From the Treasury to Treorchy: Increasing Pension Credit Uptake in Wales – Summit Report
The Older People’s Commissioner for Wales
The Older People’s Commissioner for Wales is an independent voice and champion for older people throughout Wales.
The Commissioner is taking action to protect older people’s rights, end ageism and age discrimination, stop the abuse of older people and enable everyone to age well.
The Commissioner is working for a Wales where older people are valued, rights are upheld and no-one is left behind.
How to contact the Commissioner:
Older People’s Commissioner for Wales
Cambrian Buildings
Mount Stuart Square
Cardiff
CF10 5FL
Phone: 03442 640 670
Email: ask@olderpeople.wales
Twitter: @talkolderpeople
Website: www.olderpeople.wales
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Mae’r ddogfen hon ar gael yn Gymraeg // This document is available in Welsh
Background
With almost 1 in 5 older people in Wales living in poverty, and the cost-of-living crisis putting the health of many older people at significant risk, it is more important than ever that people receive
the financial support to which they are entitled, including Pension Credit, which can offer a lifeline to some of Wales’s poorest and most vulnerable older people.
Pension Credit provides extra money that can help with living costs to people over State Pension age on low incomes, topping up a single person’s weekly income to £182.60 (£278.70 for couples).
Pension credit is worth an average of £65 a week to those who are eligible, and also unlocks other entitlements that provide further financial support, including council tax discounts and help with housing costs, free dental and eye care, and free TV Licences for people aged 75+. Specific additional help with heating costs available for people who receive Pension Credit includes the Warm Home Discount (£150), Cold Weather Payments (£25 for each week of cold weather) and Cost of Living Payments (£650 in 2022 rising to £900 in 2023).
In November 2022, the Commissioner published a briefing paper, which highlighted that up to 80,000 older people in Wales do not receive the Pension Credit they are entitled to. This means
that over £200 million is left unclaimed in the UK Treasury, rather than reaching those who need it most.
The briefing called on the Welsh Government and local government to deliver urgent action to significantly increase the number of older people in Wales receiving Pension Credit, highlighting the crucial role that the third sector could play in taking this forward. The briefing also set out the actions the Commissioner would take to help ensure that older people can access the information and support they need to claim the Pension Credit they are entitled to.
One of these actions was to hold a Pension Credit Summit to bring together national and community-based organisations and inspire and support action throughout Wales. This online event took place on 8 December 2022 and was attended by a range of key individuals and organisations, all contributing ideas and pledging actions to help reach more people who are currently missing out.
Part of the event activity was encouraging individuals and organisations to make a Pension Credit Promise – an action, big or small, that they would take in order to encourage and support
older people who are eligible to claim what’s theirs.
The Summit
The Summit was chaired by the Older People’s Commissioner for Wales, Heléna Herklots CBE, who was joined by a range of speakers and contributors to the panel discussion:
- Carol and Siw – older people with experience of claiming Pension Credit;
- Hannah Watson, Rhondda Cynon Taf CBC’s Older Persons Coordinator;
- Heather Ferguson and Nel Price, Age Cymru;
- Paul Phillips, Department for Work and Pensions (DWP); and
- Paul Neave, Welsh Government Social Welfare Advice and DWP Policy team.
Attendees at the Summit came from a wide range of sectors including older people and representatives from older people’s organisations, third sector partners, advice organisations, local authorities, town and community councils, faith groups, DWP and the Welsh Government.
Key Themes from the Summit
Language
The language used when talking about and/or promoting Pension Credit emerged as a key theme from a range of participants. The language around ‘benefits’ or anything that hints at the suggestion of ‘hand outs’ needs to be avoided in favour of a consistent focus on ‘entitlements’ and ‘rights’, encouraging people not to miss out on financial support that is legally theirs.
The language used around Pension Credit needs to be ‘enticing’ rather than bureaucratic or off putting, and it was highlighted that this sort of approach underpinned the Welsh Government’s
‘Claim What’s Yours’ income maximisation campaign.
“Wording it in a way that’s sort of inviting you to do this thing because it’s there to help you, you’re entitled to it…wording it to encourage people.” – Siw
Awareness and effective communications
Awareness of Pension Credit and the range of additional entitlements it unlocks still isn’t high enough. Participants commented that too many people still don’t know that it exists.
“I wasn’t aware of Pension Credit for a long time until I found out there were a lot of people not getting it.” – Carol
This lack of awareness isn’t confined to people who might be eligible but in many cases extends to those who are in a position to highlight Pension Credit, and who would be happy to do so. For example, via the event ‘chatbox’, Age Alliance Wales said that they’d written to every councillor in Wales to ask them to make every contact count in relation to raising Pension Credit. The
letter received many positive responses and requests for more information.
