Pension Credit discount research

Pension Credit discount research

Earlier this year we commissioned research into our Pension Credit discount, and how we can increase uptake for our customers. We thought we would share our findings with you and let you know what changes we will be making.

Adapting to the changes brought about by Covid-19, we conducted two online group discussions with eligible customers who hadn't yet taken up the discount and an online group with charity partner organisations.

Summary of findings:

  • Generally low awareness of discounts and benefits available, including our Pension Credit discount.
  • Evidence of emotional resistance to taking up benefits but when pushed pensioners believe such benefits should be an entitlement or reward for working hard so any shame/embarrassment is wrong.
  • Some resistance to digital channels for dealing with financial matters:
    • Implications for the customer journey
    • Fear of sharing evidence online.
  • Perception that applying for discounts is often a hassle and costly - implications for application form, evidence requirements.
  • When looking at examples of our communications:
    • Name of discount is unlikely to be a strong hook - often don't know they're on Pension Credit
    • 20% figure should be converted into actual £/p bill amount to be more eye-catching.

What have we done:

  • We have renamed the tariff to 'discount for low income pensioners'.
  • Repositioned the wording to show an average saving of around £60 on their bills. 
  • Removed the need for customers to provide their National Insurance number to apply for this tariff.