MONEY COMMENT
The New Pension Credit

By Jane Mack (TMFJane)
October 6, 2003

I've just spent the morning ploughing through the various guides that have been issued to help people understand the new Pension Credit which came into being this week. And it wasn't much fun.

The general leaflet published the Government is fairly clear but it's the application form and the notes that accompany it that are a trifle off-putting. There are 19 pages of notes and the application form itself has 14 different sections to fill in!

Even the Government has admitted that about one third of the 4-5 million pensioners who are eligible for the Pension Credit won't get it because the claim system is too daunting. I'm not surprised. My in-laws are in their eighties and, although they've both still got their marbles, I know it would be too much for them even if they did need or were entitled to the credit.

Both Age Concern and Help The Aged have produced leaflets that explain how it works but to be honest, it's not the explanation that matters – it's the lack of simplicity. These extra payments are being targeted at some of the most vulnerable sections of the population and it seems so unfair to make it so complicated for them.

To try and combat such criticism, the Government has put in place a free phone application service (Tel: 0800 99 1234) so that people don't have to fill in the form themselves. You still have to get together the necessary paperwork such as your National Insurance number and details of any income and savings, but when you call, someone at the other end will ask you the necessary questions, fill in the form for you and post it to you for checking and signing. They'll be inundated, no doubt, but as long as you make your claim by October 2004, any pension credit entitlements will be backdated.

Find out more about the Pension Credit.