State pensioners who cannot claim Pension Credit could still receive £400 towards essential bills, according to BBC Radio 4's Moneybox presenter Paul Lewis. The boost comes through housing benefit and council tax reduction, which are available independently of Pension Credit.
Mr Lewis has been raising awareness of the financial support available to retirees after a report from the charity Independent Age highlighted that hundreds of thousands of older people are missing out on help with income, rent and council tax. He spoke about the issue on Radio 4's Moneybox programme.
Pensioner on the Isle of Wight sees monthly income rise by £400
Mr Lewis shared the case of Valerie, a pensioner living on the Isle of Wight. Valerie's income comes solely from the state pension, which she described as small. Her rent on a two-bedroom terrace house costs £860 per month, leaving her just £300 to live on each month.
Valerie told the programme: "I basically kept using my credit card because that's the only way I could survive. I never put my heating on because this house is all electric. When it's really, really, really cold I just used to stay down here at night and just curl up on the sofa. I'd curl up with my quilt over me and that's how I slept to keep warm."
Her situation improved after she contacted Independent Age, who advised her that she qualified for housing benefit, which also provides council tax relief. This boosted her income by £400 per month, allowing her to eat better and visit her family.
Independent Age calls for simpler system and targeted strategy
Morgan Vine, director of policy at Independent Age, said: "We're not talking about large amounts of money that have really transformed Valerie's life and our independent advisers speak to people every day in this situation who are struggling to use warm water, they're no longer eating hot food, they're very very worried and anxious about their rent etc. So it's really important that everyone gets the money they're entitled to."
Ms Vine highlighted the complexity of the benefits system as a key barrier. She said: "Part of the problem is that it's an incredibly complex and confusing system, so it's always worth trying to find out if you're entitled to housing benefit or council tax reduction. Council tax reduction can actually take someone's bill later in life from a full amount to zero so it really matters and can make a big difference to people's lives."
She added: "The government has made some positive steps but we want to see a targeted strategy that's published and we can hold them to account on. We need to be looking at partial auto enrolement, can we make reform simpler, how do we target the groups at most risk."
Mr Lewis said: "Buying healthy food, keeping warm, staying in touch with family and friends, these are the basics of a reasonable life. But many pensioners are on incomes that are so low they fine affording even those basics a struggle."
Independent Age's report, published this summer, found that hundreds of thousands of older people face such struggles because they do not claim the help they are entitled to. The charity's advisers continue to encourage pensioners to check their eligibility for housing benefit and council tax reduction, which can provide significant monthly savings.
