The WFA needed to be means tested out of the hands of wealthy pensioners. £218.15 a week as a single pensioner is the threshold for pension credit. In what world is that wealthy ?
Rachel Reeves’ ministerial salary is circa £150,000 pa. She, as chancellor, more than anyone, knows the difference between rich and poor but still chose the lazy option of aligning the WFA with pension credit, and she’s fully aware of the effect it will have on those just above the threshold. If all pensioners who are entitled take up pension credit, that will not only wipe out the savings from means testing, but will add more to the benefits bill. Spectacular unintended consequences.
And that £23bn isn’t pensioner entitlement alone. It’s the total amount of benefits which go unclaimed each year, including working age benefits. £2.2bn is the 2024 figure for unclaimed pension credit, which has a knock on effect on other associated benefits, including £5bn of unclaimed benefits administered a local authority level.