New figures from the Department for Work and Pensions (DWP) indicate that up to 900,000 pensioner families who were entitled to Pension Credit did not claim it in 2024-25. This resulted in up to £2.4bn of available Pension Credit going unclaimed, an average of £2,500 per year for each eligible family.
Pension Credit is a means-tested benefit designed to top up the state pension for those on a low income. It is worth around £3,900 a year on average and can also provide access to other valuable benefits.
David Brooks, head of policy at Broadstone, an independent financial services consultancy, stated that many pensioners may not realise their entitlement, while others are deterred by the application process or the stigma associated with means-tested benefits.
For a single person, the guarantee credit element tops up weekly income to £238 in 2026-27, and for a couple, it tops up joint weekly income to £363.25. Savings credit is an additional payment for those who reached state pension age before April 2016 and have some retirement income.
Claiming Pension Credit can act as a 'passport benefit', potentially unlocking further support including housing benefit, council tax reduction, cold weather payments, and help with healthcare costs such as free NHS dental treatment. Those receiving the guarantee credit element and who are over 75 (or have a partner over 75) may also apply for a free TV licence.