Select Committee on Public Accounts Twenty-Sixth Report


Conclusions and recommendations


1.  The Department has increased the number of people claiming Pension Credit to one million more than claimed the Minimum Income Guarantee, but its PSA target did not address the Department's wider aim of providing pensioners with access to all the benefits and services to which they are entitled. The Department published baseline indicators of the independence and well-being of older people in October 2006. It should use these indicators as a basis for devising a wider poverty reduction target for The Pension Service in the same way as the Government devised its target for reducing child poverty.

2.  The Pension Service shares its objective of increasing older people's well-being with primary health and housing providers, but does not co-ordinate its approach sufficiently with these bodies. To achieve their own objectives of improving the quality of life of vulnerable older people, Primary Care Trusts need to work with the other key local agencies such as social housing providers and local authorities as well as The Pension Service so that older people have a single access point to the range of services. Despite some recent progress, The Pension Service has found it easier to develop local joint working than to reach national agreements. The Department should explore the scope for a shared target on pensioners' well-being, encompassing health and income.

3.  The Department does not have sufficient information about pensioners' individual circumstances to identify all their benefit entitlements. Since we last reported, The Pension Service's use of data matching and sharing information between agencies has improved, but it does not include people outside of the benefits system. Reaching these people will require different approaches including outreach through trusted service providers and local voluntary groups, as well as more co-operation with health professionals. The best strategy will vary between areas and the Department should encourage discretion to develop imaginative ideas which fit local needs.

4.  Take-up of Housing Benefit and Council Tax Benefit, administered by local authorities, has declined in recent years despite The Pension Service providing pensioners with a full benefit entitlement check. The performance of local authorities in managing the benefits and in providing information and advice are likely causes of local variability in take-up. The Department should investigate how these factors impact on take-up of Housing and Council Tax benefits, and identify best practice which can raise the level of service to customers in areas of poor performance.

5.  The complexity of the eligibility assessment for disability benefits makes it difficult to measure take-up rates, and the Department has no targets for its take-up. In our report on Dealing with the complexity of the benefits system we recommended a number of actions to reverse the increasing complexity of the benefits system.[4] The Department has commissioned research into the feasibility of measuring Attendance Allowance take-up and exploring the reasons for non-take-up. The Disability and Carers Service should use the findings to set a target take-up level at least comparable with that of Pension Credit.

6.  The processes for claiming pensioner benefits have been simplified but still involve a number of stages which require customers to understand complex links between disability and income-related benefits. The Department needs to allow customers to claim linked benefits through one, single transaction by:

  • removing the need for written documents in addition to telephone applications;
  • linking disability benefit claims automatically to related entitlements when systems permit; and
  • replacing repeat notifications of entitlement to linked benefits with a single explanation of the customer's entitlements.

7.  The geographical pattern of take-up shows that older pensioners, pensioners from ethnic minorities and from more affluent areas are less likely to claim Pension Credit. There are different approaches to encouraging take-up and different activities across the country, but only limited awareness of what works best. More can be achieved by sharing good practice, encouraging innovative practices and focusing on the areas with lower take-up. The Department should publicise the good practice identified by the National Audit Office and the evaluation of the Partnership Fund to all local authorities and alternative offices.

8.  Pensioners in rural areas are also less likely to claim benefits. Home visits by the Local Service play a part in securing access to benefits, but the evidence indicates that take-up is still lower in rural areas. Where there are fewer other service providers for The Pension Service to work with, it needs to take advantage of the service outlets which remain. Notwithstanding post office closures, the Department should use the remaining post offices as Alternative Offices and as sources of advice and information to encourage take-up and access to wider services.



4   Committee of Public Accounts, Thirty-sixth Report of Session 2005-06, Tackling the complexity of the benefits system, HC 765 Back


 
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