CEO OF MCCARTHY STONE URGES OLDER PEOPLE TO CLAIM ENTITLEMENTS NOW TO READY THEMSELVES FOR BENEFIT CHANGES THIS WINTER

The CEO of the UK’s leading developer and manager of retirement communities is urging older people across the country to urgently check what they can claim in entitlements ahead of the coming winter. The call comes as the public face further uncertainty after the Government announced it would hold a vote on reducing access to the Winter Fuel Payment which is set to take place on Tuesday 10 September. This comes alongside news that the average energy bill will rise by 10% following the increase to the energy price cap, putting more pressure on older households[1]. Whatever happens, taking action now could leave older people hundreds of pounds better off.

McCarthy Stone, which operates nearly 550 retirement communities across the UK for 21,500 people is encouraging its homeowners and older people across the country to claim Pension Credit to help them counter ongoing cost of living pressures after official figures showed that 880,000 eligible households are missing out.

Claiming Pension Credit then entitles people to continue to claim the Winter Fuel Payment – which is worth up to £300 a year tax free – after the Government recently announced that only households receiving Pension Credit or other means-tested benefits will continue to receive the Winter Fuel Payment. If Tuesday’s vote goes in favour of reducing access to the Winter Fuel Payment, is estimated that around 10 million of the 11.4 million people who claimed the payment last year will lose out. Worse still, older people are likely to further feel the squeeze in the coming months as they prepare to be hit by the imminent raise in the energy price cap. This is set to see the average UK household paying nearly £150 more for their domestic fuel each year, potentially leaving older people up to £450 worse off a year.

Whilst Pension Credit is only available to people of state pension age (66 or above), McCarthy Stone says that ALL over-60s should be taking an urgent look at what financial support they are currently claiming – and what else they may be able to access[2]. John Tonkiss, Chief Executive Officer at McCarthy Stone, explains: “The potential new restrictions to Winter Fuel Payment and rising energy bills for households means now is the time to act and look at eligibility for state benefits. We are advising our homeowners in our developments to claim Pension Credit, Attendance Allowance and other benefits through our local teams. If older people in wider society are concerned about these changes, we encourage them to look at what benefits they are entitled to and reach out to organisations who can help unlock vital financial resources that could make a real difference in the months to come.”

Pension credit is currently set at a weekly minimum of £218.15 for single people and £332.95 for couples, while the Winter Fuel Payment starts from £200 for a home with a single person or couple under 80, to £300 where both occupants are above 80. Pension Credit claimants can also receive other support such as reduced Council Tax, free NHS dental treatment, a voucher towards the cost of spectacles, and a free TV licence if they are 75 or over.

In view of the further hikes in domestic energy costs and changes to care-related benefits, now could be an excellent time for some older people to re-examine their living arrangements too. Many still live in large period properties built during times when the quality and availability of insulation materials was lower. Moving to a more modern and compact, purpose-built retirement property can deliver significant savings, through reduced energy bills, lower Council Tax and cheaper maintenance costs. What’s more, new Government research has demonstrated that living in a retirement community results in improvements in happiness, wellbeing and satisfaction.

Care is another area where costs are set to rapidly escalate for some. The Government has decided to scrap the proposal for a cap on care costs, making retirement homes that have care and support available on-site – such as McCarthy Stone’s Retirement Living PLUS offering – an even more attractive option than either care at home or moving to a care home. Paying at least £1,000 a week is now the norm for a care home, while receiving care in a home setting can cost nearly as much. This is out of reach for many. However, for those looking at alternative options, such as one of McCarthy Stone’s Retirement Living PLUS apartments, the average service charge is a fraction of that, at around £9,000 a year for a one-bed apartment. This includes an hour of support a week that can be scaled up to meet the individual’s needs, along with additional services. Service charges at a Retirement Living apartment average £3,000 a year.

McCarthy Stone also offers an entitlements advice service for its 21,500 homeowners and it recommends older people look into other financial support that they may be entitled to such as the Attendance Allowance, which can be worth up to £108 a week, and learning more about the Carers’ Allowance, which can have implications on both the carer and the person they care for. In 2023, McCarthy Stone’s entitlements team helped over 200 customers access a combined £1m in unclaimed benefits.

Helpful resources

To check whether you qualify for Pension Credit online, visit www.gov.ukor call the Pension Credit helpline on 0800 991 234.  You will need details of all your income and savings.  If you are part of a couple, Pension Credit is assessed on joint income and savings.

Other useful resources available to those needing guidance independent advice provided by Age UK. This includes information on funding and entitlements, telephone befriending and in some locations social activities and other services. Age UK has a free helpline: 0800 678 1602.

McCarthy Stone also offers a free entitlements service to anyone buying or renting with them. For more information, call 0800 201 4811.

For further information on Retirement Living and Retirement Living Plus with McCarthy Stone, call 0800 201 4811 or visit www.mccarthystone.co.uk.