Benefits Stigma Prevents Over 60s Claiming Says Retirement Developer
09/09/2011
Fear of embarrassment and lack of awareness are just some of the factors preventing the over 60s claiming the benefits they are entitled to, according to a survey* from the UK’s leading retirement specialist, McCarthy & Stone.
In the recent poll, almost half of retirees (46%) admitted they didn’t like the stigma attached to making a benefits claim, with a further 69% put off by claiming because of the lengthy and complicated application processes.
Recent government changes have worsened the confusion, making even finding out what entitlements are available problematic. 80% of the over 60s say establishing what they are eligible for is often a difficult task. An additional 40% said they had not reviewed which benefits they are able to claim in the last five years.
However, when asked if the over 60s should benefit from concessions such as winter fuel payments and free bus passes, over 91% thought it was right they did, although 36% did feel such benefits should be means tested.
Colin Cuthbert, benefits advisor for McCarthy & Stone, comments: “It is estimated that over £16 billion of benefits and tax credits goes unclaimed in the UK each year, with as many as 1.7 million pensioners missing out on an average of £31 a week in pension credits.** These are startling figures and the results of our survey clearly demonstrate there is still a long way to go in terms of raising awareness and changing perceptions about what older people can claim.
“Pride and independence will often deter people from applying or they are put off by the complicated system. Many people don’t realise they are entitled to anything, and simply assume they won’t qualify because of savings or other income. However, there are a number of benefits which aren’t means tested.
“We have put together the following guide to help retirees and their families make sense of the system and claim what they’re entitled to.”
Are you missing out?
1. Pension Credit
This is paid in two parts - Guarantee Credit (to top up your weekly income) and Savings Credit (for those on a higher income or who have a small amount of savings). It is worth making a claim, particularly for Guarantee Credit, as it may help towards other expenses such as rent through Housing Benefit, council tax through Council Tax Benefit, or help towards your housing costs if you are an owner-occupier, including ground rent and eligible service charges. You can get a claim form by phoning the Pension Credit Line on 0800 991 234 or by visiting www.direct.gov.uk
2. Council Tax Benefit
You may be able to claim Council Tax Benefit if you are on a low income or are receiving other income-related benefits. You may also be able to reduce your council tax through the Disability Reduction Scheme (if you or someone in your home is substantially and permanently disabled) or The Discount Scheme (if you live alone or no one lives in the property). Claims need to be made through your local council and more information can be found on www.direct.gov.uk
3. Housing Benefit
Housing Benefit helps to pay your rent if you are a tenant. If you are on a low income, you may get some or all of your rent paid. This support does not cover water rates, fuel bills or some service charges such as charges for meals. To claim this benefit, contact your local council or visit www.direct.gov.uk
4. Help with health costs
If you receive the Guarantee Credit part of the Pension Credit, you automatically qualify for help towards health costs. This includes free NHS dental treatment, free prescriptions and an annual eye test. If you do not qualify for the Guarantee Credit but are on a low income, you may still be eligible through the NHS Low Income Scheme. More information on the NHS Low Income Scheme is available by calling 0845 850 1166 or on www.direct.gov.uk
5. Social Fund payments
These provide grants and loans for emergency expenses such as funeral costs or furniture for a new home. They are available to those who receive certain benefits or are on a low income. For more information or to claim, contact your local Jobcentre Plus on 0800 055 6688 or visit www.direct.gov.uk
6. Extra money for heating costs
If you are over state pension age or receive certain benefits such as Pension Credit, you may also get extra money to help in the winter. Winter Fuel Payment is normally paid automatically each winter – call their helpline on 0845 915 1515 for more information. You may also be eligible for a Cold Weather Payment when the weather is very cold (freezing or below for seven days in a row). This should be paid automatically if you get Pension Credit or certain other benefits. For more information, contact your local Jobcentre Plus on 0800 055 6688 or visit www.direct.gov.uk
7. Disability benefits
If you have a disability, you may need extra help with things such as personal care or mobility. You might be eligible for help with the extra expense involved through Disability Living Allowance (if you are under 65 years old when you first claim) or Attendance Allowance (for those over 65 years old). Neither benefit is means tested so it does not matter if you have savings or income. For more information, call the Benefit Enquiry Line on 0800 882 200 or visit www.direct.gov.uk
8. Carer’s Allowance
If you care for someone who is severely disabled, you may be eligible for Carer’s Allowance. Claiming this allowance can affect some other benefits that you or the person you care for receive as it is classed as income. For further information on Carer’s Allowance, call the Benefit Enquiry Line on 0800 882 200 or visit www.direct.gov.uk.
9. Veteran’s Payments
Anyone who has served in the UK Armed Forces - and their widows, widowers and dependents - may be entitled to financial help in the form of pensions or other payments. These are available through the War Pensions Scheme or the Armed Forces Compensation Scheme. For more information call 0800 169 2277 or visit www.direct.gov.uk
McCarthy & Stone offers a free financial health check and a benefits review for anyone purchasing or considering one of its apartments. If you are interested in a McCarthy & Stone property and require benefit advice please contact Colin Cuthbert at McCarthy & Stone on 0800 027 2445 or by email colin.cuthbert@mccarthyandstone.co.uk
The retirement developer is currently selling a range of one and two bedroom retirement apartments at developments across the UK. For further information, please call 0800 919 132 or log on to www.mccarthyandstone.co.uk
* Viewpoint 60+ survey commissioned by McCarthy & Stone
** Citizens Advice Bureau