The Department for Work and Pensions (DWP) has revealed that despite an increase in claims, approximately 700,000 pensioners are still missing out on Pension Credit, a crucial financial support for low-income older people.
While a significant number of households have benefited from this assistance, the DWP has pointed out that many are not taking advantage of the support they are entitled to.
The DWP has not disclosed detailed reasons for this underclaiming but continues to encourage pensioners to check their eligibility.
According to information from Devon Live, the department is urging those potentially eligible to apply for this benefit to ensure they receive the financial aid they need.
Recent Increases in Pension Credit Claims
In the past year, the number of households receiving Pension Credit has risen by 58,800, following the announcement of means-testing for Winter Fuel Payments. However, despite this progress, 700,000 pensioners are still not claiming the support they are entitled to.
The DWP has also noted a surge in Pension Credit applications in 2024/25, with 321,000 requests, a 28% increase compared to the previous year. This has contributed to a 51% increase in claims following the July 29, 2024 announcement regarding Winter Fuel Payment means-testing.
Pensions Minister Torsten Bell commented:
“We are absolutely committed to ensuring every pensioner receives what they are entitled to. Thanks to our biggest ever awareness campaign, we have dealt with a record number of Pension Credit claims in the last 10 months, with an additional 58,800 households now receiving support.”
He also emphasised:
“Pension Credit can be a lifeline to those on low incomes, and I’d urge all pensioners who think they might be eligible after a change to their circumstances in later life to apply. This support for pensioners comes on top of our commitment to the Triple Lock, boosting the State Pension for millions by up to £1,900 this parliament.”
Reducing the Backlog and Processing Times
The DWP has successfully reduced the backlog of unprocessed Pension Credit applications from 30,000 at the end of June 2024 to 10,800.
This shows a marked improvement in the system, with the current average processing time for claims standing at 52.8 working days, or a little over 10 weeks. Older individuals filing new claims now can expect their payments, including any back pay, by the end of August 2024.
Pension Credit is a government benefit aimed at providing financial support to older individuals with low incomes. There are two main types: Guarantee Credit and Savings Credit.
Guarantee Credit ensures that your weekly income is at least £227.10 for a single person or £346.60 for a couple. Savings Credit provides a further amount for those who reached State Pension age before April 6, 2016, based on their savings and other income.
How to apply for Pension Credit
Pensioners or their families can quickly assess eligibility using the online Pension Credit calculator available on the GOV.UK website. For those who prefer direct assistance, the Pension Credit helpline can also guide applicants through the process.
Additionally, claiming Pension Credit can unlock access to other benefits such as Housing Benefit, free TV licenses, and NHS dental support.
A Call for Awareness
The DWP has committed to increasing awareness of Pension Credit through its largest-ever campaign. While many have benefitted from the Winter Fuel Payment means-testing changes, the DWP and experts continue to highlight the gap in claims.
With around 700,000 eligible pensioners still missing out, it remains crucial to address this ongoing issue and ensure that those in need receive the financial support they are entitled to.
Stephen Lowe, group communications director at retirement specialist Just Group, commented on the increase in claims:
“The take up of Pension Credit has been subject to a harsh spotlight since the UK Government first limited the Winter Fuel Payments to people who are in receipt of Pension Credit or certain other means-tested benefits. There has been a significant boost in take-up, with more than 162,000 claims awarded since the means-testing of the winter fuel payment was introduced.”
Lowe added:
“This is a significant success that will see these low-income pensioner households receiving this much-needed financial support, as well as unlocking the gateway to other valuable benefits, like the Winter Fuel Payments and free TV licenses for the over-75s.”
He also warned:
“The Prime Minister recently confirmed that eligibility for Winter Fuel Payments will be widened, but this should not distract attention from the important job of work to be done to increase the take-up of Pension Credit. This benefit is specifically targeted at the poorest pensioners, and it remains a concern that there are still around 700,000 families that are eligible for Pension Credit but not claiming it.”
Additional Support if You Receive Pension Credit
For those who qualify for Pension Credit, other forms of financial assistance are available, such as:
- Housing Benefit (if you rent your home)
- Support for Mortgage Interest (if you own your home)
- Council Tax discounts
- Free TV license for those aged 75 or over
- Help with NHS dental treatment, glasses, and transport costs for hospital appointments
- Help with heating costs through the Warm Home Discount Scheme, Winter Fuel Payments, or the Pension Age Winter Heating Payment
There is also a discount on the Royal Mail redirection service if you are moving house.
How to Determine Eligibility for Pension Credit
Older people, or their families, can quickly check their eligibility using the online Pension Credit calculator on GOV.UK. For those unable to use the online calculator, the Pension Credit helpline at 0800 99 1234 can provide assistance during business hours.
If eligible, pensioners can also claim Savings Credit and may receive:
- Up to £17.30 per week for a single person
- Up to £19.36 per week for a couple
These figures are in addition to the amounts provided under Guarantee Credit.
In May 2019, the law changed for mixed-age couples—couples where one partner is of State Pension age and the other is not.
They are now considered a working-age couple for means-tested benefits, meaning they cannot claim Pension Credit or pension-age Housing Benefit until both partners reach State Pension age.