Local councillors are in a good position to help spread awareness of entitlements but cannot do so if they don’t know about Pension Credit.
The role of elected representatives
Elected representatives can also play a big part in increasing take up of Pension Credit by engaging with constituents.
One Welsh MP recently wrote to 6,500 residents encouraging them to attend a Pension Credit Day of Action with two local Citizens Advice offices.
Around 200 people attended and £200,000 in unclaimed benefits (not just Pension Credit) were identified and applications made.
The fact that many older people don’t think that they will be eligible for Pension Credit was also raised. Some older people may be ‘asset rich but cash poor’ or assume that they are not eligible because they have some savings or an occupational pension.
The message that people might still be able to receive Pension Credit in these circumstances needs to be communicated more strongly. Similarly, some older people aren’t sure if they already receive Pension Credit, potentially thinking that they aren’t missing out when in fact, they are. It therefore needs to be easy for people to check whether they may be eligible.
“Even my [relative] who’s very savvy about things said ‘oh, you’ll have too much’.” – Siw
Effective communications are those that really consider the audiences that they are trying to reach. Participants in the Summit noted the importance of not relying on digital or online
communications as many older people are not online, either by choice, because they don’t feel confident or safe online, or because they lack the necessary equipment or internet access. Even where older people are comfortable using the internet to keep in touch with family and friends or to access news, this does not necessarily extend to online banking or filling in official forms.1
Advertising on television and radio, targeting programmes or channels that older people are more likely to watch was suggested as an effective way to spread the message on Pension
Credit. It is important to note that this may not always be an effective way to reach older people from Black, Asian and Minority Ethnic communities who do not always watch the same TV programmes or listen to radio, sometimes due to language barriers. Newspapers were also raised as an effective way to reach older people, along with advertising on buses or trains.
This approach was reflected by DWP who ran their own Pension Credit take up campaign earlier this year, which included advertising in newspapers across Wales. DWP will again be
using their communications about the uprating of benefits to highlight Pension Credit in a letter that will reach 11 million people across the UK in January 2023.
1 DWP acknowledge that only 22% of Pension Credit recipients surveyed stated they had access to digital devices and importantly, felt confident to transact with government via internet. DWP does not issue online communications to pensioners but utilises land mail. DWP’s Pension Service is built to provide a telephony service, but also caters for those who prefer an online service, a postal service and with both a text service and Video Relay Service is available for any with communication needs. Finally, DWP retains a home visiting service to provide a friendly face to those with communication difficulties or who are vulnerable.
Using existing communications was suggested as a helpful and effective a way to highlight Pension Credit at an appropriate point, such as asking someone whether they want to apply for
Pension Credit as part of the information they are sent in advance of receiving State Pension.
However, time and again, the importance of hearing about Pension Credit from trusted individuals – including friends and family, recognised organisations and, most importantly, other
older people who had successfully claimed Pension Credit – was emphasised, and the value of this was particularly underlined by Siw and Carol’s contributions.
Good Practice: RCT Winter Welcome Centres
In an example of good practice, Rhondda Cynon Taf CBC’s Winter Welcome Centres are designed as relaxed environments, close to home, where people can spend extended periods of time. Hot drinks and snack are provided with the aim of creating a comfortable space where conversations about available support, including Pension Credit, can take place.
In response to feedback from older people that it can be difficult to know exactly what help is available, partners including Citizens’ Advice, Action for Elders, Care and Repair and Digital Communities Wales have visited local venues to chat to people and discuss the kinds of support they might be able to access.
Uncertainty or confusion about what support exists – reflected in RCT CBC and Age Cymru presentations as well as the discussion by participants and as part of the ‘chatbox’ – was also a common theme. There needs to be a greater emphasis on getting information to older people, rather than just relying on methods that encourage people to seek it out. Some innovative ways of doing this were suggested in the ‘chatbox’. For example, one attendee involved in delivering hot meals said that they could take the opportunity to raise Pension Credit with the people
to whom they deliver in future. It was also suggested that older people’s clubs could be used consistently to spread the word about Pension Credit.
Barriers – Stigma, embarrassment and suspicion
A number of participants noted that some older people feel a sense of shame, embarrassment or stigma around seeking support, including Pension Credit, and that people can feel too
embarrassed to say that they need additional money to manage.
“I think people either think they’re not going to get it or they’re too embarrassed to say well they need the money.” – Carol
The Age Cymru Advice service spoke about people apologising for asking about what support is available and saying that they never thought they’d be in this position. The Advice service also detected an increase in people contacting them specifically to ask about what other support they might be able to access, whether financial, home repairs or insulation etc. They said that this contrasts with the situation previously where exploring queries in more depth might reveal a financial support request. Instead, more and more often, these are raised upfront, indicating the
severity of the situation in terms of the cost-of-living crisis.
