State pensioners sent urgent ‘sign up’ warning as 880,000 miss out on £3,900 benefit (Image: Getty)
Britons are being encouraged to check they’re claiming all of the financial support they’re entitled to as hundreds of thousands are thought to be missing out.
Work and Pensions Secretary Liz Kendall is launching a drive today for pensioners and their families to check whether they can sign up for Pension Credit.
The benefit now confers entitlement for the Winter Fuel Allowance, which helps pensioners with heating bills during the winter, providing between £100 and £300 to those who meet the criteria. The allowance was previously available to all pensioners in England and Wales born before a certain date, but now, only pensioners receiving certain means-tested benefits qualify.
Some 1.4 million are already signed up for Pension Credit, but an estimated 880,000 eligible households are not.
The benefit is worth an average of £3,900 a year, with the exact amount depending on individual circumstances.
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The number of Pension Credit claimaints has fallen by 11,000 over the past year, DWP figures show (Image: Getty)
Ms Kendall said:”The £22billion black hole in the public finances we have inherited has required us to take difficult decisions, but I am determined to ensure low-income pensioners are supported.
“That’s why I urge any pensioner, or their loved ones, to check if they could get Pension Credit. This Government remains completely committed to pensioners which is why we’re protecting the income of over 12 million pensioners through the Triple Lock.”
Chancellor of the Exchequer, Rachel Reeves said: “The dire state of the public finances we inherited from the previous Government means we’ve had to make some very difficult decisions. Our commitment to supporting pensioners remains, which is why we are maintaining the triple lock.
“We want pensioners to get the support they are entitled to. That’s why I urge all pensioners to check whether they are eligible for Pension Credit.”
Who is eligible for Pension Credit?
Pension Credit is a benefit distributed by the Department for Work and Pensions (DWP) to low-income pensioners and is separate from the state pension. It is designed to top-up a person’s income to help them achieve a more reasonable standard of living.
People can receive this even if they have other income, savings, or own their own home, however, they must claim it. It is not paid automatically.
The benefit tops up people’s weekly income to £218.15 if they’re single, or joint weekly income to £332.95 if they have a partner. People may also qualify for extra amounts if they’re a carer, severely disabled, or responsible for a child or young person. This is known as Guarantee Credit.
To claim, a person must live in England, Scotland or Wales and have reached the state pension age (currently 66 and over). They or their partner must also receive housing benefits.
If this applies, the person must then work out their total weekly income. This is calculated to include the person’s state pension, other pensions, earnings from employment and self-employment, and most social security benefits, for example, Carer’s Allowance.
People are most likely to be eligible for Pension Credit if their total weekly income is roughly under £220. However, if their income is higher, they might still be eligible.
Claiming Pension Credit is crucial for those eligible, as it serves as a gateway to additional benefits, including help with housing costs, dental treatment, and free TV licenses for those aged 75 or over.
The benefit can be applied for online, by phone on 0800 99 1234 or by post.
New figures from the DWP show there were 11,000 fewer Pension Credit recipients compared with the same period last year, and 24,000 fewer compared with 2022.
Tom Selby, director of public policy at AJ Bell, said the figures highlight the “significant challenge” facing the Government in increasing uptake before universal Winter Fuel Payments are scrapped later this year.
Mr Selby said: “[Chancellor Rachel Reeves’] axe unexpectedly fell on most pensioners’ Winter Fuel Payments when she addressed the ‘black hole’ in the country’s public finances at the end of July, with only lower-income retirees in receipt of benefits or income support set to qualify for the payment this year. Given the Winter Fuel Payment is worth up to £300 a year, this will represent a significant hit on the incomes of millions of retirees.
“Although these figures don’t cover the period since the chancellor announced the shock withdrawal, the fact the number of Pension Credit claimants has been gradually falling over the past two years presents a concerning picture for pensioners who most need support from the government but who may not be aware they need to claim.
“These figures also indicate that the government’s efforts to encourage more eligible pensioners to claim Pension Credit in June last year failed to increase the number of claims, meaning any new campaign will likely need additional backing from the government if it is to genuinely make a difference.
“The move means it is even more important that low-income households entitled to Pension Credit make a claim this year.”
