The Department for Work and Pensions (DWP) is sending leaflets to 660,000 households across seven UK regions, urging pensioners to check if they qualify for Pension Credit, which is worth an average of £4,500 a year.
Statistics show approximately 1.4 million pensioner households already receive Pension Credit. Last year, the DWP recorded an additional 33,500 applications following its largest-ever Pension Credit awareness initiative.
Campaign targets seven regions
Leaflets will be distributed to addresses in Glasgow, Powys, Stockton-on-Tees, inland Cornwall, Birmingham, East Suffolk and Manchester — regions where the DWP indicates there are significant numbers of low-income pensioners. However, the money is available to all pensioners who meet the criteria, not just in these seven targeted areas.
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."
Millions missing out on support
Morgan Vine, Director of Policy and Influencing at Independent Age, which carried out the research, 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."
Homeowners and savers may still qualify
Finance experts are urging people not to presume they won't be eligible, as some incorrectly believe they won't receive support due to savings or other factors such as being homeowners. Joe Lytwyn, Personal Finance Expert at thimbl.com, has urged pensioners and their relatives to examine their individual situations.
He explained: "DWP has launched a new awareness campaign, highlighting that Pension Credit is worth more than £4,500 a year on average. That is not a guaranteed payment, as individual entitlement depends on someone's circumstances."
He added: "Independent Age's analysis found that more than a million eligible older people missed out on a combined £2.5 billion in 2023/24. For someone managing a tight retirement budget, checking could identify valuable support with everyday costs."
Joe clarifies that being a homeowner, having savings, or receiving the State Pension doesn't necessarily prevent a pensioner from receiving assistance. He stated: "Owning your home or having savings does not automatically rule you out, and Pension Credit is separate from the State Pension."
He added: "Savings and investments of £10,000 or less do not affect Pension Credit. Above that amount, savings are taken into account, but you may still qualify. Your State Pension and other pension income generally count towards the assessment. The important thing is to check your individual circumstances rather than assume you are ineligible."
Additional benefits and how to claim
Receiving Pension Credit may also provide access to other forms of assistance, depending on personal circumstances. Joe explained: "Depending on your circumstances, receiving Pension Credit could also open the door to help with housing costs, Council Tax, and heating bills."
He added: "People aged 75 or over may qualify for a free TV licence, while those receiving the Guarantee Credit element of Pension Credit may qualify for help with NHS dental treatment and glasses. Each scheme has its own conditions, but even a small Pension Credit award could be worth checking."
For pensioners and households wishing to verify eligibility, Joe advised: "Start with the official eligibility guidance and Pension Credit calculator. A trusted family member could help gather details of income, pensions, savings and investments."
He added: "Applications can be made online, by telephone or by post. The claim line is 0800 99 1234, Monday to Friday, 8am to 6pm."
Pension Credit is accessible to anyone on a low income who satisfies the criteria, resides in England, Scotland or Wales and has reached State Pension age. When applying, your income is assessed; if you have a partner, your income is assessed jointly.
Pension Credit tops up your weekly income to £238 if you’re single, or your joint weekly income to £363.25 if you have a partner. If your income is higher, you might still be eligible if you have a disability, you care for someone, you have savings or you have housing costs.
While State Pension, other pensions, earnings and most social security benefits do count towards income, some are not included, such as Adult Disability Payment, Attendance Allowance, Child Benefit, Christmas Bonus, Council Tax Reduction, Disability Living Allowance, Housing Benefit, Pension Age Disability Payment, Personal Independence Payment, Scottish Adult Disability Living Allowance, and social fund payments like Winter Fuel Payment.
Joe added: "You do not need to wait for a campaign leaflet. Claims can be backdated by up to three months if you were eligible during that period, so checking promptly could help prevent missed payments."