Fortunately, however, embarrassment is not universal, as demonstrated by Siw and Carol, with Siw noting that she ‘tells people cheerfully that I’m on it [Pension Credit]’.
This sort of ‘ambassadorial’ role, to encourage people to claim Pension Credit, would play a huge part in helping to challenge stigma.
It was also interesting to note that the wider impact of the cost-of-living crisis, which is affecting a large number of Wales’s citizens of all ages and has led to more discussion about government support, may be having a side effect of normalising or making the process of checking that people are maximising their incomes less stigmatising. People contacting Age Cymru Advice sometimes mention that they’ve seen issues or types of support mentioned on television which helps to create a sense that investigating help is more acceptable.
Siw and Carol both highlighted that some older people might say that they didn’t need the money if asked about Pension Credit and the help it can unlock, regardless of their situation, while others simply do not want to ask for help. This emphasises why the language used and the way support is framed is crucial to encourage people to take up their financial entitlements.
A number of other barriers were also cited, including suspicions about something that sounds too good to be true (‘money for nothing’) and potential scammers, concerns about disclosing
financial information, or engaging with agencies like DWP. Similarly, some older people who contacted Age Cymru Advice were concerned about the chances of successfully claiming
Pension Credit (or other support) but becoming ineligible in future and suddenly being faced with having to pay back a large amount of money.2
Trusted organisations such as Age Cymru, Age Connects, Citizens’ Advice and many others play a crucial role in acting as first points of contact for older people who want to discuss issues
and eligibility with them first before making any approach to DWP. Furthermore, reflecting the fact that people’s circumstances may change, the ability of organisations to stay in touch with older people beyond any initial claim, is also important to tackle these kinds of barriers and fears. In order to deliver this crucial information and support, however, there needs to be sufficient funding for organisations providing these kinds of services.
Advice and support during the claims process
The importance of support through the claims process, especially face to face, in-person support, shone through the Summit. Siw explained how she met with someone from Age Cymru who supported her to apply for Pension Credit over the phone, using the DWP’s Welsh language service. (While Siw is not a Welsh speaker, the Age Cymru representative had noted that it was sometimes easier to get through using the Welsh language service). A friendly face, in person, was felt to be more helpful than a videocall. Care and Repair’s offer of a financial check during visits to homes, highlighted via the ‘chatbox’, is another important way of reaching older people and raising the issue of support.
2 Following the Summit, DWP noted that this is not an uncommon perception but also that older people’s other income can fluctuate upwards. If someone was eligible for only a small Pension Credit award, an increase in a private or occupational pension could subsequently make them ineligible. Other circumstances could include a sudden change in capital (e.g. inheritance) or a change in household composition (e.g. partnering with someone below pension age) or going abroad for a prolonged period. While this means that such concerns are somewhat grounded in reality, DWP highlighted that they will only seek repayment of benefit when it is clearly established that
the customer either misled when making a claim, or later fails to tell of a change in their circumstance that affected the rate of payment.
While many older people are comfortable accessing services provided by Age Cymru or Citizens’ Advice etc., having friends or family who can help with claiming was also highlighted as being incredibly useful. There was recognition, however, that not everyone has this option, and that friends and family might themselves struggle with the process, which is why other sources
of advice are crucial.
Good Practice: Care and Repair Cymru Healthy Home Check
Care & Repair Cymru is a Wales-wide housing charity that specialises in home adaptations and repairs for owner occupiers and private renters over 60. As part of their service, all clients are offered a Healthy Home Check, including a financial wellbeing check, to make sure they are able to manage at home and the space is warm, safe and accessible.
Last year Care & Repair’s income maximisation work, which included highlighting Pension Credit where appropriate, helped 2,173 individuals increase their annual income on average by £3,865.
DWP offer the option of a home visit via their team of visiting officers who operate across Wales. They can arrange to see someone within 24 hours, however, this resource is extremely limited and is mainly for people who are seen as vulnerable. The challenge of making a claim via the DWP telephone line was raised. All DWP Pension Credit telephone numbers are now freephone lines although this was not always the case, leaving some people concerned about potential costs. It is important to ensure older people and friends and family are aware that there are no longer charges for phoning DWP about Pension Credit. Due to high call volumes, it can take a long time to get through to speak to DWP but extra resources are being put in place to address this.
Other issues
A number of other issues were raised at the Summit. These included the variety of associated positive benefits of bringing more money into communities via Pension Credit: money circulating in local communities can help support local high streets and businesses based closer to where people live.
More worryingly, participants spoke of the increase in mental health problems and of older people feeling socially isolated as they could not afford to go out. Pension Credit is vital financial
support to help with everyday activities, which is why encouraging take up matters so much.
