How data has made London’s pensioners better off by over £19 million

The Mayor of London commissioned Policy in Practice to run a data led campaign to help older Londoners receive unclaimed Pension Credit.

The campaign, supported by Age UK and Age UK London, has reached over 37,825 Londoners across 26 boroughs, inviting them to claim benefits through personalised letters.

To date over 4,500 pensioners are better off by nearly £4,155 a year, on average. In addition to this, all were able to claim Winter Fuel Payment, worth up to £300 per household. Since the campaign began in February 2023, support worth more than £19 million a year has been unlocked across the capital.

The support that pensioners will continue to get each year from now on puts the lifetime impact of the campaign at over £220 million.

This project has also helped households to avoid loneliness, repay debts and link in with housing teams, where needed. By offering support from their local council and local Age UK service, the targeted households have been introduced to a trusted partner they can contact directly if they ever need any support.

Challenge: One in eight London pensioners in persistent poverty

In 2021 London’s population stood at 8.8 million, over 2 million of whom were pensioners. Almost one in four London pensioners were in poverty, with one in eight classed as living in persistent poverty.

Tackling this has been a key priority for the Greater London Authority (GLA). They commissioned Policy in Practice, with support from Age UK London, national Age UK and London Councils, to launch a data led campaign to target pensioners eligible for, but not claiming, Pension Credit.

Pension Credit is one of the most underclaimed benefits and over £438 million is estimated to be unclaimed in London. About a third of eligible pensioners are missing out on a top up to their monthly income as well as help with other costs like heating, housing costs, council tax, NHS dental care and a free TV licence for over 75s.

There are three main reasons why people don’t access the support they’re eligible for. Firstly, awareness, people don’t know they’re eligible. Then administrative complexity, people don’t know how to claim or they don’t have the support around them that they need to complete an application, and stigma. Many pensioners we have helped didn’t want their neighbours or families knowing they needed the support.

Solution: Greater London Authority commissioned Policy in Practice to run a data led targeted Pension Credit take up campaign

Policy in Practice contacted all London boroughs and invited them to take part in the campaign in late 2022. 

Using its Low Income Family Tracker (LIFT) platform over the last two years, Policy in Practice have analysed administrative datasets from 26 London boroughs to identify eligible households who weren’t yet claiming the support.

As well as working directly with each London Borough to securely transfer the data, Policy in Practice tailored letters for each borough to reflect the different response mechanisms in place.

With support from Age UK, Age UK London and Independent Age in place, Policy in Practice sent more than 68,000 tailored letters to older people across the boroughs who were eligible for Pension Credit but not yet claiming. 

As of December 2024 the Mayor has funded the campaign to enter its third phase to encourage pensioners who still haven’t claimed to get the support before changes to Winter Fuel Payment eligibility. 

London’s Pension Credit take up campaign impact

Phase 2

Phase two ran from February to October 2024.

• £9.5 million in Pension Credit secured for 2,174 households across 23 London boroughs
• An average of £4,394 per person claimed by each household, on average 
• Nearly £2 million in backdated Pension Credit for those eligible has been claimed
• £434,800 in Winter Fuel Payment secured to Pension Credit claimants

The Mayor of London, Sadiq Khan, said:

Many older households in London are disproportionately affected by cost-of-living pressures so I am delighted that thanks to our campaign they have claimed over £17m in Pension Credit.

I’m pleased to be extending the scheme for a further year, helping to reach even more households across the capital that are eligible to receive Pension Credit. As Mayor, I will continue to stand up for all Londoners and do all I can to help them with cost-of-living pressures, building a better and fairer London for everyone.

Deven Ghelani, Founder and Director of Policy in Practice, said:

We are delighted to see this campaign’s continued success, which has helped put an additional £9 million into the pockets of Londoners  in the past year after already securing over £8 million in the previous year. It’s great news that more pensioners are getting the financial support they need. The increased income for some of London’s poorest elderly citizens, worth over £4,000, can have wider benefits, providing much needed relief this winter, opening access to additional support such as Warm Home Discounts and free TV licence. 

We fully support the Mayor’s decision to extend the campaign, boosting incomes ahead of changes to Winter Fuel Payment eligibility. The results achieved in the capital are easily replicable across the country and we encourage local authorities to get in touch to see how they can follow suit.

John McGeachy, Campaigns Manager at Age UK London, said:

Sadly, it is often the case that those people who would most benefit from certain information, are the last to hear about it. This is certainly true when it comes to Pension Credit and sadly London has some of the lowest Pension Credit uptake rates in the country. That’s why this campaign is so important, and we’re delighted that it has been so effective so far. London has the highest poverty rate for people of pension age in the UK and having such a targeted campaign has never mattered more than it does now.

Cllr Anthony Okereke, London Councils’ Executive member for Communities, said:

Pension Credit is an important source of financial support for older Londoners on low incomes. That’s why it is fantastic to have the majority of London boroughs participating in this campaign with the Mayor of London, and we welcome its extension for another year. 

By drawing on our strong relationships with communities and local voluntary sector organisations across the capital, London boroughs have helped make this campaign a success and increase the uptake of Pension Credit among our residents. This has meant more money in people’s pockets during the cost-of-living crisis and will ensure continued access to the Winter Fuel Allowance for those who need it most.

Phase 1 Impact: £8.3 million in Pension Credit secured for over 2,300 households

In phase one, which ran from February to June 2023, over £8.3 million Pension Credit was secured in annual income, £2 million in one off backdated Pension Credit and £1.9 million in Cost of Living Payments.

Since the launch of the campaign in February 2023, over 2,300 pensioner households in London have benefited from often life changing increases in support. So far:

• Over £3,800 has been claimed by each household, on average
• Over £8.3 million in Pension Credit has been claimed across 17 London boroughs
• Nearly £2 million in backdated Pension Credit for those eligible has been claimed
• An extra £1.9 million has been distributed via the £900 Cost of Living payments to eligible households
• Councils are expected to save over £1.5 million in social care costs 

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