Thousands of UK pensioners with limited income are being urged to check their eligibility for Pension Credit after new data reveals many are missing out on hundreds of pounds in unclaimed benefits.
According to estimates, around £100 million worth of Pension Credit went unclaimed in the 2024/25 fiscal year – that’s an average of £700 per household.
With inflation and the cost of living continuing to strain household budgets, claiming Pension Credit could offer a vital financial lifeline to eligible retirees.
What is Pension Credit?
Pension Credit is an income-related benefit aimed at helping retirees on a low income. It not only tops up weekly income but also opens the door to additional financial assistance including housing benefits, council tax reductions, and the Winter Fuel Payment.
There are two main parts of Pension Credit:
- Guarantee Credit: tops up your weekly income if it’s below a certain threshold.
- Savings Credit: an extra payment for those who saved some money towards retirement. (Only available for those who reached State Pension age before 6 April 2016.)
Who Is Missing Out?
Stephen Lowe from Just Group revealed that nearly 140,000 households failed to claim what they were entitled to in 2024/25. Only 65% of eligible households actually claimed the benefit, leaving 760,000 households without support they could receive—worth an average of £1,900 per year.
Worse still, about 10% of claimants didn’t get their full entitlement, a significant rise from 8% the year before. This suggests that lack of awareness or inaccurate reporting of income or circumstances continues to plague the benefit system.
Are You Eligible for the £700 Pension Credit?
Eligibility depends on your income, assets, and whether you’ve reached the State Pension age. Pensioners who earn less than £218.15 a week (single) or £332.95 (couples) may qualify.
Eligibility
| Criteria | Single Person | Couple |
|---|---|---|
| Weekly income threshold | £218.15 | £332.95 |
| Age requirement | State Pension Age | State Pension Age |
| Savings Credit eligibility | Born before 6 April 1951 | At least one partner eligible |
| Residency | Must live in the UK | Must live in the UK |
| Benefit linkages | May increase access to other benefits such as: Winter Fuel Payment, Housing Benefit, Council Tax Reduction, Cold Weather Payment |
Note: You could be eligible for more or less depending on your personal circumstances, savings, and living arrangements.
How Much Could You Get?
The amount you receive depends on your current income and whether you’re eligible for Guarantee Credit, Savings Credit, or both.
Average Value of Pension Credit Benefits
| Type of Support | Average Annual Value |
|---|---|
| Pension Credit (base benefit) | £3,900 |
| Additional benefits access | Up to £1,500 |
| Winter Fuel Payment | Up to £300 |
| Total Estimated Support | £5,700+ |
Besides the £700 average missed amount, claiming Pension Credit can unlock thousands more in support through linked programs.
How to Apply for Pension Credit
You can apply for Pension Credit online, by phone, or via post.
Application Steps:
- Online: Visit gov.uk/pension-credit
- Phone: Call the Pension Credit claim line at 0800 99 1234
- Post: Download the claim form and mail it to the Pension Service
Information you’ll need:
- National Insurance number
- Income details
- Savings and investments
- Housing costs
- Bank account details
Why You Should Act Now
With many pensioners living on tight budgets, missing out on an average of £700 or more could mean skipping essentials like heating or food. Worse still, the longer you wait, the less backdated payment you might be able to claim.
It’s also important to update DWP about any changes in your circumstances, such as income from pensions, savings, or partner status. Overclaiming could lead to repayments later and potentially serious financial hardship.
Additional Benefits You Could Access
If you receive Pension Credit, you may also qualify for:
- Winter Fuel Payment (up to £300)
- Free TV Licence (if aged 75 or older)
- Council Tax Reduction
- Cold Weather Payment
- Help with NHS dental and optical costs
- Housing Benefit
These linked benefits could save you hundreds to thousands of pounds each year.
With an estimated £100 million left unclaimed, the Pension Credit benefit is a vital support many UK pensioners may be missing.
If your weekly income is under £218.15 (single) or £332.95 (couple), it’s worth checking your eligibility—you could receive an average of £700, plus unlock thousands more in additional help.
Visit the official government website or speak with a benefits advisor to check your entitlement today and make sure you’re not missing out on what you rightfully deserve.
FAQs
Can I claim Pension Credit if I own my home?
Yes. Owning a home does not disqualify you from receiving Pension Credit, especially if your income is below the threshold.
Is Pension Credit taxable income?
No. Pension Credit is not taxable, and it will not affect your tax liability.
Can I backdate my Pension Credit claim?
Yes, you can backdate it by up to 3 months, provided you were eligible during that period.