Almost 60,000 hit by giant pension credit backlog

Nearly 60,000 retirees have to wait months for much-needed pension credit, according to a request for freedom of information.

Widespread government delays have left senior citizens struggling to make ends meet as costs rise without monthly supplements.

The number of claims rose to an all-time high after the Department for Work and Pensions (DWP) launched a campaign urging retirees to apply for pension credit.

However, it has been criticized for being unprepared and unable to handle the resulting surge in applications.

Pension credit is extra money for eligible retirees, to bring the weekly income to a minimum amount.

According to DWP data, 111,550 successful retirement credit applications were submitted between April and August. But only 33 percent of that has been paid, according to figures from stockbroker AJ Bell.

Meanwhile, 58,500 claims filed during that period are stuck in a backlog.

AJ Bell’s Tom Selby says the massive delays are undermining efforts to boost take-up of the valuable benefit.

“It is essential that the DWP puts its house in order and deals with these outstanding receivables as quickly as possible,” he says.

About one in ten out of 850,000 eligible pensioners claim the benefit, with most missing out on a share of £1.7bn.

The government’s cost-of-living support payments paid this winter are another incentive to apply for pension credit.

A successful application submitted before December 18 can qualify someone for a payment of £324 towards living expenses.

Applications for pension credit can be submitted with retroactive effect up to three months, provided that the conditions for entitlement are met during that period.

Pension Credit supplements weekly income to a minimum of £182.60 for singles and £278.70 for couples.

Those caring for a family member can get an extra £38.85 per week, and disabled pensioners can get an extra £69.40.

You are eligible for the allowance if you and your partner have reached state pension age, now 66, and one of you receives rent allowance.

Your pension savings count towards your entitlement to benefits. For savings above £10,000, every £500 above that counts as £1 income per week.

A DWP spokesperson says: “Additional resources are being deployed to ensure we handle the increase as quickly as possible, while successful claims and backlogs are paid accordingly to ensure those entitled to them do not miss out.”