Hundreds of thousands of pensioners across the UK may be entitled to Pension Credit without realising it. The benefit can increase income and unlock extra financial support, with the average claim worth around £4,300 a year.
The Department for Work and Pensions has urged older people to check their eligibility, warning that many pensioners wrongly assume they do not qualify because they own a home or have savings.
Pension Credit is aimed at people over State Pension age who are living on a low income. According to the Department for Work and Pensions (DWP), around 910,000 pensioner households are currently eligible for the benefit but are not claiming it. The payment is designed to top up weekly income to a guaranteed minimum level. It can also provide access to further support, including help with housing costs, council tax reductions and free TV licences for people aged 75 or over.
Pension Credit Eligibility Depends on Income and Personal Circumstances
There are two elements within Pension Credit: Guarantee Credit and Savings Credit. Guarantee Credit increases a claimant’s income if it falls below a set level, while Savings Credit offers extra payments to some pensioners who saved money for retirement.
Savings Credit is only available to people who reached State Pension age before April 2016. According to the Government guidance referenced by the DWP, eligibility for both forms of support depends on income, savings and personal circumstances.
These circumstances may include whether a person lives alone or with a partner, whether they have caring responsibilities, a disability, or housing-related costs such as rent and service charges.
The DWP said many people still mistakenly believe they cannot claim Pension Credit if they have savings or own their property. Officials stressed this is not always the case and urged pensioners to check before assuming they are ineligible. People can use the Government’s online Pension Credit calculator to assess whether they may qualify. The process only takes a few minutes, according to the DWP.
Government Urges Communities and Services to Raise Awareness
Officials said reaching people who may qualify remains a challenge, particularly because many older people are unaware of the support available to them.
According to the DWP, trusted community figures can play a role in helping spread awareness about Pension Credit. The department highlighted GPs, pharmacists, local council staff, home care workers and Post Office employees as people who may help identify those missing out on support.
Friends and relatives are also being encouraged to speak to older family members who may be eligible. Minister for Pensions Torsten Bell said the Government wanted to support pensioners struggling with living costs and encouraged people to check entitlement.
“We’re committed to supporting harder-up pensioners however we can,” he said. “Pension Credit is a simple way to give those who need it the most some extra support with bills or a free TV licence.” He added: “I’d urge anyone who thinks they, or anyone they know, might be able to claim Pension Credit, to take a few minutes out of their day to check and apply. This country’s pensioners deserve every penny they are entitled to.”
The DWP continues to encourage pensioners and their families to review eligibility, particularly as a significant number of households may still be missing out on financial support already available through the system.
