Across the UK, a substantial number of older people are failing to claim a vital benefit designed to boost incomes for those on low retirement income — Pension Credit.

 Despite being worth thousands of pounds a year, the take-up remains worryingly low, leaving many pensioners struggling with rising costs of living and energy bills. 

What Is Pension Credit?

Pension Credit is a means-tested benefit for people who have reached State Pension age and have a low income. 

It comes in two parts:

• Guarantee Credit, which tops up weekly income to a minimum level, and

• Savings Credit, an extra amount for people on modest savings (for those who reached State Pension age before April 2016). 

When claimed, Pension Credit not only provides direct cash support — often several thousand pounds a year — but also opens the door to other benefits such as Housing Benefit, Council Tax reductions, Warm Home Discounts, free TV licences for over-75s, and help with NHS costs. 

Huge Sums Going Unclaimed

Despite its value, hundreds of thousands of eligible pensioners are not claiming Pension Credit:

• Government data and independent estimates reveal that up to around 900,000 pensioner households are entitled to Pension Credit but haven’t claimed it. 

• That translates to billions in unclaimed benefits, with recent figures indicating that up to £2.5 billion of potential Pension Credit goes unclaimed annually. 

• On average, a household not claiming could be missing out on more than £2,500–£4,300 a year, depending on individual circumstances.

• In 2023 figures, around 60–70 % of eligible pensioners claimed the benefit, leaving a significant minority without support. 

Why So Many Don’t Claim

Experts and campaigners highlight several reasons behind this low take-up:

• Lack of awareness: Many pensioners simply don’t know they are entitled to Pension Credit. 

• Misconceptions about eligibility: Owning a home, having savings, or receiving other pensions can wrongly lead people to assume they won’t qualify, when in fact they might. 

• Complexity and stigma: The application process and the stigma some associate with claiming benefits can deter potential applicants.

• Regional disparities: Some areas of the UK have markedly lower take-up rates than others, leading to inequality in access to the benefit. 

Wider Impact on Pensioners

Missing out on Pension Credit has a domino effect:

• Without Pension Credit, pensioners often lose access to linked benefits — such as extra support for energy bills and housing costs — which can total thousands more per year. 

• In the context of ongoing cost-of-living pressures, this loss of income can push older people deeper into financial hardship.

Efforts to Boost Take-Up

The UK Government and charities are trying to raise awareness:

• Targeted campaigns and trials are underway to reach those most likely to be missing out. 

• Local initiatives — for instance, in London — have unlocked millions in previously unclaimed Pension Credit for older residents. 

Pensioners — or people supporting older relatives and friends — are urged to check eligibility and apply if appropriate.

 Claims can often be made online, by phone, or by post, and in many cases benefits can be backdated if a person was eligible in earlier months.