8 November 2004 - Over 300,000 of the poorest pensioners gaining for first time with Pension Credit
Over 300,000 poorer pensioners are better off today than ever before thanks to Pension Credit.
New figures show that since the introduction of Pension Credit in October last year, an additional 332,000 individuals (265,000 pensioner households) are for the first time getting a guaranteed income of at least £105 each week.
Total spending on the very poorest households, mostly those whose income is less than the basic state pension, has already outstripped the projections set in the last spending review – this means that £40 million more than was thought is going straight to the pockets of the poorest pensioners.
Many pensioners are also automatically entitled to extra help with council tax bills and housing costs. This is help which previously they had missed out on.
Pensions Minister Malcolm Wicks said:
“Most of the poorest pensioners are now getting Pension Credit and the payments - on average £40 a week - are making a real difference to their lives. I am proud of that and am committed to ensuring all those who are entitled apply. People who previously slipped through the net are now getting this invaluable help.
“Our critics have been vocal, but when I am out and about and listening to those who are gaining money, I know that targeting money at those who need it is the right approach to tackling poverty. We will continue until the job is done.”
The latest figures published by the Department for Work and Pensions on take-up show the total number of households receiving the entitlement is now 2.62 million (3.18 million individuals).
The figures show that 15,000 additional households (19,000 individuals) started to receive Pension Credit during the month of September.
The average weekly award is £41.67 and 1.96 million households (2.38 million individuals) are now getting more money than was the case under the old Minimum Income Guarantee.
Notes for editors
- Pension Credit statistics will now be published on a quarterly basis, in line with other benefits.
- To ensure that people do not lose out, customers whose applications are successful will have their entitlement backdated 12 months or to the date of entitlement if this is later.
- The 300,000 figure refers to the number of Pension Credit recipients now getting the guarantee part of Pension Credit which previously did not get the Minimum Income Guarantee.
- £40 million additional expenditure, over and above that anticipated in the Spending Review, is going to pensioners who are only eligible for the Guarantee element of Pension Credit, and are not eligible for the Savings Credit.
- Pension Credit guarantees everyone aged 60 and over an income of at least £105.45 for single people and £160.95 for couples.
- Extra amounts will be added for those who have relevant housing costs, severe disabilities or caring responsibilities.
- Pension Credit application line on 0800 99 1234. There is a textphone service for those who have hearing difficulties on 0800 169 0133.
Press office: 020 7238 0866
Out of hours: 07659 108 883
Public enquiries: 020 7712 2171
Website: www.dwp.gov.uk