Why all pensioners should check if they are eligible for Pension Credit

Up to 850,000 families have missed out on claiming Pension Credit which can be worth over £3,300 a year, despite being eligible for it, according to the Department for Work and Pensions (DWP).

More than a million are missing out

Currently, over 1.4 million pensioners in Britain receive Pension Credit. However, many are still not claiming this extra financial help and it is estimated up to £1.7bn is being left unclaimed.

By not claiming, they may miss out on a new, one-off £650 payment to more than 8 million low-income households on means tested benefits including those claiming Pension Credit.

The DWP wants to encourage more older people to apply for support to help them manage the rising cost of living, so they have marked Wednesday 15 June as the Pension Credit Day of Action.

Why do some pensioners not claim?

There are numerous reasons why some pensioners don’t claim their credits including a lack of awareness, feeling like they would not qualify and simply feeling that they do not want to take up the benefit because of a negative attitude to asking for help or feeling like a burden to the state.

Not only can claiming Pension Credit give low-income pensioners additional income and access to the new cost of living payment but can also provide access to a wide range of other benefits – such as help with housing costs, council tax or heating bills. For those over 75, this includes continued entitlement to a free TV licence.

How can pensioners claim Pension Credit?

Pension Credit can be claimed both by phone and online. There is also an online Pension Credit calculator, which helps pensioners check if they’re likely to be eligible and get an estimate of what they may receive.

“The cost-of-living crisis is causing many to suffer a significant strain on their finances and sadly pensioners may be some of the hardest hit.

“It is therefore so important that the close to a million eligible pensioners are encouraged to apply for Pension Credits. For so many of these people the additional funds made available by this application could make a huge difference to their ability to weather these troubling financial times. 

“Hopefully this action day can go some way to spreading the word about how valuable these credits are. Anyone who thinks they or their family members might be eligible should get online at gov.uk/pension-credit or call the 0800 99 1234 and enquire.

“For those who rely heavily on the state pension, the next year should hopefully be somewhat easier as once the triple lock is reinstated pensioner income will be uprated to match the unique inflationary environment we are living in. Until that happens though pensioner’s income is failing to keep up with inflation and they are suffering one of the worst disparities in their income versus the inflation rate.”

Jon Greer, head of retirement policy at Quilter.

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