A significant number of older homeowners in the UK are missing out on vital financial support, according to a new survey. Nearly two-fifths (38%) of homeowners aged 65 and over have never checked their eligibility for state benefits beyond their state pension, highlighting a worrying trend of missed opportunities.
The research, conducted by HUB Financial Solutions, surveyed over 1,000 individuals aged 65 and above, revealing a stark difference between homeowners and renters. While 38% of homeowners had never checked their entitlement to additional benefits, only 15% of renters had failed to do so. This suggests a possible misconception that homeownership excludes individuals from accessing certain benefits.
Despite government initiatives to raise awareness and encourage benefit applications, only 20% of homeowners confirmed their eligibility within the past year, compared to 41% of renters. This lack of awareness is costing older homeowners dearly, with research by Just Group highlighting significant financial losses associated with unclaimed benefits.
The study found that 79% of eligible retired households missed out on benefits, resulting in an average annual loss of £1,231 per household. Furthermore, 9% of eligible pensioners claimed benefits but received less than they were entitled to, losing an extra £476 annually.
Government data from 2022 paints a bleak picture of the scale of this issue. Up to 880,000 retired households failed to claim Pension Credit, missing out on an average of £2,200 per year. Additionally, 360,000 households missed out on Housing Benefit, resulting in a loss of nearly £3,400 per year. In total, an estimated £3.4 billion in benefits remained unclaimed.
Matt Halksworth, Head of Customer Solutions and Advisory Leader at HUB Financial Solutions, emphasised the importance of checking benefit eligibility, especially in light of recent economic pressures.
"While inflation may be easing, many pensioners have experienced a squeeze on their budgets over the past few years," he explained. "The recent decision to limit winter fuel payments to those on Pension Credit or other means-tested benefits underscores the importance of individuals understanding their entitlement."
Halksworth expressed concern about the findings, stating, "It's disheartening to see so many homeowners over 65 not checking their benefit entitlement when we know many are eligible and missing out on significant amounts of income. We urge pensioners, homeowners or otherwise, to avoid assuming they are not eligible for support and instead utilise the many free resources available to help identify their eligibility and claim the benefits they deserve."
The research serves as a stark reminder of the need for greater awareness and accessibility to information regarding state benefits. By encouraging individuals to check their eligibility and highlighting the potential financial losses associated with missed benefits, the government can help alleviate the financial burden on a significant portion of the UK's elderly population.
