Nearly one million state pensioners in the UK are failing to claim Pension Credit, a benefit worth up to £4,524 per year, according to Department for Work and Pensions (DWP) figures. The benefit is designed to boost the income of older retirees who earn less than the new state pension.
DWP data shows that between February 2025 and February 2026, only 209,735 applications were received, a 36% decline from the previous year's 327,330. This means approximately 910,000 eligible households are not claiming, leaving up to £2.5 billion unclaimed. The average weekly payment for recipients is £87, totalling £4,524 annually.
Eligibility criteria state that single pensioners with weekly income below £227.10 (roughly £11,800 yearly) qualify, while couples with joint weekly income under £346.60 (about £18,000 per year) are eligible. These thresholds are expected to rise from April.
David Brooks, head of policy at Broadstone, commented: "The DWP research shines a light on many of the attitudinal and awareness issues that have plagued Pension Credit take-up, with entitled pensioners still lacking a clear understanding of eligibility requirements and the application process." He added that many pensioners wrongly assume homeownership or savings disqualify them.
Applications can be made online via the government website, by phone on 0800 99 1234, or by post. Backdating is limited to three months after reaching state pension age.
