The Department for Work and Pensions (DWP) has revealed that hundreds of thousands of pensioners are missing out on Pension Credit, a valuable benefit worth an average of £4,300 annually. This tax-free, means‑tested payment is designed to boost the income of older people with limited resources and unlock access to a range of additional financial support, yet up to 760,000 eligible pensioners are not claiming it.
| Detail | Information |
|---|---|
| Benefit Name | Pension Credit |
| Annual Average Value | £4,300 |
| Components | Guarantee Credit & Savings Credit |
| Target Group | Low-income pensioners in the UK |
| Extra Support Unlocked | Winter Fuel Payment, Council Tax help, free TV licence (75+), housing cost support |
| Claim Methods | Online, by phone, or by post |
| Application Backdating | Up to 3 months |
| Savings Rule | Savings under £10,000 ignored in eligibility assessment |
What Pension Credit Offers and Who Can Claim
Pension Credit comes in two parts:
- Guarantee Credit – tops up weekly income to £227.10 for singles or £346.60 for couples.
- Savings Credit – provides additional funds for those who reached State Pension age before 6 April 2016 and who have modest savings or pensions.
Owning a home or having savings does not automatically disqualify you. Savings under £10,000 are not counted, and many homeowners still qualify.
Rising Uptake but Many Still Missing Out
Public awareness campaigns have boosted applications. Between mid‑2024 and early 2025, there were over 117,800 successful new awards, a 64% increase compared to the previous year. Around 300,000 pensioners applied during that period, with the updated, simplified application process taking just 16 minutes to complete on average.
The Value Beyond the £4,300 Top-Up
Claiming Pension Credit can also unlock a range of additional benefits:
- Winter Fuel Payment – important for covering heating costs.
- Free TV licence – for those aged 75 and above.
- Housing and Council Tax assistance – through discounts or direct support.
Even a claim worth £1 a week can open the door to these extra entitlements, offering a significant boost to financial security.
Why People Are Not Claiming
Many pensioners miss out due to:
- Misunderstanding rules – believing home ownership or savings block eligibility.
- Assuming the payment is too small – overlooking the reality of an average £4,300 annual boost.
- Practical or emotional barriers – such as pride, fear, or the belief the process is complex.
How to Check and Apply
Pensioners can use the Pension Credit calculator on the GOV.UK website to check eligibility quickly. Applications can be submitted:
- Online – via the official government portal.
- By phone – through the Pension Credit helpline.
- By post – with a completed application form.
Claims can be backdated by up to three months, ensuring no eligible pensioner misses previous entitlement. Free help is available from advice organisations such as Citizens Advice or Age UK.