The UK has about 1.6mn older people who are living in poverty, the Office of National Statistics has revealed. Charity Age UK is urging older people to apply for a free benefits pension test.
Boris Johnson confirmed his commitment to retaining the triple lock pension — an agreement by which the government must increase the state pension every year by the highest level average UK earnings growth, inflation or 2.5 per cent.
However, a long-awaited solution to the social care crisis has been delayed until later this year. The Treasury has been keen to impress upon Downing Street that it could have to raise taxes or cut spending to find the extra £4bn for keeping the triple lock pledge this year, according to Sunak’s allies.
Since 2013/14, the number of pensioners in poverty has risen by almost a third (31 per cent) from 1.6 million. Official figures show that a third of Asian older people (33 per cent) and just under a third of Black older people (30 per cent) in the UK live below the poverty line, compared to 16 per cent of White older people. The over-85s, renters, and single, female pensioners, are also at greater risk of poverty than the older population as a whole. The total number of older people living in poverty in the UK now stands at 2.1 million.
Despite these high numbers and recent government figures showing that nearly a million older people could not afford an unexpected bill of £200, nearly a million (920,000) pensioner households are missing out on Pension Credit payments worth up to £1.6 billion every year– that’s an average of £32 a week, or over £1,600 a year, per recipient.
In an exclusive comment for Asian Voice Caroline Abrahams, Charity Director at Age UK, said:
“It’s sad to realise that the burden of poverty in old age is falling disproportionately on Black and Asian older people in our society at the moment. For their sake and, indeed, for the sake of anyone forced to scrimp and save in their later years, we should do everything possible to raise their incomes, so they can enjoy the dignified and comfortable retirement they deserve. The number of older people living in poverty has risen steadily over the last few years across the board and there are a lot of older people worried sick about how they’ll cope if their heating or their cooker breaks down and needs replacing.
“It’s deeply frustrating that the money is available to top up the incomes of pensioners who live on the lowest incomes but that much of it goes begging every year because many never claim what is rightfully theirs. It's especially important to claim Pension Credit because once gained it entitles you to other forms of financial help too – but that means putting in a claim.
“There are many reasons why older people don’t claim, including lack of awareness, worry about filling in long forms or disclosing personal information, feeling there is always someone worse off than they are, or is determined not to ask for help, even though in reality they badly need it.
“The great thing about Pension Credit is that it not only gives older people extra cash in their pocket, it can also open the door to other benefits such as a free TV licence for the over-75s, free NHS dental treatment, hospital transport, help with Council Tax and rent, and Cold Weather Payments. We’re urging anyone who is struggling financially to get in touch for a free benefits check – it could make a huge difference to the rest of their lives.”
Over 53% per cent people aged 65+ targeted by pension fraudsters
Age UK has found that over half (53 per cent) of people aged 65+ believe they have been targeted by fraudsters. While only one in 12 responded to the scam, 70 per cent of people of all age groups who did respond said that they had personally lost money.
This could mean that a staggering half a million older people have fallen victim to losing savings. Recent reforms to private pensions make it likely that people retiring will be targeted by fraudsters who know that they can now draw all their pensions in cash. There is an urgent need for stronger leadership, coordination and ambition in tackling scams. Age UK calls on the Government to set up a National Scams Task Force to bring a renewed focus, building on the good work that is already going on.
Older people may be especially at risk due to social isolation, cognitive impairment or bereavement It is extremely worrying that people in vulnerable circumstances may be put on so-called ‘suckers lists’ that are used and shared by fraudsters in the UK and overseas. This can lead to people being repeatedly targeted; for example, being sent many letters every day. This can result in people becoming ‘chronic victims’.Some victims lose tens of thousands of pounds from hard-earned savings. The research also suggests that a third of older people who responded may have lost £1,000 or more.
In a short q&a, Age UK answered the following questions for Asian Voice:
What about those who own homes in the EU but live in the UK or vice versa? How can they avail themselves of pension benefits?
Pension credit is a benefit for people who live in the UK it is not paid to people who live in other countries. It is based on someone’s income and savings/capital.
How are NHS doctors impacted by this, if at all they are?
We are not sure how this issue affects NHS doctors, but pensioners who do not have an occupational pension – as NHS doctors will – are four times as likely to be in poverty as those who have an occupational pension (40% with no occupational pension compared to 10% with some occupational pension). I think it reasonable to conclude that retired NHS doctors are unlikely to be in pensioner poverty.
What kind of provisions and help are available for disabled people?
Attendance Allowance (AA) is a benefit for older people who may need extra help to stay independent at home due to an illness or disability. There are two weekly rates: • £60.00 (lower rate) if you need help either in the day or at night • £89.60 (higher rate) if you need help both in the day and at night
Is pension poverty different for different genders? Are widows included?
20% of women are in poverty compared to 16% of men. There is no breakdown of these figures by ethnicity and there is no specific information about whether people are widowed.
100-year-old finally claims state pension
100-year-old Margaret Bradshaw has just started claiming her state pension. According to reports, Margaret did not know that she was entitled to state pension until her 78-year-old daughter Helen Cunningham, read an article about tens of thousands of pensioners who might have missed out because the Department for Work and Pensions (DWP) never notified them that they were entitled to claim. On June 30, Margaret finally began receiving £82.45 a week. She was entitled to a non-contributory pension from the age of 80. “She has been given a year’s worth of backdated payments — £4,000 — but has missed out on more than £75,000,” FT reported.
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