DWP urged to change rules for 800,000 households missing out on key benefit

The DWP has been urged to use its powers to unlock the details of 800,000 households missing out on pension credit.

Outdated data restrictions are preventing data from HMRC and DWP ‘lining up’ in a way that would help pensioners claim thousands of pounds a year, according to experts.

A government drive to increase the take-up of pension credit has been underway since August last year, shortly after it announced it would restrict winter fuel payments to only those claiming the benefit.

The DWP said it had seen a 152% increase in pension credit claims since late July, but there are still hundreds of thousands of households missing out on the payment.

Fabian Chessell, from a social policy analytics company called Policy in Practice, told MPs at a work and pensions select committee on Wednesday that by “unblocking” data sharing, the government could faster identify pension claimants in need, and share that data with local authorities so they could receive extra support.

While he believes the government has the power to “share it tomorrow”, historic limitations and confidentiality provisions are getting in the way.

He said: “By linking HMRC and DWP data, you can look up people with occupational and private pensions.”

Chessell claimed that, currently, the DWP shares just 35% of its data on universal credit claimants with local authorities, painting a “bleaker picture”.

“We think the legal gateways are there, which mean that they could share it tomorrow. By doing so, we can target people pre-retirement so they can tackle the debt they are facing before they are pension age,” he added.

He said that he thinks the DWP have the powers to do this, “but it’s a question of conservatism and complexity.”

“It has got to tackle GDPR and DWP confidentiality provisions, and it’s a lot to get through. However, it’s partly a quirk of history. When the DWP first started sharing data, the limitations they imposed made sense. Universal credit had just been introduced. But that was now over a decade ago, and they haven’t gone back and revisited that.”

What is pension credit?

Pension credit is a top-up benefit for people on low incomes who are over the state pension age.

It is a separate payment to the state pension, and you can still receive it even if you have other income, savings or own your own home.

Pension credit tops up your weekly income to £218.15 if you’re single and adds £332.95 to your joint-weekly income if you have a partner.

You may receive more if you have other responsibilities and costs, and you could get an extra £81.50 a week if you have a severe disability, and an extra £45.60 a week if you care for another adult.

As of this winter, only those in receipt of pension credit are eligible for the winter fuel payment.

It is also a gateway to other benefits, such as a free TV licence if you’re over 75, council tax discount, or housing benefit if you rent the property you live in.

Am I eligible?

To qualify, you must be over state pension age, which is currently 66.

Your weekly income must be less than £218.15 if you’re single, or £332.95 if you’re a couple.

You are automatically eligible for pension credit if you and your partner, if applicable, have both reached the state pension age and one of you received housing benefit.

You can get pension credit even if you have other income outside of the state pension, have any savings or own your own home.

Applications for pension credit can be made four months before you reach the state pension age.

To apply for pension credit, or find out more information, click on the link here.

Yahoo News has approached the government for comment.

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