“I’m so thankful. It’s made all the difference between being really worried…it’s the extra things that come in, going for your glasses and the dentist if you can get one…That makes a huge difference, those things.”- Siw
Finally, and extremely troubling, is the group of older people who genuinely aren’t eligible for Pension Credit due to finding themselves a very small amount – sometimes just a few pence – over the threshold, thereby missing out on hundreds of pounds of extra support. There is a need to find ways to ensure that people in this position are supported in other ways: this cliff edge of eligibility has serious implications for the health and well-being of older people over the months ahead.
Action and activity from the Welsh Government and Department for Work and Pensions
In addition to actions set out elsewhere in this report and in separate updates, the Summit noted that Welsh Government is committed to increasing the take up of Pension Credit in a variety of ways. For example, the Welsh Government’s Pension Credit Task and Finish Group is considering how best to use the available data – such as that held by local authorities – to target people who are currently missing out on Pension Credit, as well as maintaining the Claim What’s Yours campaign.
Welsh Government Minister for Social Justice, Jane Hutt MS, wrote to the Secretary of State for Work and Pensions to encourage DWP to take the lead in a UK wide take up campaign of entitlements. As part of this, resources to navigate the benefit system would need to be provided either via local DWP services or third sector partners. The Social Justice Minister has also made a Pension Credit Promise which includes discussions with DWP on increasing take up.
This is timely as DWP emphasised that they are keen to work with anyone on reaching people who should be receiving Pension Credit but are currently missing out. While there is no fool proof solution, DWP accept the need to do things differently in order to reach older people more effectively. Data targeting, for example, was highlighted as a good idea.
DWP also accept that they have a negative image in the minds of some people. They are keen to partner with other organisations to help show that they are genuinely here to help older people to access support that they should be receiving.
Helpfully, the new Minister for Pensions, Laura Trott MP, is keen to encourage the take up of Pension Credit. The Commissioner will write to Ms Trott sharing the report from the Summit, setting out the actions needed to promote the take up of Pension Credit across Wales and seeking a meeting to progress this as part of future UK Government work.
Like the Welsh Government, DWP are also taking a variety of actions that it was not possible to cover in the Summit. These include improving the process of acknowledging receipt of claims
for Pension Credit and renewed efforts to encourage people to claim ahead of the cut-off date for eligibility for the next UK Government cost of living payment (18 December 2022).
Pension Credit Promises made by speakers at the Summit included:
- To continue to work together, locally and nationally, to promote Pension Credit, targeting specific groups who are likely to be underclaiming.
- To change the language and rhetoric around benefits and focus on entitlements.
- To work with the UK Government Pensions Minister on using existing data – for example housing benefit and council tax benefit – more innovatively to increase take up of Pension Credit.
- To be a contact point where older people can return to check in on any concerns that have about changing eligibility so that they feel confident to claim.
- To continue to work as one team with the same focus on ensuring older people across Wales receive all the support they should.
- To set aside institutional or organisational rules as far as possible to break down barriers and get Pension Credit into people’s bank accounts.
Next steps
The Summit is the start of further action as all stakeholders consider what can be done in both the immediate and longer-term to make sure Pension Credit reaches more older people who are currently missing out.
This report will be shared with everyone who participated in the event and is available on the Older People’s Commissioner for Wales website for wider access. The Commissioner also continues to encourage everyone to make a Pension Credit Promise and think about the action they could take in the course of their everyday lives – however big or small – to raise awareness and help ensure older people do not miss out on Pension Credit.
The Summit demonstrated the commitment of individuals and organisations across Wales to reach those older people who are currently missing out on Pension Credit and it is vital that this
momentum is maintained in the months ahead.
Action from the Commissioner
The Commissioner will take a number of actions over the coming months:
- Continue to engage with older people throughout Wales to better understand how to improve take up of Pension Credit, draw attention to their experiences, and address the challenges posed by the cost-of-living crisis.
- Write to Laura Trott MP, UK Government Pensions Minister, sharing the report from the Summit, setting out the actions needed to promote the take up of Pension Credit across Wales and seeking a meeting to progress this as part of future UK
Government work. - Carry on working with key stakeholders, including Welsh Government, local authorities, the Welsh Local Government Association and DWP who can provide expertise to the campaign, including on Pension Credit processes and data with the focus on how to use available data to effectively target older people who are missing out.
- Use all available communication and engagement channels to reach out to older people and their families and raise awareness about Pension Credit and how to claim.
- Encourage people to make and keep a Pension Credit Promise setting out the action they can take, sharing existing Promises to inspire others to act.
- Collect, publicise and promote examples of the actions stakeholders are taking to increase Pension Credit take up, using the Commissioner’s website as a hub for information, resources and ideas.
- Highlight to the Welsh and UK Governments the specific problem of the cliff edge of Pension Credit whereby those who are ineligible by a few pence thereby miss out on hundreds of pounds of support.