New data from the Department for Work and Pensions (DWP) has exposed a staggering shortfall in benefit claims, revealing that close to a million pensioner households across the UK are failing to access vital financial support.
Massive Sums Left Unclaimed
Approximately 910,000 families who are eligible for Pension Credit are not applying for it, according to the latest figures. This means an average of £4,300 per household each year is going unclaimed, leaving a colossal £2.5 billion of support untouched in government funds.
The DWP is now intensifying efforts to encourage more people over State Pension age to apply for this income-related top-up in the coming months. The benefit is designed for single pensioners with a weekly income below £227.10, or couples earning less than £346.60 jointly.
The 'Benefits Maze' Leaving Pensioners in the Dark
Stephen Lowe, a retirement specialist at Just Group, underscored the severity of the situation. "The figures show the huge sums of Pension Credit that are going unclaimed by many of the nation's poorest pensioners," he stated. He warned that the complexity of the benefits system is a major barrier, leaving vulnerable people unaware of what they can claim.
"Anyone feeling the squeeze on their finances should check their entitlement to benefits," Lowe advised. "That includes people who have savings or own their own homes, which they think may make them ineligible."
Research indicates a significant knowledge gap, particularly among homeowners. Four in 10 (40%) pensioner homeowners have never checked their eligibility for benefits beyond the State Pension, a rate more than double that of renters (15%).
Breaking Down Barriers to Claiming
Currently, 1.4 million people receive extra help through Pension Credit. The DWP is working to dismantle hurdles and dispel common myths that prevent applications. Many older people incorrectly assume they do not qualify because they own property, have savings, get a small workplace pension, or were previously turned down.
Other reasons for not claiming include not wanting to be seen as needing help, believing it is not worth the effort, or fearing the process is too complicated or burdensome.
You can check your eligibility and get an estimate of what you might receive by using the online Pension Credit calculator on the GOV.UK website. Alternatively, pensioners can call the Pension Credit claim line directly on 0800 99 1234 (Monday to Friday, 8am to 6pm).
Understanding Pension Credit Eligibility
There are two main components to Pension Credit: Guarantee Credit and Savings Credit.
Guarantee Credit is for those who have reached State Pension age (currently 66) and have an income below a minimum threshold. This tops up your weekly income to £227.10 for singles and £346.60 for couples, with potential for more if you are disabled, a carer, or have specific housing costs.
Savings Credit is for those who reached State Pension age before 6 April 2016 and have some modest savings or income above the basic State Pension. It can provide up to £17.30 weekly for a single person or £19.36 for a couple.
Additional Support Available
Successfully claiming Pension Credit acts as a gateway to a range of other valuable support, including:
- Council Tax reductions
- Housing Benefit for renters
- Help with NHS dental treatment, glasses, and travel costs for hospital appointments
- Support with heating costs through the Warm Home Discount Scheme
- A free TV licence for those aged 75 or over
The message from the DWP and experts is clear: checking your eligibility could unlock thousands of pounds in essential support, providing a crucial financial lifeline during retirement.
