Forum Brief: Benefit take-up

Pensioners, families with children and people in low paid work are failing to claim up to £6 billion in means-tested benefits, official figures released by the Department for Work and Pensions have revealed.

Party Response: Conservative

Nigel Waterson, shadow work and pensions minister, said: “These low take up figures for means tested benefits are especially worrying. The take up for council tax benefit in particular has fallen again and for pensioners the take-up figure is little more than 60 per cent. These figures show that means-tested benefits do not reach millions of poor pensioners.

“While we urge all pensioners to claim the benefits they are due, only the Conservative policy of restoring the earnings link for pensions will reach all those who need help.”

Party Response: Liberal Democrats

Steve Webb, work and pensions spokesman, said: "It’s a disgrace that pensioners and families are missing out on so much cash.

"The figures show that the government strategy of introducing more complexity and more form filling means less people receive what is rightfully theirs.

"Pensioners face a Council Tax double-whammy. First they are hit by the unfair tax. Then they’re faced with a complex benefit that even Einstein couldn’t understand. The government should axe the tax and replace it with a fairer system based on the ability to pay."

Forum Response: Age Concern

Age Concern's director-general Gordon Lishman said: "These figures are profoundly disturbing. At a time when many pensioners are struggling to meet rising costs such as council tax, it is extremely worrying to see so many not claiming the benefits they are entitled to. These latest figures show that pensioners are more likely than any other group to miss out on benefits and take-up is getting worse.

"Many pensioners fail to claim because they don't realise they are entitled, some are put off by the complexity of the system and others feel there is a stigma attached.

"Up to £770 million in council tax benefit for older people is lying unclaimed every year and up to 1.7 million pensioner households are missing out. By making a claim, the average pensioner's council tax bill would be cut by more than £425 a year. The problem is particularly acute amongst homeowners, with less than half claiming.

"In the short-term we will work with the government to help get this money to older people, many of whom are vulnerable and hard-to-reach. However these figures should deeply alarm the government and question the long-term sustainability of means-testing.

"The basic state pension is far too low and the government must increase it to at least £100 a week to ensure every pensioner has enough money to cover day-to-day living costs. Council tax must also be replaced by a fairer system of taxation that takes into account people's ability to pay rather than the value of the property they live in."

Forum Brief: Counsel and Care

Martin Green, chief executive of Counsel and Care, told ePolitix.com: "It is clear that the means testing of benefits is a significant barrier to take up.

"I believe that benefits should be integrated into the tax system, with some people paying tax and others receiving payments . This would reduce stigma, ensure people received their entitlement and cut down on the costs of administration"

Forum Response: Help the Aged

Richard Wilson, policy officer incomes for Help the Aged, said: "These figures further highlight the shambles of the government's council tax policy, and demonstrate how the poorest pensioners are facing bills they simply cannot afford to pay.

"The take-up rate for council tax benefit has fallen by five per cent, with now as many as 43 per cent of pensioners who are eligible to reductions not getting the financial help they need.

"The government and local authorities inability to get these reductions to the pensioners who need them is scandalous.

"Ministers have known that Council Tax Benefit take-up has been a problem for years, but have done nothing about it. Over the past few years the poorest pensioners have paid billions of pounds worth of Council Tax that they shouldn't have.

"The government need to make an immediate pledge to increase take-up of Council Tax Benefit to at least 90 per cent over the next two years to ensure this scandal does not continue."