Millions in Pension Credit Unclaimed as Pensioners Miss Out on Benefits

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Over a million pensioners in the UK currently claim Pension Credit, yet billions of pounds in support remain unclaimed each year.  The Department for Work and Pensions (DWP) estimates that up to £2.1 billion in Pension Credit is going unclaimed every year, meaning thousands of people are missing out on more than £3,900 annually in added benefits.

Designed to help low-income older people, the benefit offers far more than just a top-up to the State Pension, providing access to a range of financial and practical support that can significantly ease the burden of everyday costs. 

Pension Credit is available to those who have reached the State Pension age, currently 66 for both men and women. It is not automatically added to pension payments and must be applied for directly via the DWP, either online, by phone, or by post. Even pensioners with savings or who own their own home may still be eligible.

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Those receiving Pension Credit may qualify for a variety of other support schemes, including Housing Benefit, which can assist with paying rent. This is particularly relevant for those in social or supported housing. For private renters, support is based on the Local Housing Allowance or actual rent, whichever is lower. Those living in council accommodation may see their benefit reduced if they have unused bedrooms.

Winter Fuel Payments are another form of help. Pensioners earning under £35,000 a year receive these payments automatically, with no need to apply. The amount ranges from £200 to £300 per household, depending on age, with those over 80 receiving the higher sum. Payments are issued automatically, and those not entitled will see the amount recovered through HM Revenue and Customs.

For homeowners, the Support for Mortgage Interest (SMI) scheme can help with interest payments on mortgages or loans taken out for home improvements. This is offered as a loan, repayable with interest when the property is sold or transferred. It is recommended that homeowners speak to a mortgage provider before applying.

Council Tax Reduction (CTR) is also available, potentially cutting the bill by up to 100 percent. The rules differ slightly depending on whether one or both partners in a household have reached State Pension age. Those eligible should apply directly to their local council.

A free TV licence is available to those aged 75 or over if they or their partner receives Pension Credit. The licence covers everyone in the household and removes the need to pay the annual fee, which continues to rise with inflation until 2027.

Energy support includes the Warm Home Discount Scheme, providing a one-off £150 discount on electricity bills for those receiving the Guarantee Credit element of Pension Credit or meeting low-income criteria. Energy suppliers apply this discount directly.

Pensioners may also be eligible for assistance with NHS costs, including dental care, glasses, and transport to hospital appointments. In some cases, a discount on Royal Mail’s redirection service is available when moving home.

With so many forms of help tied to Pension Credit, older people are being encouraged to check if they qualify. A successful application could bring much-needed relief from increasing living costs and ensure access to unclaimed benefits.