Pensioners have been hit hard by the UK’s cost of living crisis as their income is struggling to keep up. Greg Marsh, Founder and CEO of Nous.co spoke exclusively to Express.co.uk about the importance of claiming pension benefits in these difficult financial times.
The government has sought to urge pensioners to apply for pension credits, as many are still not taking them up. According to the government, up to 850,000 people who could be eligible failed to claim a pension loan in fiscal 2019-2020.
Mr Marsh said he was pleased to see the government launch a campaign to raise awareness of pension credit, which has long been underutilized by those who are entitled to it.
He said: “Some estimates suggest that up to a million pensions will go unclaimed, meaning around £1.7billion is on the table.
“And with the difficult times ahead, it is only right that the Government takes every step possible to ensure those entitled receive the support to which they are fully entitled.”
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He assumes that even after these changes come into force, most statutory pensioners will be even worse off than they were a year ago.
The statutory pension will increase by 3.1 percent from April 11, 2022.
However, the current inflation rate is twice as high at 6.2 percent.
Previously, prior to the suspension of the triple lock policy, the state pension had been expected to increase by more than eight percent for the 2022/23 tax year.
Mr Marsh encouraged people to spread the word among their own friends and family as it could cost up to £3,330 per person.
He shed light on the extent of the problems retirees face in relation to their energy bills.
“The energy price cap was just over £1,100 in early 2021. It’s just gone from £1,300 to £2,000,” said Mr Marsh.
“Our forecasts suggest it is likely to rebound to as high as £3,000 in October.
“That means the average UK household will be worse off by more than £150 a month in real terms by the end of the year simply because of energy costs – that’s like cutting your annual salary by around £2,500.
“And that’s only from the domestic energy costs.”
He explained that taking into account rising fuel prices, mortgage payments from higher interest rates, food inflation, train tickets, council taxes and other utilities, households are fighting a pay cut of over £5,000 a year.
Mr Marsh concluded: “In the meantime, every household in the country must do everything possible to ensure that they know what is happening with their finances and that they are getting the best value for all their spending.”