Pension benefit backdating to be cut

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Pension benefit backdating to be cut

Thu 21st Aug 2008

Thousands of pensioners could reportedly lose hundreds of pounds in benefits under changes coming in in October.

From October 6, pensioners claiming pension, housing and council tax benefits can backdate their claims by only three months, rather than the 12-month limit that currently applies.

The change, which the government estimates will save £100 million, is part of a new initiative allowing pensioners to claim the benefits in a phone call rather than through form-filling.

The Department for Work and Pensions said that over 1.8 million eligible pensioners failed to claim pension credits in the last year, missing out on £2.8 billion.

Under the new scheme, individuals could reportedly lose out on up to £2,000.

Pensions minister Mike O'Brien said many pensioners are not claiming benefits they are entitled tom and said new claimants can still backdate by 12 months if they apply before the deadline.

But Gordon Lishman of Age Concern told the Times that up to £5 billion in benefits is not reaching some of the poorest pensioners and said the government needed to "work much harder".

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