The Department for Work and Pensions (DWP) is working alongside HM Revenue and Customs (HMRC) to improve the identification of pensioners most likely to qualify for Pension Credit, a move aimed at significantly boosting awareness and access to this underclaimed benefit.
According to reporting by the Manchester Evening News, the initiative is expected to directly address the financial needs of up to 760,000 older individuals who may currently be missing out.
By refining how data is shared and interpreted, the DWP intends to ensure that more pensioners receive an average of £4,300 in annual support during the 2025/26 financial year.
Enhanced Data Sharing to Identify Eligible Households
In response to a parliamentary question from Liberal Democrat MP Wendy Chamberlain, Pensions Minister Torsten Bell confirmed the government’s plan to better utilize data to support older people with low incomes. He stated that the initiative will allow the DWP to target them directly.
Bell added :
HMRC and DWP already have well-established data-sharing processes and procedures, which are governed by the rules on how data can be accessed, shared and used whilst safeguarding individuals’ data and privacy.
The new approach will rely on securely combining existing datasets to flag households that appear eligible for Pension Credit, but have not yet claimed it. An estimated 760,000 pensioners may currently be missing out on the benefit.
How Pension Credit Works
Pension Credit is a financial top-up for older people whose income falls below a certain threshold. From April 2025, it ensures:
- single pensioners receive at least £227.10 per week
- couples receive at least £346.60 per week (combined)
Applicants whose income is slightly above these limits may still qualify for Pension Credit if they have certain additional needs or costs, such as disabilities, caring responsibilities, or housing expenses.
Savings and assets also factor into eligibility. Savings under £10,000 do not affect the calculation. For every £500 above that amount, £1 per week is added to the applicant’s income. For example, someone with £11,000 in savings would have £2 per week added to their assessed income.
A common misconception is that owning a home or having moderate savings makes a pensioner ineligible. In fact, even an award of £1 per week can unlock access to other valuable benefits.
Processing Times and Payment Estimates
The DWP recently reported that 78% of new Pension Credit claims are completed—from application to award decision letter—within 50 working days. A claim made in April could result in a first payment, including up to three months of backdated support, by mid-June.
Claims can be submitted up to four months before reaching State Pension age, and can be backdated for up to three months if the individual was eligible during that period.
To apply, pensioners will need :
- National Insurance number
- Details of income, savings, and investments
- Bank account information (if applying by phone or post)
- For backdated claims: documentation from the desired start date
Applications can be submitted online via GOV.UK if the claimant has already claimed their State Pension and does not have any children or dependents included in the claim.
Alternatively, applications can be made by phone through the Pension Credit helpline at 0800 99 1234, which is open from 8am to 6pm, Monday to Friday. Claimants may also choose to apply by post using a paper application form.
For those unsure of their eligibility, a quick estimate can be obtained using the Pension Credit calculator available on the GOV.UK website.
Support Available if You Qualify
Claiming Pension Credit may entitle older individuals to additional forms of assistance, including :
- Warm Home Discount Scheme
- Winter Fuel Payment
- Pension Age Winter Heating Payment
- Housing Benefit (for renters)
- Support for Mortgage Interest (for homeowners)
- Council Tax Reduction
- NHS support including free dental treatment, eye tests and glasses, and hospital travel costs
- Royal Mail redirection discount for those moving house
- DWP Christmas Bonus
- Free TV licence if aged 75 or over
These benefits can significantly reduce the financial burden faced by older households, particularly those navigating rising living costs.
Approximately 1.4 million pensioners across Great Britain currently receive Pension Credit, but many more remain unaware of their eligibility.
Government officials emphasize that older people—whether single, married, or cohabiting—should not assume they’re excluded based on savings or property ownership.
The DWP’s new data strategy, designed to identify and directly contact potential recipients, could substantially increase benefit uptake and improve financial security for some of the UK’s most vulnerable retirees.
