Pension top-up scheme a shambles

THE launch of the new Pension Credit turned into a fiasco on Monday as switchboard operators were forced to confess they could not accept applications over the phone.

The Government has told pensioners that applying for the credit - designed to give a cash top-up to 5m over-sixties on low incomes - will involve a 20 to 30-minute call to a free number.

But many calling the special hotlines yesterday were told the computers had crashed.

Switchboard operators offered to post an information leaflet and application form instead. One operator at a Yorkshire-based call centre said: 'Because of the high number of calls, our computer system has shut down. It's been down for most of the day.'

Another said: 'We've had 24,000 calls today and we've been told not to take applications over the phone. Try calling later in the week when it has cooled down.'

The difficulties threaten a repeat of the chaos which engulfed the launch of Child Tax Credit and Working Tax Credit in April.

On that occasion 1.7m calls to the Inland Revenue helpline went unanswered and more than 800,000 families failed to receive payments on time.

The Department-for Work and Pensions was determined to avoid a similar farce and made up to 1,500 lines available in four call centres yesterday.

The idea was that pensioners could have their application filled in by an operator. But while there was no wait to have the phone answered, the operators were helpless when it came to filling in the forms.

Some blamed blank computer screens while others said they had been told filling in the forms would take too long.

The Pension Credit has been plagued with difficulties since Chancellor Gordon Brown announced it in November 2000. In his pre-Budget speech he said the system would be introduced six months ago.

Applicants who called the helplines over the spring and summer were often met with bemused operators who had never heard of it and incorrectly told people they were not eligible.

And the department admitted yesterday that only 400,000 new claimants had been processed and would receive money this week. A further 1.8m had been transferred from the old minimum income guarantee. This leaves 2.8m eligible pensioners who have not yet received a penny.

The Government is supposed to be writing to pensioners it believes may be eligible for the credit. But so far only half have been contacted and some will not receive letters until next June.

There have also been criticisms of its target for just three-quarters of eligible pensioners to be receiving the credit by 2005.

Who gets what

THE Pension Credit promises to top up incomes for the poorest people aged 60-plus to a minimum £102.80 a week for singles and £155.80 a week for couples.

THOSE aged over 65 with modest savings and private pensions may receive further top-ups of up to £14.79 a week for singles and £19.20 for couples.

BUT the credit is means-tested and is phased out for the better off. Single people with more than £139 a week and couples with over £203 get nothing.

MONEY is paid into a bank or post office account, or by giro cheque.

TO apply, call free on 0800 99 -1234. Those with speech or hearing problems can use the textphone number 0800 169 0133.