In this engaging discussion, Emma Smith, a Money Box reporter, and Devon Ghilani from Policy in Practice delve into the government's push to increase pension credit awareness among seniors. They highlight the financial benefits it brings, including winter fuel payments. Dan Whitworth sheds light on council tax debt, critiquing aggressive collection practices. The episode also explores why many renters forgo insurance despite the risks of losing their belongings, offering valuable insights into affordable options to protect their finances.
The government is reaching out to over 120,000 pensioners to claim pension credit, linking it to crucial winter fuel payments.
A leading debt charity calls for reform in council tax debt collection practices to alleviate unnecessary stress on struggling individuals.
Deep dives
Encouraging Pension Credit Claims
The government is initiating a campaign to encourage over 100,000 pensioners, aged 66 and above, to claim the means-tested benefit known as pension credit. This initiative builds upon a previous trial where a small percentage of pensioners who received letters successfully applied for the benefit. The connection between pension credit and the winter fuel payment, which provides an additional £200 to £300, emphasizes the importance of this initiative, especially as over half a million pensioners may still be missing out. The Department for Work and Pensions is also mobilizing additional staff to process the expected influx of claims, further highlighting the significance of accessing these financial resources.
Issues with Council Tax Debt Recovery
The debt charity Step Change warns that councils in England and Wales are potentially harming individuals in council tax arrears through aggressive debt recovery practices. Many people struggling with council tax debt already face financial difficulties, exacerbating their stress and overall well-being. While some local authorities may practice compassion in debt collection, there is little consistency across the sector, resulting in a patchwork of policies that often lead to unfair treatment. The charity recommends a reevaluation of these practices, suggesting that excessive pressure to collect debts can lead to deeper financial issues for individuals, including increased health problems.
The Importance of Contents Insurance for Renters
A significant number of renters, approximately 45%, lack contents insurance, leaving them vulnerable to high costs if their possessions are damaged or lost. The reasons for this gap include financial strain and the transient nature of renting, which can discourage long-term insurance contracts. Personal accounts illustrate the emotional toll and financial strain experienced when tenants lose belongings without insurance, often resulting in a substantial financial burden to replace lost items. Experts suggest improving awareness and accessibility of affordable insurance options for tenants, which could mitigate the risks associated with being uninsured.
The Government is writing to 120,000 people aged 66 or more encouraging them to claim the means-tested benefit pension credit, which will also entitle them to the winter fuel payment. The letters will go out from next month to people the Department for Work and Pensions has identified as likely to be entitled following a targeted trial scheme last year.
Also on the programme, a leading debt charity calls for the way council tax debt is collected to be reformed, and why do millions of renters not insure their belongings?
Presenter: Paul Lewis
Reporters: Dan Whitworth and Emma Smith
Researcher: Jo Krasner
Editor: Sarah Rogers
(First broadcast 12pm Saturday 12th October 2024)
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