The Department for Work and Pensions (DWP) is urging eligible single state pensioners living alone on a low income to claim Pension Credit, which can top up weekly income to £238 in the 2026 to 2027 tax year.
Those entitled to the full amount could receive up to £12,376 per year from the DWP, on top of their State Pension. Pension Credit is a separate benefit paid in addition to the State Pension and is available to pensioners in England, Scotland and Wales.
The exact amount varies depending on individual circumstances, as Pension Credit is a top-up to weekly income. According to the DWP, the benefit is worth more than £4,500 per year on average and provides help with everyday living costs.
Letters sent to 660,000 households
The DWP is sending letters to 660,000 pensioner households from October in a bid to boost Pension Credit uptake. The letters target seven areas of the UK with a high proportion of low-income pensioners: Glasgow, Powys, Stockton-on-Tees, inland Cornwall, Birmingham, East Suffolk and Manchester.
Minister for Pensions Torsten Bell said: "Far too many pensioners are missing out on support they’re entitled to. Pension Credit is worth more than £4,500 a year on average and can make a real difference to people’s finances, while also opening the door to help with bills and other everyday costs."
He added: "If you think you might be eligible, it’s worth checking. We want to make sure pensioners get the support they’re entitled to and don’t miss out on money that could help them in retirement."
Additional benefits and how to apply
Pension Credit can be claimed even if you have other income, savings or own your own home. The benefit also unlocks access to other financial perks, including help with housing costs, a council tax reduction, free TV licences and help with NHS treatment costs.
When applying, your income is calculated, including your State Pension, other pensions, earnings from employment and self-employment, and most social security benefits. You can use the DWP’s Pension Credit calculator for an estimate and start your application up to four months before reaching State Pension age.
Applications can be made any time after reaching State Pension age, but can only be backdated by three months, meaning you’ll get up to three months of Pension Credit in your first payment if eligible during that time.
Around 1.4 million pensioner households already benefit from Pension Credit. Last year, the DWP saw an extra 33,500 applications following its biggest ever Pension Credit awareness campaign. A new drive launched this month aims to ensure eligible pensioners don’t miss out.
Morgan Vine, Director of Policy and Influencing at Independent Age, said: "Our analysis found that in 2023/4 more than a million older people on low incomes who are eligible for Pension Credit did not receive it, missing out on a combined £2.5 billion of life-changing support."
She added: "Every day we hear heartbreaking stories of older people enduring financial hardship because they aren’t aware of Pension Credit, or that they qualify for the support. We welcome the DWP’s commitment to raising awareness and understanding of Pension Credit and look forward to continuing to play our part to tackle the issue of low take-up."
