Nearly one million pensioners in the UK are failing to claim Pension Credit, a benefit that could add up to £1,574 a month to their income. The Department for Work and Pensions estimates that around 910,000 eligible households are missing out, often due to lack of awareness or misconceptions about eligibility.
Who Is Eligible for Pension Credit?
Pension Credit is designed to top up weekly income for retirees on lower incomes. Single pensioners with a weekly income below £238, or couples with combined income under £363.25, may qualify. The benefit can provide up to £1,574 per month, depending on individual circumstances.
Those born before 1960 are particularly urged to check their entitlement, as many in this age group may not realize they qualify. The exact amount received varies based on existing income and savings.
Why Is Pension Credit Underclaimed?
According to Money Saving Expert, around 2.3 million people are eligible for Pension Credit, but an estimated 910,000 do not claim it. Common reasons include people not knowing about the benefit, assuming they won't qualify, or believing the extra money would be negligible.
However, even a small Pension Credit award can act as a gateway to other benefits, such as help with housing costs, council tax reduction, and the Warm Home Discount. Money Saving Expert stated: "If you're retired and have income less than £238 a week as an individual, or £363 a week as a couple, you may be due Pension Credit worth £4,300 a year, on average. Plus, it entitles you to a whole raft of other benefits."
How to Claim Pension Credit
Claims can be made online via the government website, by phone, or by post. Pensioners are encouraged to apply as soon as possible, as backdated payments may be available for up to three months. The process is straightforward and requires details of income, savings, and housing costs.
Local councils and charities such as Age UK offer free advice and assistance with applications. With the cost of living continuing to rise, claiming Pension Credit could make a significant difference to household budgets.
