Hundreds of thousands of pensioners are missing out on vital financial support, potentially losing out on more than £3,900 each year, according to a warning from the DWP.
This crucial assistance, particularly for those on low incomes, can provide not only extra cash but also vital support with everything from council tax to winter fuel costs.
Pension Credit, a government benefit aimed at helping individuals who have reached state pension age and are on low incomes, is the key to unlocking this support.
Yet, it is estimated that up to 880,000 eligible households are failing to claim Pension Credit, leaving over £1.7 billion unclaimed, GB News reported.
Pension Credit tops up the income of those eligible to a minimum of £201.05 per week for single pensioners, or £306.85 for couples.
Those with disabilities or caring responsibilities may be entitled to more. However, despite the availability of this lifeline, research from Royal London reveals that 40% of pensioners have not checked whether they qualify for the benefit.
Royal London has partnered with Pocket Power to launch a new initiative aimed at helping pensioners navigate their financial options.
Through a free phone service, pensioners can access bill-switching support, potential savings on household costs, and assistance with their Pension Credit applications.
On average, Pocket Power saves each person £250—a sum that could be especially critical during the colder months.
In addition to the direct cash boost, claiming Pension Credit opens the door to a range of other benefits. Yet many pensioners remain unaware of the full spectrum of support available.
According to research, the top six lesser-known benefits include discounts on Royal Mail redirection services (93% unaware), housing benefits (57%), NHS dental treatment and glasses (nearly half unaware), potential council tax discounts (43%), a free TV licence for those over 75 (41%), and Winter Fuel Payments for energy costs (32%).
Several other benefits are more commonly claimed, with bus passes being the most widely used, accessed by 76% of pensioners, followed by free eye tests, prescriptions, and dental care at 66%.
Discounts at shops like Iceland and senior railcards are also commonly used, but financial support options such as the £150 Warm Home Discount are claimed by just 15% of retirees.
Sarah Pennells, a consumer finance specialist at Royal London, said: “While it’s great to see pensioners being proactive about their finances, there’s still a significant gap in understanding the full scope of Pension Credit and the benefits it unlocks,” she said.
She encouraged pensioners to take advantage of free online calculators to determine whether they are eligible for the credit and associated benefits.
“There’s no shame in accepting help, and these benefits can make a substantial difference in covering essential living costs, especially during the winter months.”
