Experts are warning those applying for Pension Credit to carefully review their application details, following a case in which a pensioner was hit with a £22,000 bill. Pension Credit is a benefit designed to assist those over state pension age who have a low income with living costs. Many eligible pensioners are unaware of the benefit, resulting in nearly a million people missing out on around £1.7 billion. However, claimants must fill out a lengthy application form and provide detailed financial information, and any errors in the application can lead to repayment demands.
The case of Robert Vincent
Robert Vincent, a 75-year-old pensioner from South Wales, was delighted when he was approved for Pension Credit in 2017. However, years later, he received a letter from the Department for Work and Pensions demanding repayment of £22,096. The error was related to his private pension income, which was higher than what he had stated in his application. Facing the prospect of repaying the amount well into his 80s, Robert is struggling to afford the repayments and has had to make significant financial sacrifices.
Pension Credit repayment difficulties
Robert's case is not unique, as thousands of benefits claimants have been required to repay money they were awarded in error. The latest government figures reveal an increase in overpaid Pension Credit, with around £330 million overpaid in the year to October 2022. Experts argue that while it may be reasonable to expect repayments, it is easy for claimants to make mistakes and the longer the time span, the harder it becomes for them to repay the growing sums. They are calling for simpler application processes and improved checks to avoid such situations.
What can you do if asked to repay Pension Credit?
If you have been asked to repay Pension Credit, it is important to review the reason provided by the Department for Work and Pensions. If you believe there is an error, you can contact the Pension Service helpline for clarification or request a "mandatory reconsideration" of the decision. It is crucial to report any changes in circumstances promptly. For those unable to afford the repayments, contacting the Department for Work and Pensions' debt management helpline is recommended. They may agree to reduce the payments or the total amount payable.
Please note that this article is for informational purposes only and does not constitute financial advice. If you require assistance or have specific concerns, please consult a financial professional.
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