Andy Burnham, the newly installed Labour Prime Minister, has declared his government a “cost of living government”. As part of that mission, the Department for Work and Pensions (DWP) is taking steps to ensure that millions of state pensioners are not missing out on a benefit that could be worth thousands of pounds a year.
Pension Credit is a top-up benefit for people of state pension age who are on a low income. According to official figures, an estimated 2.3 million households are eligible for it, yet around 910,000 of those households are not claiming. For those who do receive Pension Credit, the average award works out at £4,300 a year — money that could make a significant difference to a retired household’s budget.
What is Pension Credit?
Pension Credit is designed to provide extra money to help with daily living costs. It is separate from the state pension and can be claimed on top of any other retirement income. Once you are entitled, you may also qualify for additional help such as housing benefit, council tax reduction, or a free TV licence, as highlighted by Pensions Minister Torsten Bell.
Mr Bell said: “We’re committed to supporting harder-up pensioners however we can. Pension Credit is a simple way to give those who need it the most some extra support with bills or a free TV licence. I’d urge anyone who thinks they, or anyone they know, might be able to claim Pension Credit, to take a few minutes out of their day to check and apply. This country’s pensioners deserve every penny they are entitled to.”
Why are so many pensioners not claiming?
Despite the clear benefits, take-up remains worryingly low. Many older people assume they do not qualify because they have savings or a small private pension, while others simply are not aware that Pension Credit exists. In some cases, the application process itself can be off-putting, although the government insists it only takes a few minutes to check eligibility.
To address this, the DWP launched a trial in 2025 alongside the charities Age UK and Independent Age. As part of the trial, letters were sent to 2,000 pensioners across England. These individuals had been identified through data analysis as being highly likely to be eligible for Pension Credit but not currently claiming it. The letters encouraged them to put in a claim and receive the money they are due.
Expert support and reaction
Money Saving Expert, the consumer website founded by Martin Lewis, has long campaigned on the issue. In its guidance, the site told pensioners: “It takes minutes to check if you qualify, so don’t stall, just call.” That straightforward advice underlines how easy it is to find out where you stand.
Morgan Vine, Director of Policy and Influencing at Independent Age, also welcomed the trial. She said: “We’re pleased to support this proactive UK Government trial to increase the reach of Pension Credit. If you’re in financial hardship, where you live shouldn’t be a factor in whether or not you receive the money you’re entitled to, but at the moment it is. With the continued high cost of living, the older people that we speak to cannot afford to miss out on any of the money they are eligible for. Initiatives like this trial are a positive step towards increasing the number of people receiving the financial support they are entitled to, and we urge the UK Government to continue building on this strategic approach.”
How to apply for Pension Credit
If you think you might be eligible, the first step is to check. You can use the government’s online benefits calculator or contact the Pension Credit helpline directly. You will need details of your income, savings and any pensions you receive.
Do not delay, as the average award is £4,300 per year. For a pensioner living on a tight budget, that extra money could be the difference between heating the home and going without. As Mr Burnham’s government focuses on the cost of living, making sure every eligible pensioner gets this support is a vital part of the plan.
Pensioners who miss out this year could be losing out on a significant sum. With the trial already helping to spread the word, the message is clear: check your entitlement and claim what is rightfully yours.
