Research Report

We estimate that over £75 million of Pension Credit is currently unclaimed in Greater Manchester and around 43,000 eligible pensioner households are not claiming (an overview can be found in the table below with further details in the local data packs).

Around 50% of that unclaimed amount is attributable to single women, reflecting the disproportionate reliance of this group in Pension Credit.

The low uptake of Pension Credit is disproportionately affecting some of the most vulnerable members of our society. By design, those eligible for Pension Credit are pension-age individuals on some of the lowest incomes and most at risk of poverty.

Increasing uptake would help boost incomes among the poorest at a time of considerable strain due to the economic and employment consequences of COVID-19. This would harness existing resources to reduce inequality and create stronger and more resilient communities.

Issues such as perceived ineligibility, stigma, and apprehension about the application process are much more important than a lack of knowledge about Pension Credit. Any campaigns need to reflect this and go beyond awareness-raising.

The cohort who are eligible for Pension Credit but who are not taking it up is likely to face additional barriers to applying: they are more likely to speak English as a second language, have problems with literacy, or face challenging health issues such as dementia.

There are many passported benefits linked to Pension Credit. The highest-profile of these is a free TV licence for over 75s, but there are many additional ones and these are often worth considerably more, including housing benefit and council tax support, and money towards home insulation.

A well-actioned process to increase Pension Credit uptake does not just benefit the recipients. Increased income and the wider benefits that Pension Credit recipients can access (such as warm home discounts, additional support for carers or reduced eyesight prescription costs) means recipients can stay healthier and happier for longer, reducing their long-term use and cost to health and care services.

Increasing uptake could also help boost local economies across Greater Manchester by increasing spending on high streets and elsewhere.