Millions of state pensioners across the UK could be missing out on thousands of pounds in additional financial support, simply because they are unaware of their eligibility. Those who retired under the older state pension system receive significantly less than those on the newer scheme, leaving many struggling to cover everyday expenses. However, a government benefit known as Pension Credit could help bridge this gap, providing a much-needed boost to their income.
By making a simple claim, eligible pensioners could increase their annual income by nearly £3,000, easing the financial pressures that many face in retirement. In addition to this top-up, claimants may also gain access to further financial benefits, including help with heating bills and even a free TV licence. Despite these advantages, thousands of pensioners are still missing out on this vital support, often because they do not realise they qualify.
Who Is Eligible for the Pension Boost?
The UK’s state pension system was restructured in 2016, creating a disparity between pensioners who retired before and after the reform. Those who reached retirement age before April 6, 2016, are on the basic state pension, which pays £169.50 per week—equivalent to £8,814 per year. In contrast, pensioners who retired after this date receive the new state pension, which is significantly higher at £221.20 per week, or £11,502 per year.
Men born before April 6, 1951, and women born before April 6, 1953, are automatically placed on the lower basic state pension. Unlike their younger counterparts, these pensioners cannot transfer to the new system, leaving them with a lower income in retirement. However, Pension Credit is available to help bridge this gap. Those who qualify could see their weekly income increase to £218 per week, bringing their total annual pension to £11,336—almost matching the new state pension amount.
How Pension Credit Increases Payments
Pension Credit is a means-tested benefit designed to top up the income of pensioners who are on a lower pension and struggling financially. For those on the basic state pension, Pension Credit can add up to £2,522 per year. This boost can make a substantial difference in covering everyday expenses, especially as the cost of living continues to rise.
Beyond the increase in weekly payments, Pension Credit also unlocks additional financial support. Claimants automatically qualify for the £300 Winter Fuel Payment, which helps with heating bills during colder months. Additionally, pensioners over the age of 75 who receive Pension Credit are entitled to a free TV licence, worth £169.50 per year. When combined, these benefits total £2,991.50 annually, not including potential council tax reductions or housing benefit, which depend on individual circumstances and local authority policies.
How to Claim Pension Credit
Despite the financial relief it offers, many pensioners do not claim Pension Credit, often because they are unaware they qualify. The Department for Work and Pensions (DWP) estimates that nearly a million eligible pensioners are missing out on this extra income, meaning billions of pounds in unclaimed benefits remain unused.
To check eligibility and apply, pensioners can contact the Pension Credit hotline at 0800 99 1234 or apply online through the UK government’s official website. The application process is relatively straightforward and requires information on income, savings, and living arrangements. If eligible, pensioners could start receiving the extra payments within weeks.
For those struggling with the rising cost of living, this financial boost could provide much-needed relief, ensuring they receive the full support available to them.
