Government Criticised for 'Back Pay' Benefits Reforms

By Peter Wakeford
Published on 21 Aug 2008
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Government Criticised for 'Back Pay' Benefits Reforms

Pensions minister Mike O'Brien is under fire for the upcoming benefits changes, which means that pensioners have a much shorter time in which to claim money back.

Benefits changes for UK pensioners will see thousands missing out financially, the Times reports.

Under new legislation, pensioners will have the time in which they can claim back backdated pension credits and other government benefits cut from 12 months to three. It is anticipated that this move will save the public purse around £100 million.

The reforms, to be enforced from October 6th, have been introduced by the Department for Work and Pensions (DWP) in order to allow pensioners to apply for benefits over the phone, without having to fill in any forms. The claims system for council tax benefit, housing benefit and tax credits is also to be streamlined, allowing people to secure them all in a single phone call.

DWP figures show that pensioners missed out on £2.8 billion in the tax credits alone, due to not applying for them. Around 110,000 over-65s made a backdated claim for money which was over three months old last year.

Speaking to the newspaper Gordon Lishman, director-general of charity Age Concern, said: "With up to £5 billion in benefits still failing to reach some of the poorest pensioners, the government must work much harder to get benefits cash to those who are entitled to it, as soon as they become eligible."

However, the government has launched a strong defence of the policy change. Mike O'Brien, the pensions minister, said: "Many pensioners are still not claiming benefits they may be entitled to, which is why we are making every effort to urge pensioners who may be eligible to claim and making the process as easy as possible."

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