Between April 2022 and March 2023, around three in 10 people eligible for the DWP benefit Pension Credit did not claim it – this means that up to £1.5billion in available Pension Credit went unclaimed
New Department for Work and Pensions (DWP) figures reveal that up to 760,000 pensioner households were entitled to Pension Credit but did not claim it.
Between April 2022 and March 2023, around three in 10 people eligible for the DWP benefit Pension Credit did not claim it that financial year. This means that up to £1.5billion in available Pension Credit went unclaimed, which amounts to a loss of £1,900 per eligible household.
Pension Credit is a DWP benefit that’s available to people on a low income and over the state pension age. The benefit tops up your weekly income to £218.15 a week if you are single or to £332.95 if you’re in a couple. Pension Credit is described as a “gateway benefit” as when you claim, you can also get other things such as cuoncil tax discounts, free TV licence and free dental treatment. The DWP says the benefit and its extras could be worth up to £3,900 a year.
Another benefit you can claim is the Winter Fuel Payment, which is worth up to £300 and helps older Brits with the higher costs of energy over winter. This benefit used to be given to all pensioners over the state pension age, but this year, the eligibility has changed, and only those claiming certain benefits – including Pension Credit – will get it.
Under the new rules, these 760,000 people would be eligible to get the £300 winter support but would not get it this year if they did not claim Pension Credit. Joanna Elson, chief executive of Independent Age, said the latest figures are “disappointing”.
She said: “Behind these statistics are real people who are worrying about whether they will be able to afford next month’s bills. Each year, our Independent Age advisers hear from thousands of older people living in financial hardship who are forced to make decisions such as whether to wash in warm water or eat fresh vegetables.”
Joanna noted that in 2022, the country was experiencing arguably the worst part of the cost of living crisis, which “hit older people on low incomes particularly hard as their income failed to keep up with rising prices.”
However, the latest figures show an improvement from the previous year, with around 65% of those entitled to Pension Credit claiming the benefit in 2023, compared with 63% the year before. The DWP data revealed that around 78% of Pension Credit that could have been claimed was claimed, while just 73% was claimed in the previous year.
The Labour government pledged to increase Pension Credit awareness after announcing the Winter Fuel Payment change. Data released in September revealed that nearly 75,000 Pension Credit claims had been made in the eight weeks after July 29 – a 152% increase compared to the eight weeks previous.
To check eligibility for Pension Credit, pensioners can use the online calculator on GOV.UK or contact the Pension Credit helpline directly on 0800 99 1234. The online tool requires details of income, savings, and investments for both the applicant and their partner, if applicable.
Applications can be started up to four months before reaching state pension age and can be backdated for up to three months. Most importantly, new claims submitted before December 21, 2024, if successful, will qualify for this year’s Winter Fuel Payment.
