New figures from the Department for Work and Pensions (DWP) show that up to 900,000 eligible households are missing out on Pension Credit, a means-tested benefit worth an average of around £4,500 a year. The benefit is available to people over State Pension age on a low income and can also provide access to additional help with housing costs, Council Tax and heating bills.
£2.4 Billion Left Unclaimed
The DWP figures, published this week, reveal that up to £2.4 billion in Pension Credit went unclaimed during the 2024/25 financial year. The latest statistics estimate that just 62 per cent of eligible households received the benefit, unchanged from the previous year, despite a major campaign to encourage more pensioners to apply.
The DWP estimates that households missing out could have received an average of around £2,500 over the year.
Experts Call for Action
David Brooks, Head of Policy at independent financial services consultancy Broadstone, said: “Despite years of awareness campaigns and continued cost-of-living pressures, nearly a million families eligible for Pension Credit are still missing out on support worth an average of £2,500 a year.
“Research suggests this is not simply a question of people choosing not to claim. Many pensioners do not realise they are entitled to Pension Credit, while others are put off by the complexity of the process or by the lingering stigma that can surround means-tested benefits.”
He added: “At a time when much attention is focused on the Triple Lock and pension adequacy, there is something fundamentally wrong with a system where so many pensioners miss out on assistance specifically designed for those most in need.”
Independent Age Chief Executive Joanna Elson CBE said the latest figures were particularly concerning given the increased awareness of Pension Credit following changes to Winter Fuel Payments.
She said: “It’s deeply worrying that so many older people on low incomes who are entitled to Pension Credit are still missing out.
“Even with a spike in national awareness in 2024/25 after Keir Starmer’s Government announced only those receiving Pension Credit would qualify for the Winter Fuel Payment, the latest UK Government data shows no change in the proportion of older people receiving the entitlement.”
She added: “Every day we hear from older people on low incomes who are making heartbreaking decisions on what to cut to keep their costs down - from only heating one room or sleeping in their winter clothes, to skipping showers and buying the cheapest food available. For many of them a Pension Credit boost could transform their lives.”
Who Can Claim Pension Credit?
Pension Credit is available to people who have reached State Pension age and are on a low income. It is separate from the State Pension and can be claimed even if someone owns their home or has savings.
Guarantee Credit tops up weekly income to a minimum of £238.00 for single pensioners and £363.25 for couples, although some people may qualify for more depending on their circumstances.
Savings Credit may also be available to people who reached State Pension age before April 6, 2016, and have made some provision for retirement. Savings Credit can give you up to £17.96 a week for a single person and £20.10 a week for a couple (married, in a civil partnership or cohabiting).
The exact amount you’ll get depends on your income and savings. Your income includes assumed income from savings and capital over £10,000. People can check their potential entitlement using the free Pension Credit calculator on GOV.UK.
Additional Help Available
Even a small award of Pension Credit can provide access to other financial support, depending on individual circumstances. This can include help with housing costs, Council Tax Reduction, NHS costs and a free TV Licence for people aged 75 or over.
Pension Credit can also provide access to the £150 Warm Home Discount for eligible households. In Scotland, Pension Credit can help establish entitlement to Pension Age Winter Heating Payment, subject to the relevant eligibility rules.
People can apply for Pension Credit up to four months before reaching State Pension age, and claims can usually be backdated by up to three months if they met the eligibility conditions during that period. Applications can be made online through GOV.UK, or by calling the Pension Credit claim line on 0800 99 1234.
Independent Age is also calling for changes to improve take-up, including a simpler application process and a wider strategy to ensure older people receive all the financial support they are entitled to. Joanna Elson said: “The UK Government needs a different approach. It should implement an all-entitlement take-up strategy that ensures older people on low incomes receive all the money that has been set aside for them.”
