Although Pension Credit offers a vital financial lifeline to older citizens on low incomes, new figures show 32% of eligible households in England, Scotland and Wales are failing to claim what they’re entitled to. This ongoing issue points to a wider problem of access and awareness in the benefits system for pensioners.
Financial Lifeline Overlooked by a Third of Eligible Pensioners
According to the latest report from the DWP, nearly a third of all potentially eligible households missed out on Pension Credit during the 2023–2024 financial year. The benefit, aimed at topping up the income of low-income pensioners, can provide more than £50 per week, depending on individual circumstances. Yet despite this, many do not claim it — either due to lack of awareness or complications in the application process.
The data reveals a clear link between the amount of Pension Credit a household is eligible for and the likelihood of them actually receiving it. Households entitled to over £150 per week had a receipt rate of 86%, whereas those eligible for less than £5 had a much lower take-up rate of just 30%. A key threshold appears to be £15 per week, the point at which the number of receiving households surpasses those eligible but not claiming.
Regional differences were also noted. Scotland saw the highest uptake with 67% of eligible households receiving the credit, followed by Wales (64%) and England (63%). These figures underline a persistent gap in benefit access across the UK, particularly for lower-value claims.
Barriers Rooted in Awareness and Administrative Complexity
Experts believe that the root causes of this under-claiming are both structural and psychological. Philly Ponniah, a Chartered Wealth Manager, stated that many pensioners simply do not realise they qualify, particularly if they own their home or have modest savings. “£50 a week might not sound like much,” she said, “but over a year that’s more than £2,500, enough to ease pressure on essentials or cover rising energy costs.”
Another recurring theme is the perceived difficulty of the application process. Laura Purkess, Personal Finance Expert at Investing Insiders, explained that “The biggest barrier to take-up — despite a huge engagement push — is simply a lack of awareness.” According to her, even when people are aware of the credit, the burden of proving financial eligibility remains a deterrent, especially for older individuals who may feel overwhelmed by paperwork or lack easy access to necessary documents.
The DWP acknowledges the gap and continues to urge pensioners to check if they qualify. Minister for Pensions Torsten Bell highlighted the importance of Pension Credit, not only as a cash supplement but as a gateway benefit to additional support, such as help with housing costs, council tax, heating bills, and even free TV licences for over-75s.
