Pension Credit is one of the most underclaimed benefits provided by the Department for Work and Pensions (DWP), designed to give extra financial help to those above state pension age who are struggling with rising living costs.
Despite its importance, recent statistics show a decline in claims, highlighting the urgent need for clearer communication and easier access for eligible households.
Drop in Pension Credit Applications
Last year, changes to the Winter Fuel Payment eligibility boosted awareness, leading thousands of pensioners to make successful claims. However, new figures reveal a 16% decrease in applications compared to the previous year.
Experts warn that delaying claims could cost households dearly, as eligible pensioners may be entitled to up to £4,300 annually.
Expert Concerns About Underclaimed Benefits
Lisa Picardo, Chief Business Officer UK at PensionBee, emphasized that around 700,000 pensioner households are still not claiming their entitlement.
The Work and Pensions Committee estimates that unclaimed Pension Credit could be worth as much as £4,000 per household per year.
She explained:
- Pension Credit is more than just additional income—it also opens doors to cost of living payments, council tax reductions, free TV licences for those over 75, and the Winter Fuel Payment.
- For over a decade, take-up rates have remained low, between 61% and 66%, underscoring the need for simpler processes and a stronger national strategy.
Pension Credit Breakdown: How Much Can You Claim?
The amount you receive depends on your circumstances.
| Category | Weekly Amount (Guarantee Credit) | Savings Credit (if eligible) |
|---|---|---|
| Single Person | Up to £227.10 | Up to £17.30 |
| Couple | Up to £346.60 | Up to £19.36 |
- The Guarantee Credit tops up weekly income for low-income pensioners.
- The Savings Credit rewards those who reached pension age before 6 April 2016 and saved for retirement through pensions or investments.
Additional Payments Available
Beyond standard rates, extra payments are available for carers, disabled pensioners, and those raising children:
- Severe Disability Supplement: Up to £82.90 weekly if you receive certain disability benefits.
- Carers: Extra £46.40 weekly if claiming Carer’s Allowance or Carer Support Payment.
- Child Supplement: £67.42 weekly per child under 16, rising to £78.10 for the first child if born before 6 April 2017.
Why Many Pensioners Miss Out
Despite the financial help on offer, eligibility is means-tested, meaning income, savings, and investments are assessed. Many pensioners either remain unaware of their entitlement or find the application process too complex, resulting in thousands missing out on support.
Pension Credit is a lifeline for many older people, yet far too many eligible households are not receiving it. With applications dropping by 16% this year, experts stress the importance of raising awareness and simplifying the process to prevent pensioners from slipping into poverty.
Claiming Pension Credit not only boosts income but also provides access to a wide range of additional benefits that ease the burden of rising living costs. Pensioners should act quickly to secure the financial support they are entitled to.
FAQs
Anyone over the state pension age on a low income may qualify, depending on their earnings, savings, and household circumstances.
Yes, receiving Pension Credit can also unlock council tax reductions, housing benefits, winter fuel payments, and a free TV licence if you are over 75.
Single pensioners can get their income topped up to £227.10 weekly, while couples can receive up to £346.60, with additional savings and disability-related supplements available.
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