The Department for Work and Pensions (DWP) has revealed that up to one million pensioner families are missing out on an average of £4,300 per year in unclaimed Pension Credit. New data shows that approximately 910,000 eligible families did not claim the benefit, leaving up to £2.5 billion unclaimed. The DWP is intensifying efforts to boost take-up of the income-related benefit ahead of winter.
Pension Credit provides a top-up for single people on the New State Pension with a weekly income below £227.10, or couples with combined income under £346.60. Successful claimants may also qualify for additional support, including help with housing costs, Council Tax bills, and the £150 Warm Home Discount. Currently, 1.4 million people receive Pension Credit, including over 125,000 in Scotland.
Stephen Lowe, director at retirement specialist Just Group, commented: “The figures show the huge sums of Pension Credit that are going unclaimed by many of the nation's poorest pensioners, who are missing out on thousands of pounds a year of valuable extra income.” He added that many pensioners mistakenly believe savings or home ownership disqualify them, noting that 40% of over-65 homeowners had never checked eligibility for state benefits beyond the State Pension.
The DWP is busting common myths that deter claimants, such as the belief that savings or part-ownership of a home preclude eligibility. Pensioners can check their entitlement using the online Pension Credit calculator on GOV.UK or by calling the Pension Credit helpline at 0800 99 1234 (Monday to Friday, 8am to 6pm).
To qualify for Guarantee Pension Credit, applicants must be State Pension age (66) and have a weekly income below the minimum living standard set by the government. The exact amount depends on income and savings, with assumed income from savings over £10,000. Mixed-age couples—where one partner is under State Pension age—are now treated as working-age and cannot claim Pension Credit until both reach pension age.
