Pensioners fail to claim benefits

Up to 2 million pensioners are missing out on council tax benefit, which could cut their bill by more than £500 a year, a charity said today.

Age Concern said council tax aid was the most unclaimed benefit available to older people, with pensioners missing out on £1.1bn a year or an average of £540 each.

That is a significant proportion of the average band D council tax bill, which rose this year by 4.5% to £1,214 a year.

The charity said spiralling household bills had left millions of older people struggling to make ends meet, but despite this they were still more likely than any other age group to fail to claim money they were entitled to.

It said government figures showed that pensioners were failing to claim up to £4.1bn in benefits every year.

The group today launched Your Rights Week, its annual campaign to encourage older people to claim all the money that is available to them.

It said the pension credit, council tax benefit, housing benefit and attendance allowance were the main benefits older people were missing out on.

Reasons for not claiming the cash ranged from people not realising they were entitled to it, not knowing how to go about claiming it or feeling there was a stigma attached to benefits and preferring to make do instead.

Gordon Lishman, Age Concern's director-general, said it was very worrying that so many older people were not getting the financial help that they were entitled to.

"Millions of pensioners across the UK are struggling to manage on a really low fixed income and are increasingly anxious about paying their bills," he said.

"We would urge all older people finding it difficult to make ends meet to contact their local Age Concern and ask for a benefits check. Age Concern advisers help older people claim benefits worth millions of pounds every year."

James Plaskitt, the benefits minister, said he welcomed the charity's campaign and that the government had taken steps to simplifying the claim process.

"Pensioners can now claim council tax benefit, housing benefit and pension credit in one phone call," he said.

Council tax benefit is available to all low-income households. It is means tested and pays all, or some, of the tax depending on income.

In last year's budget the chancellor, Gordon Brown, gave pensioners a payment of £200 to offset the increase in council tax bills.

But this year he decided not to make a second payout - a move that was criticised by charities representing older people.