personalised letter inviting the customer to make an application.
- There are special arrangements in place to allow payments to be backdated for up to 12 months or from the date of entitlement if that is later.
- From age 65, most pensioners will only have to report changes in savings and/ or income once every five years, effectively abolishing the old weekly means test.
- Extra amounts will be added for those who have relevant housing costs, severe disabilities or caring responsibilities
- For further press enquiries please contact Stewart Todd.
Press office: 020 7238 0643
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Website: www.dwp.gov.uk